SunOpta Inc. Common Stock (STKL)

FairStock Score: 40/100 — MIXED

Key Financials

Strengths

• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics

Concerns

• Trades significantly above Graham Number ($2) with negative 216% margin of safety—limited downside protection
• Altman Z-Score of 0.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

SunOpta Inc. Common Stock is a micro-cap consumer defensive company valued at $769 million. The business generates $818 million in annual revenue with a 0.7% net margin. From a quality standpoint, SunOpta shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of 0.6 warrants caution. On valuation, the stock is commanding a steep 49.9x multiple, with trades far above its Graham Number ($2) with no margin of safety. Growth dynamics show revenue growing at 13.2% and profit growth of 160.1%. Our composite FairStock Score of 40/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 50x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer