Conn's, Inc. operates as a specialty retailer of durable consumer goods and related services in the United States. It operates through Retail and Credit segments. The companys stores provide home appliances comprising refrigerators, freezers, washers, dryers, dishwashers, and ranges; furniture and mattress, including furniture and related accessories for the living room, dining room, and bedroom, as well as traditional and specialty mattresses; and home office products consisting of computers, tablets, printers, and accessories. The company was founded in 1890 and is based in The Woodlands, Texas.
CONN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Conns Inc. To summarize, we found that Conns Inc ranked in the 6th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 96.67%. The most interesting components of our discounted cash flow analysis for Conns Inc ended up being:
The company has produced more trailing twelve month cash flow than merely 4.58% of its sector Consumer Cyclical.
7% of the company's capital comes from equity, which is greater than only 4.25% of stocks in our cash flow based forecasting set.
Conns Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 15.13% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CONN, try CTHR, CULP, CRMT, EVC, and FND.