Sunopta Story

STKL -- USA Stock

USD 14.77 0.76 4.89%

Macroaxis Story

Sunopta is scheduled to announce its earnings today. While some millenniums are indifferent towards consumer defensive space, it makes sense to summarize Sunopta as a unique investment alternative. Here we also measure the ability of Sunopta to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.

Published over a month ago

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Does Sunopta (NASDAQ:STKL) has enough cash to last in April?

This firm currently holds 505.36 M in liabilities with Debt to Equity (D/E) ratio of 2.03, implying Sunopta greatly relies on financing operations through barrowing. The company has a current ratio of 1.31, which is within standard range for the sector. About 73.0% of the company shares are owned by institutional investors. Sunopta recorded a loss per share of 0.12. The entity had not issued any dividends in recent years.

Sunopta financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Sunopta, including all of Sunopta's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Sunopta assets, the company is considered highly leveraged. Understanding the composition and structure of overall Sunopta debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.

Please read more on our technical analysis page.

How important is Sunopta's Liquidity

Sunopta financial leverage refers to using borrowed capital as a funding source to finance Sunopta ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sunopta financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Sunopta's total debt and its cash.

How Sunopta utilizes its cash?

To perform a cash flow analysis of Sunopta, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Sunopta is receiving and how much cash it distributes out in a given period. The Sunopta cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

A Deeper Perspective On Sunopta

Sunopta reported the previous year's revenue of 1.26 B. Net Loss for the year was (10.64 M) with profit before overhead, payroll, taxes, and interest of 116.15 M.

Possible April collapse of Sunopta?

New expected short fall indicator falls down to -2.96. Possible price surge? Sunopta currently demonstrates below-average downside deviation. It has Information Ratio of 0.25 and Jensen Alpha of 0.91. However, we advise investors to further question Sunopta expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sunopta's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sunopta's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Take On Sunopta

While few other entities within the packaged foods industry are still a little expensive, even after the recent corrections, Sunopta may offer a potential longer-term growth to stakeholders. To summarize, as of the 3rd of March 2021, our concluding 30 days advice on the company is Hold. We believe Sunopta is overvalued with below average chance of bankruptcy for the next two years.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Sunopta. Please refer to our Terms of Use for any information regarding our disclosure principles.

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