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Conns Inc – Household Appliance Stores
Conn's HomePlus is a specialty retailer currently operating 150+ retail locations in Alabama, Arizona, Colorado, Florida, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia.
Analysis Results
Intrinsic Value $27.65
Latest Price $7.92
Relative Value 71% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -14.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -14.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 58.1 54.6
2024 49.8 43.8
2025 42.6 35.2
2026 36.4 28.3
2027 31.2 22.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 697 million. This corresponds to a present value of 476 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 185 million. Adding in the terminal value gives a total present value of 661 million.

There are presently 23.9 million outstanding shares, so the intrinsic value per share is 27.65.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 820,806,000
Current Cash 7,707,000
Current Liabilities 258,416,000
Current Debt 889,000
Non-Cash Working Capital (NCWC) 555,572,000
Change in NCWC -67,966,000
EBIT 171,370,000
Tax Provision 33,512,000
Depreciation and Amortization 45,450,000
Capital Expenditure -44,859,000
Unlevered Free Cash Flow 63,470,917
Current Assets 844,063,000
Current Cash 9,703,000
Current Liabilities 211,756,000
Current Debt 934,000
Non-Cash Working Capital (NCWC) 623,538,000
Change in NCWC -268,178,000
EBIT 36,940,000
Tax Provision -16,190,000
Depreciation and Amortization 41,068,000
Capital Expenditure -55,927,000
Unlevered Free Cash Flow -246,097,000
Current Assets 1,058,866,000
Current Cash 5,485,000
Current Liabilities 162,270,000
Current Debt 605,000
Non-Cash Working Capital (NCWC) 891,716,000
Change in NCWC 66,693,000
EBIT 137,661,000
Tax Provision 18,314,000
Depreciation and Amortization 36,841,000
Capital Expenditure -57,546,000
Unlevered Free Cash Flow 149,725,541
Current Assets 1,014,394,000
Current Cash 5,912,000
Current Liabilities 237,568,000
Current Debt 54,109,000
Non-Cash Working Capital (NCWC) 825,023,000
Change in NCWC -82,504,000
EBIT 169,035,000
Tax Provision 22,929,000
Depreciation and Amortization 31,584,000
Capital Expenditure -32,814,000
Unlevered Free Cash Flow 45,252,605
Current Assets 1,080,017,000
Current Cash 9,286,000
Current Liabilities 164,111,000
Current Debt 907,000
Non-Cash Working Capital (NCWC) 907,527,000
Change in NCWC 9,952,000
EBIT 128,399,000
Tax Provision 25,171,000
Depreciation and Amortization 30,806,000
Capital Expenditure -16,918,000
Unlevered Free Cash Flow 50,072,621
Current Assets 1,087,673,000
Current Cash 23,566,000
Current Liabilities 167,381,000
Current Debt 849,000
Non-Cash Working Capital (NCWC) 897,575,000
Change in NCWC -107,845,000
EBIT 70,576,000
Tax Provision -8,955,000
Depreciation and Amortization 28,846,000
Capital Expenditure -46,556,000
Unlevered Free Cash Flow -54,979,000
Current Assets 1,163,000,000
Current Cash 12,254,000
Current Liabilities 146,125,000
Current Debt 799,000
Non-Cash Working Capital (NCWC) 1,005,420,000
Change in NCWC 236,542,000
EBIT 121,760,000
Tax Provision 18,388,000
Depreciation and Amortization 22,706,000
Capital Expenditure -63,405,000
Unlevered Free Cash Flow 272,136,174
Current Assets 925,715,000
Current Cash 12,223,000
Current Liabilities 145,009,000
Current Debt 395,000
Non-Cash Working Capital (NCWC) 768,878,000
Change in NCWC 181,197,000
EBIT 125,557,000
Tax Provision 31,989,000
Depreciation and Amortization 21,604,000
Capital Expenditure -61,696,000
Unlevered Free Cash Flow 222,282,396
Current Assets 735,595,000
Current Cash 5,727,000
Current Liabilities 142,607,000
Current Debt 420,000
Non-Cash Working Capital (NCWC) 587,681,000
Change in NCWC 181,923,000
EBIT 163,969,000
Tax Provision 53,070,000
Depreciation and Amortization 16,817,000
Capital Expenditure -52,127,000
Unlevered Free Cash Flow 251,191,512
Current Assets 528,244,000
Current Cash 3,849,000
Current Liabilities 151,163,000
Current Debt 32,526,000
Non-Cash Working Capital (NCWC) 405,758,000
Change in NCWC 53,413,000
EBIT 103,537,000
Tax Provision 30,109,000
Depreciation and Amortization 13,891,000
Capital Expenditure -32,353,000
Unlevered Free Cash Flow 100,802,339

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