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Tuesday, October 20, 2020

Sundial Growers Inc. (NASDAQ:SNDL) Recent Earnings Shows Major Concern

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Sundial Growers Inc. (SNDL) shares are trading at lower $0.19 and the avg recommendation for the stock is Hold.

To add more color to this target, the company’s high over the last year is $4.85 and the low is $0.17. Over the last 52 weeks, SNDL is down -95.34% while the S&P 500 is up 16.45%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, SNDL reported a profit of $-10.92 million. Sundial Growers Inc. also saw revenues decrease to $14.57 million. In addition, SNDL has free cash flow of -$19.47 million as of 06-2020. The company’s EBITDA came in at -$20.45 million which compares well with its peers.

SNDL Return on Equity (ROE) is -167.10%, and its Return on Assets is -72.10%. All told, it is clear that, SNDL needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SNDL has a short ratio of 0.78 and outstanding shares of 144.62M.

Company Outlook

SNDL has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 23.31 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.00. Sundial Growers Inc. SNDL also noted assets of $218.3 million at the end of the last quarter. Investors should also keep an eye on sector updates as SNDL has historically followed its peers on positive news.

All told, Sundial Growers Inc. SNDL has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SNDL represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Sundial Growers Inc. SNDL is now commanding a market cap of 36.21M and a float of 109.87M. SNDL is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SNDL stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in SNDL, either long or short, and we have not been compensated for this article.

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