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Corby Spirit&Wine A (TSE:CSW.A)
:CSW.A
Canadian Market

Corby Spirit&Wine A (CSW.A) AI Stock Analysis

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Corby Spirit&Wine A

(TSX:CSW.A)

Rating:66Neutral
Price Target:
C$15.00
▲(8.62%Upside)
Corby Spirit & Wine A shows strong financial performance and resilience in a challenging market, supported by strategic growth and a high dividend yield. However, technical indicators suggest potential short-term weakness, and recent earnings reflect some challenges. Overall, the stock is well-positioned for long-term stability with attractive income potential.

Corby Spirit&Wine A (CSW.A) vs. iShares MSCI Canada ETF (EWC)

Corby Spirit&Wine A Business Overview & Revenue Model

Company DescriptionCorby Spirit and Wine Limited is a leading Canadian marketer and distributor of spirits and wines. Established in 1924, the company operates in the alcoholic beverage industry, focusing on the production, marketing, and sale of a diverse portfolio of high-quality spirits and wines. Corby is known for its ownership and representation of well-established brands in Canada, including Wiser's Canadian Whisky, Lamb's Rum, and Polar Ice Vodka, along with an array of international brands.
How the Company Makes MoneyCorby Spirit and Wine Limited generates revenue through the production, marketing, and sale of its proprietary brands of spirits and wines, as well as through representation agreements with international partners. The company earns money by selling these alcoholic beverages to wholesalers, retailers, and directly to consumers in various markets. A significant portion of their revenue comes from long-term representation agreements with international spirit brands, such as Pernod Ricard, allowing them to leverage established distribution networks and marketing expertise. Corby's revenue streams are bolstered by strategic marketing and brand management initiatives aimed at maintaining and expanding its market share within the competitive alcoholic beverage industry.

Corby Spirit&Wine A Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q3-2025)
|
% Change Since: -7.87%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Corby's resilience and ability to outperform the market despite challenges in the broader spirits industry. Strong growth in the RTD segment and strategic acquisitions contributed positively, counterbalancing declines in revenue and earnings for Q3. The company maintained strong cash flow and increased dividends, indicating financial stability.
Q3-2025 Updates
Positive Updates
Resilient Revenue Growth
Reported revenue growth of 7% year-to-date, driven by strong performance in the ready-to-drink (RTD) segment and strategic acquisitions.
Market Share Gains
Corby Spirit and Wine gained 1.6 percentage points in market share, outperforming the overall market decline of 3.6% with only a 1.9% decline.
RTD Segment Success
The RTD category showed a growth of 9%, with Corby gaining significant market share, demonstrating effective portfolio management and expansion.
Strong Cash Flow
Year-to-date cash flow from operating activities increased to $29.2 million, supported by higher net earnings and favorable working capital changes.
Increased Dividend
The company declared a dividend of $0.23 for Q3, marking a 10% increase over the previous year.
Negative Updates
Decline in Q3 Revenue and Earnings
Q3 reported a 1% decrease in revenue and a 20% decline in adjusted earnings per share, impacted by high comparison basis from the previous year.
Challenging Spirits Market
The spirits market in Canada declined by 3.6%, with specific challenges in Ontario due to technical effects and reduced consumer purchasing patterns.
Export Revenue Decline
Export revenue decreased by 12% year-over-year, affected by high base comparisons from the previous year’s growth.
Company Guidance
During Corby Spirit and Wine's Fiscal Year 2025 Q3 Financial Results Conference Call, the company provided guidance highlighting several key metrics. The company reported a 7% increase in year-to-date revenue, driven by acquisitions and channel expansions, despite a 1% decline in Q3 revenue due to challenging market conditions. Corby's net debt-to-EBITDA ratio remained healthy at 1.6 times, reflecting strong financial stability. The spirits market in Canada faced a decline of 3.6%, but Corby outperformed with a limited decline of 1.9%, gaining market share of 1.6 points above the market. The ready-to-drink (RTD) category showed significant growth, with Corby's RTD portfolio increasing by 9%. Additionally, adjusted earnings per share grew by 1% year-to-date, with a dividend increase of 8% over the same period last year. The company remains optimistic about continued market share gains and plans to leverage its diversified portfolio and strategic initiatives to navigate future challenges.

Corby Spirit&Wine A Financial Statement Overview

Summary
Corby Spirit & Wine A demonstrates strong financial health with solid profitability, moderate revenue growth, manageable debt levels, and strong cash flow generation. While there are minor fluctuations in margins and leverage ratios, the overall financial position is robust and indicative of a stable and well-managed business.
Income Statement
72
Positive
The company exhibits a strong gross profit margin of 50.68% for TTM, slightly declining from 50.42% in the previous annual report. The net profit margin remains robust at 10.87% for TTM, showing stability compared to 10.41% previously. A significant revenue growth rate of 5.27% between the last two annual periods is a positive indicator, although EBIT and EBITDA margins have shown slight fluctuations. Overall, the income statement reflects solid profitability and moderate growth.
Balance Sheet
68
Positive
The company's debt-to-equity ratio stands at 0.61 for TTM, indicating moderate leverage and a slight increase from 0.78 in the previous annual report. The return on equity is stable at 14.11% TTM, suggesting efficient use of equity in generating profits. However, the equity ratio has slightly decreased to 46.80% from 43.20%, which might indicate an increased reliance on debt. Overall, the balance sheet shows a healthy financial position with manageable debt levels.
Cash Flow
75
Positive
Free cash flow grew by 50.73% in the most recent annual period, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio stands at 1.75 for TTM, indicating effective conversion of income into cash. Furthermore, the free cash flow to net income ratio is 1.62, highlighting strong cash flow relative to earnings. The cash flow statement reflects a strong liquidity position and efficient cash management.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
241.75M229.66M162.96M159.39M159.78M153.36M
Gross Profit
122.50M115.77M94.11M96.04M97.71M92.92M
EBIT
45.98M40.74M28.34M32.67M41.49M35.88M
EBITDA
63.32M57.11M44.95M47.11M53.35M47.09M
Net Income Common Stockholders
26.28M23.91M21.96M23.40M30.59M26.65M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.41M32.00M155.01M52.46M94.40M81.68M
Total Assets
397.96M420.48M362.60M253.51M254.41M234.38M
Total Debt
114.33M140.84M101.62M3.70M4.36M4.92M
Net Debt
112.92M136.19M-53.39M-48.76M-90.04M-76.76M
Total Liabilities
211.72M238.88M182.61M70.31M66.46M61.76M
Stockholders Equity
186.24M181.60M180.00M183.21M187.94M172.62M
Cash FlowFree Cash Flow
42.56M28.24M30.71M-14.18M37.57M46.27M
Operating Cash Flow
45.91M31.52M35.43M45.52M40.91M49.54M
Investing Cash Flow
-1.12M-23.74M-107.00M-17.72M-15.44M-23.49M
Financing Cash Flow
-43.38M-3.13M71.57M-27.80M-25.47M-26.05M

Corby Spirit&Wine A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.81
Price Trends
50DMA
14.45
Negative
100DMA
14.04
Negative
200DMA
13.11
Positive
Market Momentum
MACD
-0.20
Negative
RSI
49.68
Neutral
STOCH
61.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CSW.A, the sentiment is Positive. The current price of 13.81 is below the 20-day moving average (MA) of 13.85, below the 50-day MA of 14.45, and above the 200-day MA of 13.11, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 61.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CSW.A.

Corby Spirit&Wine A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
C$1.44B12.5411.45%1.93%16.82%21.82%
69
Neutral
C$388.96M14.0114.27%7.03%16.37%25.61%
66
Neutral
C$388.96M15.1114.27%6.52%16.37%25.61%
65
Neutral
$8.88B15.054.75%203.76%3.54%-2.50%
60
Neutral
C$214.79M40.721.98%5.19%5.42%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CSW.A
Corby Spirit&Wine A
14.00
0.83
6.30%
TSE:LAS.A
Lassonde
216.06
64.15
42.22%
TSE:ADW.A
Andrew Peller A NV
4.69
1.08
29.92%
TSE:CSW.B
Corby Spirit&Wn B NV
12.85
1.17
10.02%

Corby Spirit&Wine A Corporate Events

DividendsFinancial Disclosures
Corby Spirit and Wine Reports Q3 Fiscal 2025 Results and Declares Dividend
Neutral
May 14, 2025

Corby Spirit and Wine Limited reported its fiscal 2025 third-quarter results, showing a slight decline in revenue by 1% to $48.0 million compared to the previous year, primarily due to normalization of sales and inventory reductions by the Ontario liquor board. Despite these challenges, the company demonstrated resilience with a 7% increase in revenue for the nine-month period ending March 31, 2025, driven by the inclusion of Nude brands and a dynamic ready-to-drink portfolio. Adjusted EBITDA for the third quarter decreased by 10%, while the nine-month period saw a 4% increase. The company declared a quarterly dividend of $0.23 per share, maintaining a solid balance sheet and strong cash flow generation.

Financial Disclosures
Corby Spirit and Wine to Announce Q3 2025 Results
Neutral
Apr 14, 2025

Corby Spirit and Wine Limited announced that it will release its fiscal 2025 third quarter results on May 14, 2025, after market close. The following day, a conference call will be hosted by the company’s President and CEO, Nicolas Krantz, and CFO, Juan Alonso, to discuss the results with the investment community. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic positioning within the competitive spirits and wine industry.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.