Conn's (CONNQ) AI Stock Analysis

• Market Cap: $2.49K
• Dividend Yield: N/A
• Average Volume (3M): 39.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 293.52
• Revenue Growth: -7.81%
• EPS Growth: -28.42%
• Country: US
• Employees: 4,650
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Retail - Discretionary
• EPS (TTM): -3.22
• Shares Outstanding: 24,901,340
• 10 Day Avg. Volume: 93,022
• 30 Day Avg. Volume: 39,814
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 34 Underperform
• Price Target: ―

Conn's is facing significant financial distress, reflected in declining revenues, high leverage, and negative cash flows. The absence of a clear technical trend and valuation concerns, coupled with a lack of positive communication from the earnings call, contribute to a low overall stock score. These factors highlight considerable operational and financial risks.

Conn's Business Overview & Revenue Model

Company Description

Conn's, Inc. is a holding company, which engages in the retail and provision of consumer goods and related services. It also offers proprietary credit solutions for its core credit-constrained consumers through retail stores and its website. The firm operates through the Retail and Credit segments. The Retail segment sells home appliances to the retail market; and owns and operates retail stores that offer furniture, home appliances, consumer electronics, and home office accessories. The Credit segment provides in-house consumer credit programs that offer standardized credit decisions, including down payment, limit amounts, and credit terms. The company was founded by Edward Eastham in 1890 and is headquartered in The Woodlands, TX.

How the Company Makes Money

Conn's makes money primarily through the sale of consumer electronics, home appliances, furniture, and mattresses. The company generates revenue from both its brick-and-mortar retail locations and its e-commerce platform. In addition to direct product sales, Conn's offers in-house financing solutions to customers, which provide an additional revenue stream through interest and fees associated with these credit offerings. This financing arm is a significant contributor to the company's earnings, as it allows Conn's to cater to a broader customer base, including those who may not have access to traditional credit options.

Conn's Financial Statement Overview

Summary

Conn's financial health is under pressure, characterized by declining revenues and profitability, high leverage, and weak cash flows. The company faces significant challenges in improving operational efficiency and managing debt levels to stabilize its financial position and ensure long-term viability.

Income Statement

Conn's has experienced declining revenue and profitability over recent years. The gross profit margin decreased from 54.2% in 2020 to 49.1% in 2024, and the net income turned negative, with a net profit margin of -6.2% in 2024. The negative EBIT and EBITDA margins in the latest year indicate operational challenges.

Balance Sheet

Conn's balance sheet reflects high leverage, with a debt-to-equity ratio of 4.76 in 2024, indicating significant reliance on debt financing. The stockholders' equity has decreased over the past years, reflecting potential solvency concerns. The equity ratio stands at 17.8%, suggesting low equity compared to total assets.

Cash Flow

The cash flow situation is concerning, with negative free cash flow in 2024 and a declining operating cash flow. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash flow. Free cash flow growth has been negative, reflecting a potential liquidity risk.

Breakdown
Jan 2024	Jan 2023	Jan 2022	Jan 2021	Jan 2020
Income Statement		Total Revenue
―	―	―	―	―
	Gross Profit
608.00M	632.29M	764.04M	717.71M	845.90M
	EBIT
-125.28M	-29.47M	168.69M	30.61M	134.52M
	EBITDA
55.29M	56.66M	248.11M	72.12M	180.05M
	Net Income Common Stockholders
-76.89M	-59.29M	108.20M	-3.14M	56.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
―	―	―	―	―
	Total Assets
2.44B	1.72B	1.75B	1.76B	2.17B
	Total Debt
2.07B	1.02B	908.01M	1.01B	1.39B
	Net Debt
2.05B	1.00B	900.30M	998.48M	1.39B
	Total Liabilities
1.95B	1.21B	1.14B	1.20B	1.54B
	Stockholders Equity
―	―	―	―	―
Cash Flow		Free Cash Flow
-102.29M	-12.52M	131.54M	406.19M	23.24M
	Operating Cash Flow
-51.23M	60.45M	176.40M	462.12M	80.07M
	Investing Cash Flow
―	―	―	―	―
	Financing Cash Flow
―	―	―	―	―

Conn's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
SPWH	57 Neutral	$141.39M	―	-15.67%	―	-4.92%	-13.73%
PRTS	48 Neutral	$49.81M	―	-54.32%	―	-14.49%	-210.54%
TLYS	44 Neutral	$36.79M	―	-47.54%	―	-8.79%	-15.17%
KIRK	41 Neutral	$28.08M	―	77.02%	―	-5.83%	18.04%
PLCE	40 Underperform	$89.47M	―	-521.67%	―	-12.15%	75.86%
CONNQ	34 Underperform	$2.49K	―	-17.67%	―	-7.81%	-28.42%