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. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: CONN's weekly volatility has decreased from 15% to 10% over the past year.


Market Performance


7 Day Return

10.8%

CONN

2.0%

US Specialty Retail

-1.0%

US Market


1 Year Return

38.9%

CONN

33.6%

US Specialty Retail

19.6%

US Market

Return vs Industry: CONN exceeded the US Specialty Retail industry which returned 33.9% over the past year.

Return vs Market: CONN exceeded the US Market which returned 19.6% over the past year.


Shareholder returns

CONNIndustryMarket
7 Day10.8%2.0%-1.0%
30 Day16.8%6.4%2.2%
90 Day18.1%13.0%11.5%
1 Year38.9%38.9%34.9%33.6%22.3%19.6%
3 Year-59.4%-59.4%73.9%66.6%45.3%35.7%
5 Year-0.6%-0.6%115.6%99.5%124.8%99.8%

Long-Term 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 ($14.41) is trading below our estimate of fair value ($380.24)

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


Price To Earnings Ratio

PE vs Industry: CONN is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.

PE vs Market: CONN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CONN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CONN is good value based on its PB Ratio (0.8x) compared to the US Specialty Retail industry average (2.8x).


Next Steps

Future Growth

How is Conn's forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

130.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CONN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CONN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CONN's is expected to become profitable in the next 3 years.

Revenue vs Market: CONN's revenue (5.4% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: CONN's revenue (5.4% per year) is forecast to grow slower than 20% 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 (6.7%).


Next Steps

Past Performance

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

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CONN is currently unprofitable.

Growing Profit Margin: CONN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CONN is unprofitable, but has reduced losses over the past 5 years at a rate of 17% per year.

Accelerating Growth: Unable to compare CONN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CONN is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (15.3%).


Return on Equity

High ROE: CONN has a negative Return on Equity (-4.39%), as it is currently unprofitable.


Next Steps

Financial Health

How is Conn's's financial position?


Financial Position Analysis

Short Term Liabilities: CONN's short term assets ($969.2M) exceed its short term liabilities ($216.8M).

Long Term Liabilities: CONN's short term assets ($969.2M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: CONN's debt to equity ratio (150.6%) is considered high.

Reducing Debt: CONN's debt to equity ratio has reduced from 183.4% to 150.6% over the past 5 years.

Debt Coverage: CONN's debt is well covered by operating cash flow (46.9%).

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 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?

2.7yrs

Average management tenure


CEO

Norm Miller (59 yo)

5.33yrs

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 ($USD1.04M) is below average for companies of similar size in the US market ($USD1.66M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Norman Miller
Chairman of the Board5.33yrsUS$1.04m1.62%
$ 6.8m
George Bchara
Executive VP & CFO1.58yrsUS$697.46k0.18%
$ 752.0k
Lee Wright
Executive VP & COO1.58yrsUS$1.35m0.43%
$ 1.8m
Rodney Lastinger
President of Retail1.58yrsUS$875.71k0.020%
$ 83.3k
Ryan Nelson
Vice President & Chief Accounting Officer1.67yrsno data0.038%
$ 159.2k
Todd Renaud
VP & Chief Information Officer6.42yrsUS$567.92k0.12%
$ 496.6k
Mark Prior
VP, General Counsel & Corporate Secretary4.5yrsUS$1.10m0.14%
$ 605.8k
Eddie Combs
VP & Chief Marketing Officer2.67yrsUS$984.29k0.015%
$ 61.5k
Brian Daly
VP & Chief Human Resources Officer5.17yrsUS$814.07k0.14%
$ 590.4k

2.7yrs

Average Tenure

49yo

Average Age

Experienced Management: CONN's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Norman Miller
Chairman of the Board5.33yrsUS$1.04m1.62%
$ 6.8m
Sue Gove
Independent Director0.83yrno datano data
Bobby Martin
Lead Independent Director8.42yrsUS$242.36k0.35%
$ 1.5m
William Schofman
Independent Director8.67yrsUS$180.00k0.090%
$ 377.6k
James Haworth
Independent Director4.83yrsUS$180.00k0.038%
$ 158.3k
Douglas Martin
Director17.92yrsUS$180.00k0.21%
$ 881.6k
Oded Shein
Independent Director4.83yrsUS$200.00k0.066%
$ 275.8k
William Saunders
Independent Director6.42yrsUS$195.00k0.13%
$ 561.6k

5.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: CONN's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CONN insiders have only sold shares 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$420.818m
  • Shares outstanding: 29.20m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 23:24
End of Day Share Price2021/01/15 00:00
Earnings2020/10/31
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.