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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.01
CONN's Cash to Debt is ranked lower than
61% of the 1125 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.22 vs. CONN: 0.01 )
CONN' s 10-Year Cash to Debt Range
Min: 0.01   Max: No Debt
Current: 0.01

Equity to Asset 0.46
CONN's Equity to Asset is ranked higher than
64% of the 1116 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.50 vs. CONN: 0.46 )
CONN' s 10-Year Equity to Asset Range
Min: 0.39   Max: 0.8
Current: 0.46

0.39
0.8
Interest Coverage 10.56
CONN's Interest Coverage is ranked higher than
57% of the 773 Companies
in the Global Specialty Retail industry.

( Industry Median: 34.51 vs. CONN: 10.56 )
CONN' s 10-Year Interest Coverage Range
Min: 1.02   Max: 9999.99
Current: 10.56

1.02
9999.99
F-Score: 4
Z-Score: 3.46
M-Score: -0.91
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 13.56
CONN's Operating margin (%) is ranked higher than
91% of the 1117 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.32 vs. CONN: 13.56 )
CONN' s 10-Year Operating margin (%) Range
Min: 2.13   Max: 13.56
Current: 13.56

2.13
13.56
Net-margin (%) 7.83
CONN's Net-margin (%) is ranked higher than
87% of the 1114 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.52 vs. CONN: 7.83 )
CONN' s 10-Year Net-margin (%) Range
Min: -0.47   Max: 7.83
Current: 7.83

-0.47
7.83
ROE (%) 15.86
CONN's ROE (%) is ranked higher than
87% of the 1097 Companies
in the Global Specialty Retail industry.

( Industry Median: 9.14 vs. CONN: 15.86 )
CONN' s 10-Year ROE (%) Range
Min: -1.05   Max: 25.06
Current: 15.86

-1.05
25.06
ROA (%) 7.20
CONN's ROA (%) is ranked higher than
84% of the 1115 Companies
in the Global Specialty Retail industry.

( Industry Median: 4.34 vs. CONN: 7.20 )
CONN' s 10-Year ROA (%) Range
Min: -0.48   Max: 13.44
Current: 7.2

-0.48
13.44
ROC (Joel Greenblatt) (%) 24.00
CONN's ROC (Joel Greenblatt) (%) is ranked higher than
77% of the 1114 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.04 vs. CONN: 24.00 )
CONN' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 4.91   Max: 33.63
Current: 24

4.91
33.63
Revenue Growth (%) 2.20
CONN's Revenue Growth (%) is ranked higher than
66% of the 997 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.30 vs. CONN: 2.20 )
CONN' s 10-Year Revenue Growth (%) Range
Min: -14.3   Max: 13.2
Current: 2.2

-14.3
13.2
EBITDA Growth (%) 40.50
CONN's EBITDA Growth (%) is ranked higher than
97% of the 820 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.10 vs. CONN: 40.50 )
CONN' s 10-Year EBITDA Growth (%) Range
Min: -26   Max: 40.5
Current: 40.5

-26
40.5
» CONN's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

CONN Guru Trades in Q3 2013

Paul Tudor Jones 4,800 sh (New)
Steven Cohen 242,219 sh (+249.52%)
Louis Moore Bacon 194,413 sh (+116.19%)
Louis Moore Bacon 50,000 sh (unchged)
Pioneer Investments Sold Out
» More
Q4 2013

CONN Guru Trades in Q4 2013

Jim Simons 137,668 sh (New)
Paul Tudor Jones 5,739 sh (+19.56%)
Louis Moore Bacon 151,260 sh (-22.2%)
Steven Cohen 142,500 sh (-41.17%)
» More
Q1 2014

CONN Guru Trades in Q1 2014

Jean-Marie Eveillard 6,000 sh (New)
David Einhorn 3,300,000 sh (New)
Paul Tudor Jones 13,884 sh (+141.92%)
Louis Moore Bacon 121,000 sh (unchged)
Louis Moore Bacon Sold Out
Steven Cohen Sold Out
Jim Simons 121,268 sh (-11.91%)
» More
Q2 2014

CONN Guru Trades in Q2 2014

David Einhorn 3,500,000 sh (+6.06%)
Paul Tudor Jones Sold Out
Jim Simons Sold Out
Jean-Marie Eveillard Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with CONN

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Jean-Marie Eveillard 2014-06-30 Sold Out $38.59 - $49.87 $ 43.73-1%0
Jean-Marie Eveillard 2014-03-31 New Buy$31.55 - $78.69 $ 43.73-16%6000
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Conn's Inc

David Einhorn Comments on Conn's - Apr 23, 2014

CONN (CONN) is a specialty retailer of appliances, furniture, mattresses and electronics with 79 locationsin Texas and the Southwest. CONN finances 77% of customer purchases through its proprietarysubprime credit portfolio. In February, the company announced 33% comparable store salesgrowth in Q4 with strong gross margins. However, it also announced increased credit losses andreduced earnings guidance from a range of $3.80-$4.00 to a range of $3.40-$3.70 for calendar2014. Given the market’s past experience with deterioration in subprime credit, the stockreaction was severe: The price fell from $79 at the start of the year to $32 on the news. We believe that this is a retailer with 15-20% unit growth and current double digit comparable storesales growth, and that the market overreacted to moderately bad news. We acquired shares at anaverage price of $35.49 and they ended the quarter at $38.85.

From David Einhorn (Trades, Portfolio)'s first quarter 2014 investor letter.

Check out David Einhorn latest stock trades

Top Ranked Articles about Conn's Inc

David Einhorn Comments on Conn's
CONN (CONN) is a specialty retailer of appliances, furniture, mattresses and electronics with 79 locationsin Texas and the Southwest. CONN finances 77% of customer purchases through its proprietarysubprime credit portfolio. In February, the company announced 33% comparable store salesgrowth in Q4 with strong gross margins. However, it also announced increased credit losses andreduced earnings guidance from a range of $3.80-$4.00 to a range of $3.40-$3.70 for calendar2014. Given the market’s past experience with deterioration in subprime credit, the stockreaction was severe: The price fell from $79 at the start of the year to $32 on the news. We believe that this is a retailer with 15-20% unit growth and current double digit comparable storesales growth, and that the market overreacted to moderately bad news. We acquired shares at anaverage price of $35.49 and they ended the quarter at $38.85. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 16.00
CONN's P/E(ttm) is ranked higher than
78% of the 1174 Companies
in the Global Specialty Retail industry.

( Industry Median: 22.30 vs. CONN: 16.00 )
CONN' s 10-Year P/E(ttm) Range
Min: 5.18   Max: 517.78
Current: 16

5.18
517.78
P/B 2.50
CONN's P/B is ranked higher than
53% of the 1174 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.92 vs. CONN: 2.50 )
CONN' s 10-Year P/B Range
Min: 0.22   Max: 4.99
Current: 2.5

0.22
4.99
P/S 1.20
CONN's P/S is ranked lower than
55% of the 1174 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.79 vs. CONN: 1.20 )
CONN' s 10-Year P/S Range
Min: 0.1   Max: 2.61
Current: 1.2

0.1
2.61
EV-to-EBIT 12.29
CONN's EV-to-EBIT is ranked higher than
79% of the 1174 Companies
in the Global Specialty Retail industry.

( Industry Median: 16.01 vs. CONN: 12.29 )
CONN' s 10-Year EV-to-EBIT Range
Min: 3.1   Max: 48.7
Current: 12.29

3.1
48.7
PEG 0.45
CONN's PEG is ranked higher than
97% of the 1174 Companies
in the Global Specialty Retail industry.

( Industry Median: 9999.00 vs. CONN: 0.45 )
CONN' s 10-Year PEG Range
Min: 0.49   Max: 8.13
Current: 0.45

0.49
8.13
Shiller P/E 44.80
CONN's Shiller P/E is ranked higher than
65% of the 1174 Companies
in the Global Specialty Retail industry.

( Industry Median: 9999.00 vs. CONN: 44.80 )
CONN' s 10-Year Shiller P/E Range
Min: 2.76   Max: 88.2
Current: 44.8

2.76
88.2
Current Ratio 4.04
CONN's Current Ratio is ranked higher than
94% of the 672 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.63 vs. CONN: 4.04 )
CONN' s 10-Year Current Ratio Range
Min: 2.14   Max: 5.23
Current: 4.04

2.14
5.23
Quick Ratio 3.33
CONN's Quick Ratio is ranked higher than
96% of the 672 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.86 vs. CONN: 3.33 )
CONN' s 10-Year Quick Ratio Range
Min: 1.4   Max: 4.34
Current: 3.33

1.4
4.34

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.58
CONN's Price/Tangible Book is ranked higher than
59% of the 1174 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.80 vs. CONN: 2.58 )
CONN' s 10-Year Price/Tangible Book Range
Min: 0.29   Max: 4.36
Current: 2.58

0.29
4.36
Price/Median PS Value 1.94
CONN's Price/Median PS Value is ranked lower than
63% of the 1174 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.10 vs. CONN: 1.94 )
CONN' s 10-Year Price/Median PS Value Range
Min: 0.2   Max: 3.57
Current: 1.94

0.2
3.57
Price/Peter Lynch Fair Value 0.66
CONN's Price/Peter Lynch Fair Value is ranked higher than
95% of the 1174 Companies
in the Global Specialty Retail industry.

( Industry Median: 9999.00 vs. CONN: 0.66 )
CONN' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.48   Max: 4.57
Current: 0.66

0.48
4.57
Price/Graham Number 1.36
CONN's Price/Graham Number is ranked higher than
71% of the 1174 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.10 vs. CONN: 1.36 )
CONN' s 10-Year Price/Graham Number Range
Min: 0.38   Max: 3.3
Current: 1.36

0.38
3.3
Earnings Yield (Greenblatt) 8.40
CONN's Earnings Yield (Greenblatt) is ranked higher than
70% of the 1043 Companies
in the Global Specialty Retail industry.

( Industry Median: 7.20 vs. CONN: 8.40 )
CONN' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.1   Max: 31.8
Current: 8.4

2.1
31.8
Forward Rate of Return (Yacktman) 27.75
CONN's Forward Rate of Return (Yacktman) is ranked higher than
94% of the 853 Companies
in the Global Specialty Retail industry.

( Industry Median: 8.58 vs. CONN: 27.75 )
CONN' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -36.5   Max: 27.7
Current: 27.75

-36.5
27.7

Business Description

Industry: Retail - Apparel & Specialty » Specialty Retail
Compare:TSCO, AMZN, EBAY, FIVE, AZO » details
Traded in other countries:CN4.Germany
Conn's, Inc., is incorporated in Delaware. The Company is a specialty retailer that offers that offers durable consumer goods and related services. Its complementary product offerings include home appliances, furniture and mattresses, consumer electronics and home office products. Its credit offering provides financing solutions to a, population of credit constrained consumers who typically have credit scores between 550 and 650. The Company's reportable segments: retail and credit. The retail product categories include Home appliance, which includes refrigerators, freezers, washers, dryers, dishwashers, ranges and room air conditioners. The Company represents brands such as Dyson, Electrolux, Eureka, Friedrich, General Electric, Haier, LG and Samsung. Furniture and mattress, which includes furniture and related accessories for the living room, dining room and bedroom as well as both traditional and specialty mattresses. It represents brands such as Bello, Elements, Franklin, Home Stretch, Jackson-Catnapper, Klaussner, Sealy, Serta, Steve Silver and Z-Line; Consumer electronic, which includes LCD, LED, 3-D and plasma televisions, Blu-ray players, home theater and video game products, camcorders, digital cameras, and portable audio equipment. It represents brands such as Bose, Canon, Haier, Harmon/Kardon, LG, Microsoft, Monster, Nikon, Nintendo, Samsung, Sharp, Sony and Toshiba; and Home office, which include computers, tablets, printers and accessories. It represents brands such as Acer, Asus, Dell, Hewlett-Packard, Microsoft, Samsung, Sony and Toshiba. As of January 31, 2013, the Company operated 68 retail stores located in five states namely Texas (58), Louisiana (6), Oklahoma (2), New Mexico (1) and Arizona (1). The Company offers customer service through its commissioned and trained sales force as well as next day delivery and installation, and product repair or replacement services for its items sold in its stores. Flexible payment alternatives offered through its proprietary in-house credit program and third-party financing alternatives enable its customers to finance their purchases. The Credit segment offers consumer credit to its credit-worthy customers. The credit segment is provides short and medium-term financing for its customers. The Company provides access to multiple financing options to address various customer needs including a proprietary in-house credit program, a third-party financing program and a third-party rent-to-own payment program. Its credit customers uses its in-house credit program and typically have a credit score of between 550 and 650, with an average score of applicants for the twelve months ended January 31, 2013 of 614. For customers who do not qualify for its in-house program, it provide access to rent-to-own payment plans offered by RAC Acceptance. For customers with higher credit scores, it have partnered with GE Capital to offer long-term, no interest and revolving credit plan. In addition
» More Articles for CONN

Headlines

Articles On GuruFocus.com
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User Comments

Erick
ReplyErick - 3 months ago
Berryaf25,
very intestine i caught that too
Berryaf25
ReplyBerryaf25 - 3 months ago
David Einhorn (Trades, Portfolio) disclosed a purchase in his latest shareholder letter. However, this isn't reflected in the guru trades.

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