Q: What do you think of the Q2 results released Feb. 12. The dividend was increase 5%.
Would you continue to hold? Could a case be made to buy?
Would you continue to hold? Could a case be made to buy?
5i Research Answer:
CSW.A has not analysts so no estimates. Revenue rose 10% to $61.7M, with 5% organic growth. EBITDA rose 10% to $17.2M. Earnings rose 8%. As noted the dividend was raised. The RTD acquisition is performing well. Marketing and sales expenses increased only 4%, so margins improved. We would still prefer a HOLD over a BUY. Even with improvements, earnings on a per share level are essentially the same as they were seven years ago. With some declining trends in certain alcohol categories, we would be less inclined to buy or add after the stock's 13% YTD gain.