NasdaqGS:CONN

Stock Analysis Report

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Executive Summary

Conn's, Inc. operates as a specialty retailer of durable consumer goods and related services in the United States.


Snowflake Analysis

Undervalued with questionable track record.


Similar Companies

Share Price & News

How has Conn's's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CONN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.2%

CONN

6.2%

US Specialty Retail

2.0%

US Market


1 Year Return

-62.8%

CONN

-0.1%

US Specialty Retail

7.1%

US Market

Return vs Industry: CONN underperformed the US Specialty Retail industry which returned -3.8% over the past year.

Return vs Market: CONN underperformed the US Market which returned 4.6% over the past year.


Shareholder returns

CONNIndustryMarket
7 Day25.2%6.2%2.0%
30 Day34.5%12.7%6.0%
90 Day-4.4%-8.6%-0.05%
1 Year-62.8%-62.8%1.3%-0.1%9.5%7.1%
3 Year-56.5%-56.5%22.2%16.3%30.7%22.1%
5 Year-80.0%-80.0%17.8%7.7%55.6%38.0%

Price Volatility Vs. Market

How volatile is Conn's's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Conn's undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CONN ($7.79) is trading below our estimate of fair value ($52.43)

Significantly Below Fair Value: CONN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CONN is good value based on its PE Ratio (4.2x) compared to the Specialty Retail industry average (12.6x).

PE vs Market: CONN is good value based on its PE Ratio (4.2x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: CONN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CONN is good value based on its PB Ratio (0.4x) compared to the US Specialty Retail industry average (1x).


Next Steps

Future Growth

How is Conn's forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-74.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CONN's earnings are forecast to decline over the next 3 years (-74.9% per year).

Earnings vs Market: CONN's earnings are forecast to decline over the next 3 years (-74.9% per year).

High Growth Earnings: CONN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CONN's revenue is expected to decline over the next 3 years (-6% per year).

High Growth Revenue: CONN's revenue is forecast to decline over the next 3 years (-6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CONN's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has Conn's performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CONN has high quality earnings.

Growing Profit Margin: CONN's current net profit margins (3.6%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: CONN's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: CONN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CONN had negative earnings growth (-24.2%) over the past year, making it difficult to compare to the Specialty Retail industry average (-3.4%).


Return on Equity

High ROE: CONN's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is Conn's's financial position?


Financial Position Analysis

Short Term Liabilities: CONN's short term assets ($1.1B) exceed its short term liabilities ($162.3M).

Long Term Liabilities: CONN's short term assets ($1.1B) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: CONN's debt to equity ratio (162.8%) is considered high.

Reducing Debt: CONN's debt to equity ratio has increased from 118.1% to 162.8% over the past 5 years.

Debt Coverage: CONN's debt is not well covered by operating cash flow (7.8%).

Interest Coverage: Insufficient data to determine if CONN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Conn's's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CONN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CONN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CONN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CONN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CONN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Norm Miller (58yo)

4.67yrs

Tenure

US$1,043,158

Compensation

Mr. Norman L. Miller, also known as Norm, has been the Chief Executive Officer and President of Conn’s Inc. since September 7, 2015. Mr. Miller served as the President and Chief Operating Officer of Retail ...


CEO Compensation Analysis

Compensation vs Market: Norm's total compensation ($USD1.04M) is about average for companies of similar size in the US market ($USD1.42M).

Compensation vs Earnings: Norm's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Norman Miller
Chairman of the Board4.67yrsUS$1.04m1.59% $3.6m
George Bchara
Executive VP & CFO0.92yrUS$697.46k0.17% $376.1k
Lee Wright
Executive VP & COO0.92yrUS$1.35m0.39% $890.0k
Rodney Lastinger
President of Retail0.92yrUS$875.71kno data
Ryan Nelson
Vice President & Chief Accounting Officer1yrno data0.039% $88.1k
Todd Renaud
VP & Chief Information Officer5.75yrsUS$567.92k0.12% $273.5k
Mark Prior
VP, General Counsel & Corporate Secretary3.83yrsUS$1.10m0.13% $294.1k
Eddie Combs
VP & Chief Marketing Officer2yrsUS$984.29k0.0073% $16.6k
Brian Daly
VP & Chief Human Resources Officer4.5yrsUS$814.07k0.17% $383.2k

2.0yrs

Average Tenure

48yo

Average Age

Experienced Management: CONN's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Norman Miller
Chairman of the Board4.67yrsUS$1.04m1.59% $3.6m
Sue Gove
Independent Director0.17yrno datano data
Bobby Martin
Lead Independent Director7.75yrsUS$242.36k0.35% $796.1k
William Schofman
Independent Director8yrsUS$180.00k0.075% $170.5k
Kelly Malson
Independent Director7.75yrsUS$180.00k0.098% $221.1k
James Haworth
Independent Director4.17yrsUS$180.00k0.038% $85.6k
Douglas Martin
Director17.25yrsUS$180.00k0.68% $1.5m
Oded Shein
Independent Director4.17yrsUS$200.00k0.066% $149.1k
William Saunders
Independent Director5.75yrsUS$195.00k0.13% $303.6k

5.8yrs

Average Tenure

57yo

Average Age

Experienced Board: CONN's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CONN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Conn's, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Conn's, Inc.
  • Ticker: CONN
  • Exchange: NasdaqGS
  • Founded: 1890
  • Industry: Computer and Electronics Retail
  • Sector: Retail
  • Market Cap: US$225.966m
  • Shares outstanding: 29.01m
  • Website: https://www.conns.com

Number of Employees


Location

  • Conn's, Inc.
  • 2445 Technology Forest Boulevard
  • Suite 800
  • The Woodlands
  • Texas
  • 77381
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CONNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2003
CN4DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2003

Biography

Conn's, Inc. operates as a specialty retailer of durable consumer goods and related services in the United States. It operates through two segments, Retail and Credit. The company’s stores offer furniture and mattress, including furniture and related accessories for the living room, dining room, and bedroom, as well as traditional and specialty mattresses; and home appliances, such as refrigerators, freezers, washers, dryers, dishwashers, and ranges. Its stores also provide consumer electronics comprising LED, OLED, QLED, 4K Ultra HD, smart televisions, gaming products, and home theater and portable audio equipment; and home office products that include computers, printers, and accessories. In addition, the company offers short- and medium-term financing to its retail customers; and product support services, which comprise next-day delivery and installation services, credit insurance products, product repair services, and repair service agreements. As of April 14, 2020, it operated approximately 139 retail locations in Alabama, Arizona, Colorado, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. The company was founded in 1890 and is based in The Woodlands, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 02:51
End of Day Share Price2020/05/27 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.