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  5. CSW.A: hi, can I get your latest financial analysis of Corby please. [Corby Spirit and Wine Limited Unlimited Voting Common Shares]
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Q: hi,
can I get your latest financial analysis of Corby please. is there any growth? is the balance sheet fine? is the dividend sustainable?payout ratio? I have held for a long time, and capital keeps going down, and dividend up to worrisome levels. can you rank as buy, sell, hold.
Asked by chris on October 25, 2023
5i Research Answer:

CSW.A pays a nice yield of 6.6%, it's a smaller name with a market cap of $361M, and it's demonstrated low sales growth over the years. Its profit margins are decent, although they have contracted over the past several years, and it trades at a cheap valuation, but we feel this may be justified given its weakening fundamentals. Cash flows are sufficient to service dividends, and it has a good cash balance of $155M. Overall, it may be OK for income, but it does have small size risks and while its cash flows are enough to service dividends, it has experienced significant share price declines recently. Its payout ratio is roughly 80%. We would be OK with holding here. We would prefer to wait until macro headwinds have subsided and its momentum and growth outlook have improved before buying here.