IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
© 2026 Blank Capital Research. All rights reserved. System Version: Aegis V8 (God Mode).
Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3558
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$470M
Zachary R. George
Sundial Growers Inc. engages in the cultivation, distribution, and sale of cannabis for the adult-use markets. The company also produces and distributes inhalable products, such as flower, pre-rolls, and vapes. It offers its products under the Top Leaf, Sundial Cannabis, Palmetto, and Grasslands brands.
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$SNDL SNDL Inc. | 40 | 30 | 30 | 30 | - | - | -34.0% | -28.5% | -17.1% | -17.1% | -14.4% | - | 0.0% | 15.0x | $470M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
SNDL Inc. (SNDL) receives a "Avoid" rating with a composite score of 39.8/100. It ranks #3558 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
Sign in to join the discussion.
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Zachary R. George
Chief Executive Officer
Labor Force
580
30
46
57
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for SNDL
Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Moderate investment profile
Below-average composite — caution warranted
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for SNDL.
View All RatingsImproving capital utilization rates confirmed
High margin volatility — erratic forensic earnings quality
ROE proxy -34.0% (sector -2.5%)
GM -17% vs sector 43%, OM -17% vs sector 1%
Capital turnover N/A
Rev growth N/A, 5yr history
Interest coverage -27.1x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our quantitative model flags SNDL Inc. with an Avoid rating, assigning a composite score of 39.8/100 and 1 out of 5 stars. Ranked #3558 of 7,333 stocks, SNDL falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
SNDL's quality score of 30/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -34.0% (sector avg: -2.5%), gross margins of -17.1% (sector avg: 42.5%), net margins of -14.4% (sector avg: -0.2%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 30/100, SNDL appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 0.52x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
With an investment score of 46/100, SNDL exhibits moderate growth-oriented spending. Key growth metrics include a return on assets of -28.5% (sector: -0.1%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
SNDL is currently showing below-average momentum at 30/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth data is not currently available, while a beta of 0.88 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 57/100, SNDL exhibits average financial resilience. Key stability metrics include a beta of 0.88 and a debt-to-equity ratio of 15.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
SNDL carries a short interest score of 79/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 15.00x), small-cap liquidity risk. At $470M market cap (small-cap), SNDL Inc. offers reasonable institutional liquidity.
SNDL Inc. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3558 of 7,333 overall (51st percentile). Key comparisons include ROE of -34.0% trailing the -2.5% sector median and operating margins of -17.1% below the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While SNDL currently exhibits a AVOID profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Upgrade catalyst
Improvement in Quality (30) would have the largest impact on the composite score.
ROE 1269% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 140% BELOW SECTOR MEDIAN
Op. Margin 1426% BELOW SECTOR MEDIAN
AUDIT DATA AS OF DEC 31, 2024 (Q3 FY2024)
We rate SNDL Inc. (SNDL) as Avoid with a composite score of 39.8/100 at a current price of $1.56. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.
The rating is primarily driven by strength in stability (57th percentile) and investment (46th percentile), which together account for the majority of the composite score. Offsetting weakness in quality (30th percentile) and momentum (30th percentile) tempers our overall conviction. We assign a No Moat rating (12/100), High uncertainty, and Poor capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs; the path to profitability. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
SNDL Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 39.8/100 places it at rank #3558 in our full 7,333-stock universe. At $470M in market capitalization, SNDL Inc. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Momentum indicators (30th percentile) suggest caution regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.
The margin cascade tells an important story: gross margins of -17% (-59.6pp vs sector) narrow to operating margins of -17% (-18.4pp vs sector) and net margins of -14.4%, yielding a gross-to-net conversion rate of N/A%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $1.56, SNDL Inc. is trading at a premium to fundamental value. Our value factor score of 30/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.
The stock currently trades at P/B of 0.5x, P/S of 0.2x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
A conservative balance sheet (15% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
The Avoid rating (composite 39.8/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Thin net margins of -14.4% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
Weak momentum (30th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
Below-average quality (30th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
We assign a High uncertainty rating to SNDL Inc.. Key risk factors include current negative profitability (net margin -14.4%), weak quality scores (30th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: current negative profitability (net margin -14.4%); weak quality scores (30th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 57th percentile and quality factor at the 30th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: conservative leverage (15% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.
We rate SNDL Inc.'s capital allocation as Poor. Key concerns include low returns on equity (-34.0%), negative profitability, weak asset returns (ROA -28.5%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — SNDL Inc. significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, SNDL Inc. receives a Avoid rating with a composite score of 39.8/100 (rank #3558 of 7,333). Our quantitative framework assigns a No Moat (12/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 38/100.
Our analysis does not support a constructive view on SNDL Inc. at this time. The combination of limited competitive advantages, high uncertainty, and poor capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign SNDL Inc. a meaningful economic moat, scoring 12/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, financial resilience, reached only 8.5/20.
The strongest moat sources are financial resilience (8.5/20) and growth durability (2.8/20). Interest coverage -27.1x. Rev growth N/A, 5yr history. These pillars form the core of SNDL Inc.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (0.1/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect SNDL Inc.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers are not clearly identifiable from current fundamentals. This may reflect a company in transition, a cyclical downturn, or structural challenges in the business model. We assign a quality factor of 30/100 which further underscores our concern regarding earnings sustainability.
The margin profile shows gross margins of -17%, operating margins of -17%, net margins of -14.4%. Return metrics include ROE of -34.0% and ROA of -28.5%. Relative to the Manufacturing sector, gross margins are 59.6 percentage points below the sector median of 43%, and ROE of -34.0% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 15%. The sector median D/E is 0%, putting SNDL Inc. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Elevated short interest (79th percentile) indicates that sophisticated market participants are betting against the stock.
SNDL Inc. (NASDAQ:SNDL) has experienced a 25% price drop in the last thirty days, contributing to an 8.3% decline over the past year. Its low price-to-sales (P/S) ratio of 0.6x, compared to an industry average of 4.5x, is attributed to disappointing revenue growth, which analysts predict will continue to lag behind the broader Pharmaceuticals industry. This weak forecast growth suggests that investors are not willing to pay a premium for the stock, indicating limited potential for a higher P/S ratio unless conditions improve.
SNDL Inc.'s (NASDAQ:SNDL) stock has fallen 25% in the last month, bringing its price-to-sales (P/S) ratio to 0.6x, significantly lower than the Pharmaceuticals industry average. This low P/S ratio is attributed to sluggish revenue growth and analyst forecasts predicting only 3.0% annual growth for SNDL over the next three years, compared to an industry average of 32%. Investors appear to be reacting to the company's inferior growth outlook, suggesting limited future upside without a significant change in performance.
SNDL Inc.'s shares have dropped 25% in the last month, contributing to an 8.3% annual decline, which the article attributes to the company's lacklustre revenue growth compared to its industry peers. Despite a low price-to-sales (P/S) ratio of 0.6x, significantly below the industry average, analysts forecast SNDL's revenue growth at 3.0% annually for the next three years, much lower than the broader industry's 32% projection. This underperformance in revenue growth is cited as the primary reason for the low P/S ratio, suggesting investors expect limited future growth.
SNDL Inc. has finalized the acquisition of five cannabis retail stores in Alberta and Saskatchewan from 1CM Inc. This transaction is the first phase of a larger agreement, with a second closing for 27 additional stores in Ontario expected in the first half of 2026, pending regulatory approvals. The acquisition aligns with SNDL’s strategy to expand its retail footprint as one of Canada's largest liquor and cannabis retailers, while supporting 1CM's growth strategy.
SNDL Inc. and 1CM Inc. announced the completion of the first phase of their arrangement agreement, with SNDL acquiring 5 cannabis retail stores from 1CM in Alberta and Saskatchewan. This transaction is part of a larger deal, with a second closing anticipated in the first half of 2026 for an additional 27 stores in Ontario, pending regulatory approvals. Both companies provided an overview of their operations, with SNDL highlighting its position as a major vertically integrated cannabis and liquor retailer in Canada, and 1CM focusing on its cannabis and liquor retail expansion strategy.
Above 50MA
37.18%
Net New Highs
+51081