Should I invest in Sundial Growers shares in 2025? Full ZA Analysis

What is Sundial Growers?

How much is the Sundial Growers stock?

The price of Sundial Growers stock is rising this week. As of now, SNDL is trading at $1.30 USD, up 0.77% over the past 24 hours, though posting a -0.76% change over the past week. The company’s market capitalisation stands at $334.48 million, with a 3-month average trading volume of 1.60 million shares. Sundial Growers does not report a P/E ratio due to negative earnings and pays no dividend, while its stock beta is a notably high 3.67. Investors in South Africa should be aware of significant share price volatility, which may create both risks and opportunities.

Our full analysis on the Sundial Growers stock

After a rigorous review of SNDL Inc. (formerly Sundial Growers) and its latest Q1 2025 financial statements, alongside a thorough examination of the stock’s price dynamics and market signals over the past three years, our analysis—leveraging proprietary algorithms synthesising financial metrics, technical indicators, peer comparisons, and sector trends—highlights numerous evolving positives. In the context of a defensive consumer sector undergoing global transformation, SNDL’s recent performance and strategic maneuvers have reignited investor interest. So, why might SNDL stock once again represent a strategic entry point into the cannabis and beverage industry in 2025?

Recent Performance and Market Context

SNDL shares currently trade at $1.30 on Nasdaq, capping a period of considerable volatility. Over the last year, the stock has experienced a significant adjustment (-40.09%), converging near its 52-week low of $1.24, yet maintaining robust day-to-day liquidity (1.60 million average daily volume). Notably, these subdued valuations reflect not weakness, but the digestion of sector-wide challenges—a common occurrence in high-beta sectors such as cannabis (SNDL's 5-year beta: 3.67).

Despite the market’s compressed multiples, SNDL’s Q1 2025 results surprised to the upside on earnings per share, with a BPA of -$0.04 versus consensus expectations of -$0.06, signalling improving operational control and expense optimization. The company reported a year-over-year revenue increase of 3.6% to CAD $204.9 million, achieving record gross margins of 27.6%. Strategic developments in the past quarter include the acquisition of 32 retail locations across Ontario, Alberta, and Saskatchewan, and the formal initiation of a strategic review to expand SNDL’s U.S. platform—a potential game-changer amidst looming U.S. regulatory shifts.

The broader North American cannabis landscape is on the cusp of transformation, with the Canadian retail market maturing and U.S. federal legalization prospects providing an attractive macroeconomic tailwind. Adjacent diversification into beverages and financial services further positions SNDL for resilience irrespective of cannabis sector cyclicality.

Technical Analysis

From a technical standpoint, SNDL presents a unique scenario for opportunistic entry. While momentum remains weighted to the downside in the medium term—with all major moving averages (MA20/50/100/200) above the current price—structural support has consistently formed at the $1.24–$1.27 region. This price band has proven resilient amidst sector pressure and downside volatility.

• RSI (14): 42.90—a neutral reading, avoiding any clear overbought/oversold extremes and indicating a potential for constructive price development as sentiment shifts.
• MACD: -0.03—suggests continued consolidation, often a precursor to base formation and future reversal.
• ADX (14): 15.31—signals the attenuation of negative momentum, while not yet confirming a robust upswing.

These readings, though currently neutral to mildly negative, often precede strong rallies in high-beta small caps after extended corrections, especially when supported by positive business developments and improving fundamentals. The convergence near technical support and confirmation of resilience at recent lows articulate a compelling technical case for anticipating a bullish reversal, particularly as upcoming catalysts approach.

Fundamental Analysis

SNDL’s fundamental profile underscores structural advantages that justify renewed interest:

• Revenue Growth: The Q1 2025 topline rose 3.6% YoY, outpacing industry averages and confirming organic expansion, underpinned by expanded retail reach (now 186 cannabis stores under three leading banners).
• Operational Excellence: Record gross margins (27.6%) indicate scaling efficiencies, with cost discipline reflected in BPA outperformance, even as the company posted a moderate net loss (CAD $14.7 million).
• Balance Sheet Strength: SNDL boasts CAD $221.62 million in cash, with no significant long-term debt—an invaluable buffer for weathering sector shocks and pursuing transformative M&A.
• Attractive Valuation: With a Price/Sales ratio of just 0.51 and a Price/Book multiple of 0.42, SNDL trades at significant discounts relative to both global cannabis peers and diversified consumer sector comparables. While the company is not yet profitable (P/E unavailable), these low multiples reflect an embedded margin of safety, offering asymmetric risk/reward.
• Market Leadership and Innovation: SNDL remains one of Canada’s largest private cannabis retailers, complemented by swift diversification into beverages and financial services—factors that mitigate single-sector risk and generate alternative cash flow streams.

These pillars, combined with management’s demonstrated adaptability (as evidenced by disciplined, accretive acquisitions and digital initiatives like the “Rise Rewards” loyalty program), suggest a business model engineered for resilience and upside as sector headwinds abate.

Volume and Liquidity

Market confidence is best illustrated by SNDL’s sustained trading volume; the 3-month average daily turnover of 1.60 million shares underscores substantial institutional and retail participation. The significant public float (253.9 million shares) ensures efficient price discovery and minimizes the risks of illiquidity that plague many micro-cap peers, enabling nimble entry and exit even during volatile sessions.

This robust liquidity profile is a cornerstone for short-term traders and longer-term investors alike, providing dynamic valuation potential, especially as conviction rebuilds around the company’s transformation story.

Catalysts and Positive Outlook

Several near- and medium-term catalysts set the stage for renewed bullish momentum:

• Strategic U.S. Expansion: The ongoing formal strategic review could pave the way for direct U.S. exposure—potentially transformative if regulatory developments around federal legalization advance.
• Retail Growth: Acquisition of additional retail assets and expansion to 186 stores buttresses SNDL’s leadership in Canadian cannabis, strengthening market share and reach.
• Category Diversification: Disciplined forays into beverage and financial service segments reduce dependence on a single vertical, while opening high-margin growth opportunities.
• “Rise Rewards” Loyalty Launch: April 2025 saw SNDL roll out a modernised customer engagement platform, catalyzing brand stickiness and compounding revenue.
• Strong Cash Reserves: Over CAD $221 million in cash enables both internal investment and opportunistic M&A as distressed competitors struggle—amplifying SNDL’s optionality in a consolidating sector.
• ESG and Innovation: Continuous improvement in operational practices and a forward-thinking leadership ethos enhance long-term sustainability—a crucial differentiator as investor scrutiny intensifies globally.

Add to this a gradually improving policy environment and growing social acceptance of cannabis consumption (in both Canada and the U.S.), and SNDL is positioned to leverage sector tailwinds wherever they materialize.

Investment Strategies

Given the current technical and fundamental setup, SNDL lends itself to several well-founded investment approaches:

• Short-Term: With the stock compressing towards established support ($1.24–$1.27), traders may perceive an attractive entry at or near a technical low. Any positive earnings surprise or regulatory headlines could catalyse a swift rally towards initial resistance at $1.34–$1.41, amplified by high historical volatility.
• Medium-Term: Investors anticipating clarification or progress on U.S. expansion, or tangible gains from newly acquired retail locations, could build positions ahead of these value-enhancing catalysts. The potential for sector-wide re-rating (should U.S. policy reform accelerate) could provide sharp, fundamental revaluation.
• Long-Term: For those with higher risk tolerance, SNDL's compelling price-to-book and price-to-sales multiples, coupled with balance sheet strength and market leadership, merit portfolio inclusion. The company’s proven adaptability, diversified revenue model, and deep cash reserves create a favourable landscape for value compounding if execution remains on track.

Positioning ahead of the next material catalyst—or pyramiding exposure upon technical confirmation of trend reversal—can allow investors to maximize asymmetrical risk/reward, even in a sector subject to periodic volatility.

Is it the Right Time to Buy SNDL?

In sum, SNDL Inc. combines the operational discipline, balance sheet strength, and innovative drive needed to thrive amidst shifting regulatory and economic backdrops. The alignment of compelling valuation (with shares trading near the bottom of their recent range), robust liquidity, and a clear roadmap for growth and diversification sets the stage for renewed investor interest.

While recent price performance may have tested patience, it is precisely at such technical lows—backed by visible business momentum and impending catalysts—that asymmetric opportunities tend to emerge. SNDL’s entry into U.S. markets, ongoing acquisition strategy, and investment in brand-building platforms like Rise Rewards may trigger sustained revaluation as sentiment improves.

For ZA investors seeking exposure to a well-capitalized, agile leader at the intersection of cannabis, retail, and alternative beverages, SNDL seems to represent an excellent opportunity. The confluence of discounted valuation, credible execution, and multiple upside drivers offers a rare setup: a fundamentally robust business potentially on the cusp of a new bullish phase as 2025 unfolds.

SNDL thus stands out as a name warranting thorough consideration for those looking to capitalize on recovery potential, sector re-rating, and innovation-led transformation in a high-conviction growth space. The current environment may prove to be a uniquely favourable window for positioning ahead of what could be the next wave of value creation.

How to buy Sundial Growers stock in ZA?

Buying Sundial Growers (SNDL) shares online is now both simple and secure, thanks to the robust protections provided by FSCA-regulated brokers in South Africa. Investors can typically choose between two main approaches: spot/cash buying (acquiring real shares directly) or CFD trading (speculating on price movements via contracts-for-difference). Each method offers different opportunities and risks, making it important to choose the one that fits your needs. To help you get started confidently, a comprehensive broker comparison awaits you further down this page.

Spot Buying

Cash purchase means you buy actual Sundial Growers (SNDL) shares on the Nasdaq, which are then held in your name in a brokerage account. Through a regulated South African or international broker, you place a buy order—most will charge either a fixed commission per trade or a small percentage, commonly ranging from ZAR 50–150 per transaction (or around $5–$8 USD).

Example

Let’s say you have $1,000 (about R19,000; rates may vary), and the current Sundial Growers share price is $1.30 USD. After a brokerage fee of $5, you could buy approximately 765 shares.
- Calculation: ($1,000 - $5 fee) / $1.30 ≈ 765 shares.

✔️ Gain scenario:
If the share price rises by 10% (to $1.43), your holdings increase in value to approximately $1,095.95.
- Result: +$100.95 gross gain, or just over +10% return on your investment (fees excluded for simplicity).

Trading via CFD

CFD trading allows you to speculate on Sundial Growers’ share price without owning the actual stock. With a CFD (contract-for-difference), you gain exposure to price changes, often with leverage. Brokers typically profit from the spread (the difference between buy/sell prices) and may charge overnight financing if your position stays open longer than a day.

Example

With a $1,000 margin deposit and 5x leverage, your market exposure is $5,000. If SNDL rises by 8%, your gain would be 8% × 5 = 40% on your initial stake.
- Profit: +$400 (before likely fees like spread and overnight costs).

Important: While leverage can amplify gains, it also increases losses. Always use risk controls when trading CFDs.

Final Advice

Before you invest, it’s essential to carefully compare brokers—fees, spreads, and available features can vary widely, impacting your bottom line. Think about your objectives: if you want to own the shares outright and hold long-term, spot buying may suit you; if you’re looking for flexible trading or short-term strategies, CFDs might be preferable. Ready to take the next step? See our detailed broker comparison below to choose the platform that matches your investment style and goals.

Our 7 tips for buying Sundial Growers stock

The latest news about Sundial Growers

SNDL shares showed resilience with intraday gains and better-than-expected Q1 net loss results. On May 30, 2025, SNDL Inc. (formerly Sundial Growers) closed at $1.30 USD, up 0.77% intraday, following the release of its first-quarter results earlier in May. Notably, the company's Q1 2025 earnings per share came in at -$0.04, beating market expectations of -$0.06, and the firm achieved a record gross margin of 27.6%. Although year-on-year share performance remains challenging, SNDL's ability to outperform consensus on profitability measures points to improved operational efficiency.

SNDL initiated a formal strategic review of its U.S. platform, raising prospects for further North American expansion. In the first quarter of 2025, SNDL announced a strategic review targeting its U.S. operations and potential listing structure adjustments. This review, communicated through official channels, underscores management's intent to capture additional cross-border growth opportunities as the North American cannabis market evolves. For South African investors, signs of increased North American footprint are constructive, as local exchanges and funds continue seeking diversified exposure to innovative and growth-oriented consumer segments like cannabis.

The acquisition of 32 new cannabis retail stores strengthened SNDL’s leadership in Canadian retail distribution. During the last week, SNDL completed the acquisition of 32 retail outlets (Cost Cannabis and T Cannabis) across Ontario, Alberta, and Saskatchewan, boosting its bricks-and-mortar presence to 186 locations. This strategic move signals a disciplined expansion approach, increasing market share and demonstrating the company's adaptability — an often-overlooked advantage when evaluating foreign-listed consumer firms for local portfolio diversification in South Africa, where global consumer trends are closely monitored by institutional stakeholders.

SNDL launched "Rise Rewards", a new loyalty program that could enhance customer retention and sales. In April 2025, SNDL introduced "Rise Rewards", aiming to strengthen brand engagement and foster repeat business across its extensive retail base. Loyalty initiatives such as these, particularly when rolled out at scale, offer upside to consumer spend and operational leverage. South African observers, where loyalty programs have proved effective in food and retail sectors, may view this as a forward-looking step that could translate into higher customer lifetime value and margin support.

The company maintains a solid balance sheet, supporting its growth initiatives and resilience amid sector volatility. SNDL reported CAD $221.62 million in cash as of its latest quarterly update, with no significant debt, despite marked share price volatility in the sector (beta 3.67). This robust liquidity underpins the firm’s ability to weather regulatory uncertainties abroad and pursue expansion without compromising financial stability. For investors in South Africa who often face FX and regulatory exposures with international holdings, SNDL’s strong financial foundation and absence of dividend risk offer reassurance in a traditionally volatile industry.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.