tiprankstipranks
Trending News
More News >
Conn's (CONNQ)
OTHER OTC:CONNQ

Conn's (CONNQ) AI Stock Analysis

Compare
401 Followers

Top Page

CO

Conn's

(OTC:CONNQ)

Rating:34Underperform
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 (CONNQ) vs. SPDR S&P 500 ETF (SPY)

Conn's Business Overview & Revenue Model

Company DescriptionConn's, Inc. is a specialty retailer that operates in the consumer electronics, home appliances, furniture, and mattress sectors. The company offers a wide range of products, including televisions, refrigerators, furniture sets, mattresses, and more, both through its physical retail stores and an online platform. Conn's primarily serves customers in the United States, with a focus on providing high-quality products and a convenient shopping experience.
How the Company Makes MoneyConn'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
45
Neutral
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
30
Negative
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
20
Very Negative
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 2024Jan 2023Jan 2022Jan 2021Jan 2020
Income StatementTotal Revenue
Gross Profit
608.00M632.29M764.04M717.71M845.90M
EBIT
-125.28M-29.47M168.69M30.61M134.52M
EBITDA
55.29M56.66M248.11M72.12M180.05M
Net Income Common Stockholders
-76.89M-59.29M108.20M-3.14M56.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
Total Assets
2.44B1.72B1.75B1.76B2.17B
Total Debt
2.07B1.02B908.01M1.01B1.39B
Net Debt
2.05B1.00B900.30M998.48M1.39B
Total Liabilities
1.95B1.21B1.14B1.20B1.54B
Stockholders Equity
Cash FlowFree Cash Flow
-102.29M-12.52M131.54M406.19M23.24M
Operating Cash Flow
-51.23M60.45M176.40M462.12M80.07M
Investing Cash Flow
Financing Cash Flow

Conn's Risk Analysis

Conn's disclosed 78 risk factors in its most recent earnings report. Conn's reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Conn's Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
LZLZB
72
Outperform
$1.66B13.8112.40%2.08%1.81%8.09%
69
Neutral
$15.52B30.3144.13%8.29%38.09%
62
Neutral
$6.84B11.412.80%3.87%2.70%-24.58%
54
Neutral
$141.18M-3.83%4.93%-11.78%-13.89%
50
Neutral
$401.49M-36.88%1.38%63.65%
RHRH
49
Neutral
$3.44B51.27-38.18%5.01%-35.45%
46
Neutral
$29.65M77.02%-5.83%18.04%
34
Underperform
$2.49K-17.67%-7.81%-28.42%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CONNQ
Conn's
0.01
-2.79
-99.64%
BSET
Bassett Furniture
15.80
2.55
19.25%
KIRK
Kirkland's
1.25
-0.68
-35.23%
LZB
La-Z-Boy Incorporated
41.22
7.37
21.77%
RH
RH
189.38
-89.23
-32.03%
BURL
Burlington Stores
241.43
12.14
5.29%
BNED
Barnes & Noble Education
11.85
11.76
13066.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.