Corby Spirit&Wn B NV (CSW.B) AI Stock Analysis

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Corby Spirit&Wn B NV

(TSX:CSW.B)

Rating:69Neutral

Price Target:

C$14.00

▲(9.29%Upside)

Corby Spirit & Wine's strong financial performance, particularly in revenue growth and cash flow generation, positively influences its stock score. However, weak technical indicators and challenges highlighted in the earnings call, such as a decline in Q3 revenue and earnings, moderate the overall score. The stock's fair valuation and high dividend yield provide some balance, appealing to income-focused investors.

Corby Spirit&Wn B NV (CSW.B) vs. iShares MSCI Canada ETF (EWC)

Market Cap

C$388.96M

Dividend Yield7.03%

Average Volume (3M)3.97K

Price to Earnings (P/E)14.0

Beta (1Y)0.14

Revenue Growth16.37%

EPS Growth25.61%

CountryCA

Employees184

SectorConsumer Defensive

Sector Strength64

IndustryBeverages - Wineries & Distilleries

Share Statistics

EPS (TTM)0.16

Shares Outstanding4,194,536

10 Day Avg. Volume3,010

30 Day Avg. Volume3,967

Financial Highlights & Ratios

PEG Ratio6.71

Price to Book (P/B)2.08

Price to Sales (P/S)0.00

P/FCF Ratio10.07

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Corby Spirit&Wn B NV Business Overview & Revenue Model

Company DescriptionCorby Spirit and Wine Limited (CSW.B) is a leading Canadian manufacturer, marketer, and distributor of spirits and wines. The company is known for its diverse portfolio of owned and represented brands, including some of Canada's most renowned and enduring labels. Operating primarily within the alcoholic beverage industry, Corby Spirit and Wine focuses on producing high-quality products that cater to a wide range of consumer preferences, both domestically and internationally.

How the Company Makes MoneyCorby Spirit and Wine Limited generates revenue through the sale of its owned brands and the representation of international brands in Canada. The company owns several popular Canadian spirits brands, such as J.P. Wiser's Canadian Whisky, Lamb's Rum, and Polar Ice Vodka. Additionally, Corby represents Pernod Ricard's brands, including Absolut Vodka, Chivas Regal, and Jameson Irish Whiskey, among others, in the Canadian market. The company earns money through wholesale distribution to liquor boards and retailers, as well as direct sales in some regions. Corby's strategic partnerships with global spirits companies and its focus on brand innovation and marketing also contribute significantly to its financial performance.

Corby Spirit&Wn B NV Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q3-2025)

% Change Since: -5.88%|

Next Earnings Date:Aug 20, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed performance with notable achievements in revenue growth and market share gains, particularly in the RTD segment, despite challenges in the core spirits market and a decline in export revenue. The increase in dividends and strong cash flow are positive indicators, but the decline in Q3 figures and the broader market challenges temper the overall outlook.

Q3-2025 Updates

Positive Updates

Revenue Growth

Reported revenue growth of 7% for the year-to-date, driven by the acquisition of Nude beverage RTD brands and route-to-market modernization in Ontario.

Market Share Gains

Corby outperformed the declining Canadian spirits market with a decline of only 1.9% versus the market's 3.6% decline, gaining 1.6 points of market share.

RTD Segment Performance

Strong performance in the Ready-to-Drink (RTD) segment, with a reported growth of 9% for the year-to-date, capitalizing on grocery and convenience store expansions in Ontario.

Dividend Increase

Declared a dividend of $0.23 per share for Q3, marking a 10% increase over the same period in FY '24.

Strong Cash Flow

Generated $29.2 million in cash flow from operating activities, demonstrating robust liquidity and a favorable working capital position.

Negative Updates

Q3 Revenue Decline

Q3 revenue declined by 1%, with a significant 9% decline in organic revenue excluding Nude brands, impacted by destocking at the Ontario Liquor Board and high comparison from the previous year.

Export Revenue Decline

Export revenue declined by 12% year-over-year, impacted by lapping high pipeline sales to new markets in the previous year.

Overall Spirits Market Decline

The Canadian spirits market is challenging, with an overall decline of 3.6%, particularly in Ontario, though Corby performed better than the market.

Q3 Earnings Per Share Decrease

Q3 adjusted earnings per share decreased by 20% and reported earnings per share decreased by 6%, due to high comparison from the previous year and increased costs.

Company Guidance

During Corby Spirit and Wine's Fiscal Year 2025 Q3 conference call, the company provided several key metrics and insights into their financial performance. Despite a challenging market environment, Corby's year-to-date revenue increased by 7%, driven by the acquisition of the Nude beverage brands and growth in the ready-to-drink (RTD) category, which grew by 9%. The company's net debt-to-EBITDA ratio remained healthy at 1.6 times, supporting continued dividend payments. While the spirits market in Canada declined by 3.6%, Corby limited its decline to 1.9%, gaining 1.6 points in market share. The company's Q3 performance was impacted by high comparison from the previous year, resulting in a 1% decrease in reported revenue and a 10% decline in adjusted EBITDA. However, Corby remains confident in its diversified portfolio and strategic initiatives, including the modernization of the route-to-market in Ontario and leveraging opportunities from the removal of U.S. products due to trade tariffs.

Corby Spirit&Wn B NV Financial Statement Overview

Summary

Corby Spirit & Wine shows strong financial health with robust revenue and profit growth, efficient operations, and strong cash flow generation. The balance sheet is solid, but rising leverage needs monitoring.

Income Statement

Very Positive

The company exhibits strong profitability with a consistent gross profit margin around 50%. The net profit margin remains healthy, and there is a solid revenue growth trend with TTM revenues up significantly from the previous year. EBIT and EBITDA margins are robust, showcasing efficient operational management.

Balance Sheet

Positive

The balance sheet is strong, with a healthy equity ratio indicating strong capitalization. However, the debt-to-equity ratio has increased, suggesting rising leverage. ROE is solid, indicating efficient use of equity to generate profits.

Cash Flow

Positive

Operating cash flow is strong and covers net income comfortably, reflecting good cash conversion. Free cash flow has grown, indicating strong cash generation capabilities. However, fluctuations in investing and financing cash flows suggest some volatility in cash management strategies.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
241.74M	229.66M	162.96M	159.39M	159.78M	153.36M
	Gross Profit
122.45M	115.77M	94.11M	96.14M	97.71M	92.92M
	EBIT
45.98M	40.74M	28.34M	32.67M	41.49M	35.88M
	EBITDA
63.34M	57.11M	44.95M	47.11M	53.35M	47.09M
	Net Income Common Stockholders
26.28M	23.91M	21.96M	23.40M	30.59M	26.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.41M	32.00M	155.01M	52.46M	94.40M	81.68M
	Total Assets
397.96M	420.48M	362.60M	253.51M	254.22M	234.38M
	Total Debt
114.33M	140.84M	101.63M	3.70M	4.36M	4.92M
	Net Debt
112.92M	136.19M	-53.38M	-48.76M	-90.04M	-76.76M
	Total Liabilities
211.72M	222.67M	182.61M	70.31M	66.42M	61.76M
	Stockholders Equity
186.24M	181.60M	180.00M	183.21M	187.81M	172.62M
Cash Flow		Free Cash Flow
42.56M	28.24M	30.71M	-14.18M	37.57M	46.27M
	Operating Cash Flow
45.91M	31.52M	35.43M	45.52M	40.76M	49.54M
	Investing Cash Flow
-1.12M	-23.74M	-107.00M	-17.72M	-15.29M	-23.49M
	Financing Cash Flow
-43.38M	-3.13M	71.57M	-27.80M	-25.47M	-26.05M

Corby Spirit&Wn B NV Technical Analysis

Technical Analysis Sentiment

Negative

Last Price12.81

Price Trends

50DMA

13.19

Negative

100DMA

12.94

Negative

200DMA

12.35

Positive

Market Momentum

MACD

-0.10

Positive

RSI

38.61

Neutral

STOCH

8.33

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CSW.B, the sentiment is Negative. The current price of 12.81 is below the 20-day moving average (MA) of 13.05, below the 50-day MA of 13.19, and above the 200-day MA of 12.35, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 38.61 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CSW.B.

Corby Spirit&Wn B NV Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSW.B	69 Neutral	C$388.96M	14.01	14.27%	7.03%	16.37%	25.61%
Sector *	65 Neutral	$8.88B	15.01	4.76%	203.76%	3.54%	-2.49%
ADW.A	60 Neutral	C$214.79M	40.72	1.98%	5.19%	5.42%	―
HBFG	58 Neutral	$146.29M	―	-183.38%	―	100.08%	-22.44%
BKTS	37 Underperform	C$10.90M	―		―	-53.78%	33.12%

* Consumer Defensive Sector Average

Performance Comparison

TSE:CSW.B

Corby Spirit&Wn B NV

12.81

1.23

10.62%

TSE:BKTS

Beckett's

0.03

>-0.01

-14.29%

TSE:HBFG

Happy Belly Food Group

1.13

0.52

85.25%

TSE:ADW.A

Andrew Peller A NV

4.74

1.10

30.22%

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.