TSE:CSW.A

16.85
0.06 (0.35%) 1d
0
DON'T BUY
A solid company with a good balance sheet and nice yield. There is a modest opportunity for upside. Since 2012 they have traded between 2.5 and 3.5 times book, with a downward basis trend. The share price is unchanged in ten years and has added no value to investors in that time. He calls these stocks, "grazers" -- too comfortable to become "wolves". Nice company -- it is not going anywhere.
breweries / beverages

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HOLD
He owned the stock at one point. It is a cash cow. It is mostly a marketing company. The question has always been if the parent will privatize the company. They pay a good dividend but there is very little growth. Hang on if you are in it for the long term.
breweries / beverages
HOLD
It does not really worry him. It is a steady-eddy type of thing. He'd like to see some revenue growth to be interested. He can make a case for owning it for income.
breweries / beverages
PAST TOP PICK
(A Top Pick Nov 27/18, Down 4%) They have good shelf space in Canadian liquor stores and possess logistical expertise. They could partner with a cannabis company to make weed drinks.
breweries / beverages
DON'T BUY
The name doesn't excite him much. They own 50% of Hiram Walker distillery, but nothing that is going to grow their top line. There are better names out there. Yield 4.9%
breweries / beverages
PAST TOP PICK
(A Top Pick Nov 27/18, Down 6%) They had a special dividend at the end of 2018. He likes this a lot. Cannabis will likely cannabilize a lot of beer sales. In the U.S. beer sales are hit when a state legalizes weed, but not wine and spirits. They keep generating cash and special dividends.
breweries / beverages
BUY
Loves it. Defensive in a down market and recession-proof. Alcohol is a high-cash flow generating business. There's a potential for privatization and for getting into cannabis. CSW has great expertise in getting shelf space in the LCBO, which could benefit the latter
breweries / beverages
TOP PICK
Good products and budiness model. Heading into a recession, alcohol does very well. It's like the old Rothman's, generating high cash flow and paying strong dividends, though the stock price doesn't do much. They could get into the cannabis space. (Analysts’ price target is $22.75)
breweries / beverages
DON'T BUY

He generally likes the spirits and liquor business. Corby is one of the leading players in Canada but there are international companies in this space. Pernod Ricard owns a controlling interest in this company and appears unwilling to pay out the cash balance in the company as a dividend or take it private or do anything else to unlock value. This is why he exited his position. He likes the company, it pays a good dividend, it runs a stable long-term business, but it doesn’t look to be generating a high enough total return at this time. On the other hand, in a market like the present one, owning a stable cash-producing business like a liquor business is not a bad idea.

breweries / beverages
COMMENT

This company is a real cash machine but low growth. This is mainly a marketing company for spirits. They are bringing on their own wine now. The company is controlled by Pernod Ricard in Europe. There has been ongoing speculation that the company would take itself private but that hasn’t happened and is not likely to. Every few years they pay a huge dividend because Pernod Ricard has a lot of debt. He much prefers the growth prospects of other companies that sell and market their own products. They’ve tried some initiatives to grow, such as selling product in the US (which was a failure). The dividend is very safe but it is unlikely to appreciate dramatically.

breweries / beverages
DON'T BUY

Only one analyst covers it. Earnings estimates are lower for next year and the year after than this year. Year over year sales (reported Feb 7) were up a glacial 1% and year over year earnings were down over 20%. Return on equity is forecast at a reasonable 13% but there is no growth. At a dividend of 4.1%, there are better opportunities.

breweries / beverages
BUY

Good company. Pretty safe with it. Spirits companies are great. Strong data with Corbys. ROIC 18% with 13% in recent years. Valuation reasonable. Good dividend at 3.8%.

breweries / beverages
COMMENT

This has been very steady and doing quite well. It doesn't get seriously bad. Well supported and has strong backing. Has a nice dividend. Well run.

breweries / beverages
COMMENT

Doesn't think you're going to get much in the way of capital appreciation on this. They pay $.84. Their year end is June 30. You are not going to get much in the way of capital appreciation, it's just the distributions that you get. His model price is $24.47, 14% higher than what it closed at yesterday. He sees so much value elsewhere that it would be hard for him to stick with this.

breweries / beverages
WATCH

He has been watching it. It is Canadian. It is confined to the Canadian market and so not participating as much. It is a worldwide company.

breweries / beverages
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Corby Spirit and Wine (A)(CSW.A-T) Rating

Ranking : 1 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 0

Stockchase rating for Corby Spirit and Wine (A) is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Corby Spirit and Wine (A)(CSW.A-T) Frequently Asked Questions

What is Corby Spirit and Wine (A) stock symbol?

Corby Spirit and Wine (A) is a Canadian stock, trading under the symbol CSW.A-T on the Toronto Stock Exchange (CSW.A-CT). It is usually referred to as TSX:CSW.A or CSW.A-T

Is Corby Spirit and Wine (A) a buy or a sell?

In the last year, there was no coverage of Corby Spirit and Wine (A) published on Stockchase.

Is Corby Spirit and Wine (A) a good investment or a top pick?

Corby Spirit and Wine (A) was recommended as a Top Pick by on . Read the latest stock experts ratings for Corby Spirit and Wine (A).

Why is Corby Spirit and Wine (A) stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Corby Spirit and Wine (A) worth watching?

0 stock analysts on Stockchase covered Corby Spirit and Wine (A) In the last year. It is a trending stock that is worth watching.

What is Corby Spirit and Wine (A) stock price?

On 2022-11-24, Corby Spirit and Wine (A) (CSW.A-T) stock closed at a price of $16.85.