CONN'S INC (CONN) Fundamental Analysis & Valuation

NASDAQ:CONN • US2082421072

0.0975 USD
-0.08 (-46.4%)
At close: Aug 5, 2024
0.072 USD
-0.03 (-26.15%)
After Hours: 8/5/2024, 8:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This CONN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to CONN. CONN was compared to 124 industry peers in the Specialty Retail industry. Both the profitability and financial health of CONN have multiple concerns. CONN is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

1

1. CONN Profitability Analysis

1.1 Basic Checks

  • In the past year CONN has reported negative net income.
  • CONN had a negative operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: CONN reported negative net income in multiple years.
  • CONN had a positive operating cash flow in 4 of the past 5 years.
CONN Yearly Net Income VS EBIT VS OCF VS FCFCONN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M

1.2 Ratios

  • CONN's Return On Assets of -3.15% is on the low side compared to the rest of the industry. CONN is outperformed by 60.00% of its industry peers.
  • Looking at the Return On Equity, with a value of -15.46%, CONN is doing worse than 60.00% of the companies in the same industry.
Industry RankSector Rank
ROA -3.15%
ROE -15.46%
ROIC N/A
ROA(3y)-0.14%
ROA(5y)0.39%
ROE(3y)-3.22%
ROE(5y)-0.26%
ROIC(3y)N/A
ROIC(5y)N/A
CONN Yearly ROA, ROE, ROICCONN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

  • CONN has a better Gross Margin (49.12%) than 76.80% of its industry peers.
  • In the last couple of years the Gross Margin of CONN has declined.
  • CONN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 49.12%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.74%
GM growth 5Y-2.13%
CONN Yearly Profit, Operating, Gross MarginsCONN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

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3

2. CONN Health Analysis

2.1 Basic Checks

  • CONN does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • CONN has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for CONN has been reduced compared to 5 years ago.
  • CONN has a worse debt/assets ratio than last year.
CONN Yearly Shares OutstandingCONN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
CONN Yearly Total Debt VS Total AssetsCONN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

  • Based on the Altman-Z score of 0.99, we must say that CONN is in the distress zone and has some risk of bankruptcy.
  • CONN's Altman-Z score of 0.99 is on the low side compared to the rest of the industry. CONN is outperformed by 76.80% of its industry peers.
  • CONN has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.69, CONN is not doing good in the industry: 64.80% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.69
Debt/FCF N/A
Altman-Z 0.99
ROIC/WACCN/A
WACC5.85%
CONN Yearly LT Debt VS Equity VS FCFCONN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

  • CONN has a Current Ratio of 2.58. This indicates that CONN is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of CONN (2.58) is better than 87.20% of its industry peers.
  • CONN has a Quick Ratio of 1.87. This is a normal value and indicates that CONN is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of CONN (1.87) is better than 88.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.58
Quick Ratio 1.87
CONN Yearly Current Assets VS Current LiabilitesCONN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. CONN Growth Analysis

3.1 Past

  • The earnings per share for CONN have decreased strongly by -175.11% in the last year.
  • The Revenue has decreased by -7.81% in the past year.
  • The Revenue has been decreasing by -4.40% on average over the past years.
EPS 1Y (TTM)-175.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%19.35%
Revenue 1Y (TTM)-7.81%
Revenue growth 3Y-3.7%
Revenue growth 5Y-4.4%
Sales Q2Q%9.31%

3.2 Future

  • CONN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.52% yearly.
  • Based on estimates for the next years, CONN will show a very strong growth in Revenue. The Revenue will grow by 24.38% on average per year.
EPS Next Y81.05%
EPS Next 2Y42.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year47.5%
Revenue Next 2Y24.38%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
CONN Yearly Revenue VS EstimatesCONN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B 2B
CONN Yearly EPS VS EstimatesCONN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2 -4 -6

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1

4. CONN Valuation Analysis

4.1 Price/Earnings Ratio

  • CONN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • Also next year CONN is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
CONN Price Earnings VS Forward Price EarningsCONN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
CONN Per share dataCONN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

4.3 Compensation for Growth

  • A more expensive valuation may be justified as CONN's earnings are expected to grow with 42.52% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y42.52%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CONN Dividend Analysis

5.1 Amount

  • No dividends for CONN!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

CONN Fundamentals: All Metrics, Ratios and Statistics

CONN'S INC

NASDAQ:CONN (8/5/2024, 8:00:00 PM)

After market: 0.072 -0.03 (-26.15%)

0.0975

-0.08 (-46.4%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)06-12
Earnings (Next)08-28
Inst Owners1.19%
Inst Owner Change0%
Ins Owners45.07%
Ins Owner Change0%
Market Cap2.43M
Revenue(TTM)1.24B
Net Income(TTM)-76.90M
Analysts85.71
Price Target5.61 (5653.85%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.19%
Min EPS beat(2)-36.31%
Max EPS beat(2)21.94%
EPS beat(4)2
Avg EPS beat(4)-3.92%
Min EPS beat(4)-36.31%
Max EPS beat(4)21.94%
EPS beat(8)3
Avg EPS beat(8)-9.27%
EPS beat(12)5
Avg EPS beat(12)30.84%
EPS beat(16)9
Avg EPS beat(16)86.41%
Revenue beat(2)0
Avg Revenue beat(2)-11.81%
Min Revenue beat(2)-15.03%
Max Revenue beat(2)-8.59%
Revenue beat(4)0
Avg Revenue beat(4)-8.15%
Min Revenue beat(4)-15.03%
Max Revenue beat(4)-2.36%
Revenue beat(8)0
Avg Revenue beat(8)-6.2%
Revenue beat(12)3
Avg Revenue beat(12)-2.05%
Revenue beat(16)5
Avg Revenue beat(16)-1.52%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-59.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.97%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0
P/FCF N/A
P/OCF N/A
P/B 0
P/tB 0
EV/EBITDA N/A
EPS(TTM)-6.19
EYN/A
EPS(NY)-1.17
Fwd EYN/A
FCF(TTM)-4.11
FCFYN/A
OCF(TTM)-2.06
OCFYN/A
SpS49.73
BVpS19.99
TBVpS19.99
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -3.15%
ROE -15.46%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 49.12%
FCFM N/A
ROA(3y)-0.14%
ROA(5y)0.39%
ROE(3y)-3.22%
ROE(5y)-0.26%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.74%
GM growth 5Y-2.13%
F-Score4
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 1.69
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 101.27%
Cap/Sales 4.12%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.58
Quick Ratio 1.87
Altman-Z 0.99
F-Score4
WACC5.85%
ROIC/WACCN/A
Cap/Depr(3y)119.21%
Cap/Depr(5y)129.98%
Cap/Sales(3y)4.13%
Cap/Sales(5y)4.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-175.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%19.35%
EPS Next Y81.05%
EPS Next 2Y42.52%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.81%
Revenue growth 3Y-3.7%
Revenue growth 5Y-4.4%
Sales Q2Q%9.31%
Revenue Next Year47.5%
Revenue Next 2Y24.38%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-608.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year195.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-711.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-184.82%
OCF growth 3YN/A
OCF growth 5YN/A

CONN'S INC / CONN FAQ

What is the ChartMill fundamental rating of CONN'S INC (CONN) stock?

ChartMill assigns a fundamental rating of 2 / 10 to CONN.


What is the valuation status for CONN stock?

ChartMill assigns a valuation rating of 1 / 10 to CONN'S INC (CONN). This can be considered as Overvalued.


How profitable is CONN'S INC (CONN) stock?

CONN'S INC (CONN) has a profitability rating of 1 / 10.


Can you provide the financial health for CONN stock?

The financial health rating of CONN'S INC (CONN) is 3 / 10.