CONTINENTAL AG (1CON.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1CON - DE0005439004 - Common Stock
68.92 EUR
+1.24 (+1.83%)
We assign a fundamental rating of 4 out of 10 to 1CON. 1CON was compared to 31 industry peers in the Automobile Components industry. There are concerns on the financial health of 1CON while its profitability can be described as average. 1CON has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- 1CON had positive earnings in the past year.
- In the past year 1CON had a positive cash flow from operations.
- 1CON had positive earnings in 4 of the past 5 years.
- 1CON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 1.33%, 1CON is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- The Return On Equity of 1CON (6.35%) is better than 65.63% of its industry peers.
- 1CON's Return On Invested Capital of 5.91% is in line compared to the rest of the industry. 1CON outperforms 59.38% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1CON is in line with the industry average of 6.49%.
- The 3 year average ROIC (5.66%) for 1CON is below the current ROIC(5.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.33% | ||
| ROE | 6.35% | ||
| ROIC | 5.91% |
ROA(3y)2.13%
ROA(5y)1.6%
ROE(3y)5.7%
ROE(5y)4.2%
ROIC(3y)5.66%
ROIC(5y)5.08%
1.3 Margins
- The Profit Margin of 1CON (1.00%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of 1CON has declined.
- With a Operating Margin value of 3.70%, 1CON is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
- 1CON's Operating Margin has been stable in the last couple of years.
- The Gross Margin of 1CON (24.91%) is comparable to the rest of the industry.
- 1CON's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.7% | ||
| PM (TTM) | 1% | ||
| GM | 24.91% |
OM growth 3Y5.04%
OM growth 5Y-0.61%
PM growth 3Y-11.56%
PM growth 5YN/A
GM growth 3Y-1.13%
GM growth 5Y-1.42%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1CON is destroying value.
- Compared to 1 year ago, 1CON has about the same amount of shares outstanding.
- The number of shares outstanding for 1CON remains at a similar level compared to 5 years ago.
- 1CON has a better debt/assets ratio than last year.
2.2 Solvency
- 1CON has an Altman-Z score of 2.46. This is not the best score and indicates that 1CON is in the grey zone with still only limited risk for bankruptcy at the moment.
- 1CON has a better Altman-Z score (2.46) than 81.25% of its industry peers.
- A Debt/Equity ratio of 1.32 is on the high side and indicates that 1CON has dependencies on debt financing.
- 1CON has a Debt to Equity ratio of 1.32. This is in the lower half of the industry: 1CON underperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.46 |
ROIC/WACC0.97
WACC6.08%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that 1CON should not have too much problems paying its short term obligations.
- 1CON has a Current ratio (1.32) which is comparable to the rest of the industry.
- A Quick Ratio of 0.90 indicates that 1CON may have some problems paying its short term obligations.
- 1CON's Quick ratio of 0.90 is fine compared to the rest of the industry. 1CON outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- 1CON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.50%, which is quite impressive.
- Measured over the past years, 1CON shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.04% on average per year.
- Looking at the last year, 1CON shows a very negative growth in Revenue. The Revenue has decreased by -38.10% in the last year.
- The Revenue has been decreasing by -2.24% on average over the past years.
EPS 1Y (TTM)40.5%
EPS 3Y-6.61%
EPS 5Y-6.04%
EPS Q2Q%17.11%
Revenue 1Y (TTM)-38.1%
Revenue growth 3Y5.56%
Revenue growth 5Y-2.24%
Sales Q2Q%-49.66%
3.2 Future
- The Earnings Per Share is expected to grow by 0.30% on average over the next years.
- The Revenue is expected to decrease by -11.90% on average over the next years. This is quite bad
EPS Next Y-56.37%
EPS Next 2Y-4.91%
EPS Next 3Y-0.01%
EPS Next 5Y0.3%
Revenue Next Year-40.96%
Revenue Next 2Y-22.33%
Revenue Next 3Y-14.21%
Revenue Next 5Y-11.9%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 6.01, the valuation of 1CON can be described as very cheap.
- Based on the Price/Earnings ratio, 1CON is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of 1CON to the average of the S&P500 Index (28.60), we can say 1CON is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.70 indicates a reasonable valuation of 1CON.
- 65.63% of the companies in the same industry are more expensive than 1CON, based on the Price/Forward Earnings ratio.
- 1CON's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.01 | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
- 1CON's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1CON is more expensive than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-4.91%
EPS Next 3Y-0.01%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.78%, 1CON has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.91, 1CON pays a bit more dividend than its industry peers.
- 1CON's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
- The dividend of 1CON decreases each year by -14.27%.
Dividend Growth(5Y)-14.27%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1CON pays out 201.61% of its income as dividend. This is not a sustainable payout ratio.
DP201.61%
EPS Next 2Y-4.91%
EPS Next 3Y-0.01%
CONTINENTAL AG / 1CON.MI FAQ
What is the fundamental rating for 1CON stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1CON.MI.
What is the valuation status of CONTINENTAL AG (1CON.MI) stock?
ChartMill assigns a valuation rating of 4 / 10 to CONTINENTAL AG (1CON.MI). This can be considered as Fairly Valued.
How profitable is CONTINENTAL AG (1CON.MI) stock?
CONTINENTAL AG (1CON.MI) has a profitability rating of 5 / 10.
What is the valuation of CONTINENTAL AG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CONTINENTAL AG (1CON.MI) is 6.01 and the Price/Book (PB) ratio is 3.53.
What is the earnings growth outlook for CONTINENTAL AG?
The Earnings per Share (EPS) of CONTINENTAL AG (1CON.MI) is expected to decline by -56.37% in the next year.