CONTINENTAL AG (CON.DE) Stock Fundamental Analysis
FRA:CON - Deutsche Boerse Ag - DE0005439004 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to CON. CON was compared to 28 industry peers in the Automobile Components industry. CON has an excellent financial health rating, but there are some minor concerns on its profitability. CON has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CON had positive earnings in the past year.
CON had a positive operating cash flow in the past year.
Of the past 5 years CON 4 years were profitable.
CON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.45%, CON is doing good in the industry, outperforming 71.43% of the companies in the same industry.
CON has a Return On Equity of 8.97%. This is in the better half of the industry: CON outperforms 71.43% of its industry peers.
CON's Return On Invested Capital of 8.63% is fine compared to the rest of the industry. CON outperforms 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CON is in line with the industry average of 6.47%.
The last Return On Invested Capital (8.63%) for CON is above the 3 year average (5.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 8.97% | ||
| ROIC | 8.63% |
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
With a decent Profit Margin value of 3.70%, CON is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CON has declined.
CON has a Operating Margin of 7.34%. This is amongst the best in the industry. CON outperforms 82.14% of its industry peers.
CON's Operating Margin has been stable in the last couple of years.
CON's Gross Margin of 23.39% is in line compared to the rest of the industry. CON outperforms 42.86% of its industry peers.
In the last couple of years the Gross Margin of CON has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.34% | ||
| PM (TTM) | 3.7% | ||
| GM | 23.39% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CON is still creating some value.
The number of shares outstanding for CON remains at a similar level compared to 1 year ago.
CON has about the same amout of shares outstanding than it did 5 years ago.
CON has a better debt/assets ratio than last year.
2.2 Solvency
CON has an Altman-Z score of 2.52. This is not the best score and indicates that CON is in the grey zone with still only limited risk for bankruptcy at the moment.
CON's Altman-Z score of 2.52 is amongst the best of the industry. CON outperforms 82.14% of its industry peers.
CON has a debt to FCF ratio of 3.48. This is a good value and a sign of high solvency as CON would need 3.48 years to pay back of all of its debts.
CON's Debt to FCF ratio of 3.48 is amongst the best of the industry. CON outperforms 82.14% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that CON is not too dependend on debt financing.
CON's Debt to Equity ratio of 0.28 is amongst the best of the industry. CON outperforms 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.44
WACC5.98%
2.3 Liquidity
CON has a Current Ratio of 1.68. This is a normal value and indicates that CON is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.68, CON belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
CON has a Quick Ratio of 1.47. This is a normal value and indicates that CON is financially healthy and should not expect problems in meeting its short term obligations.
CON's Quick ratio of 1.47 is amongst the best of the industry. CON outperforms 89.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.54% over the past year.
The Earnings Per Share has been decreasing by -6.04% on average over the past years.
Looking at the last year, CON shows a very negative growth in Revenue. The Revenue has decreased by -14.83% in the last year.
Measured over the past years, CON shows a decrease in Revenue. The Revenue has been decreasing by -2.24% on average per year.
EPS 1Y (TTM)40.54%
EPS 3Y-6.61%
EPS 5Y-6.04%
EPS Q2Q%1437.5%
Revenue 1Y (TTM)-14.83%
Revenue growth 3Y5.56%
Revenue growth 5Y-2.24%
Sales Q2Q%-0.81%
3.2 Future
CON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.90% yearly.
The Revenue is expected to grow by 1.63% on average over the next years.
EPS Next Y4.14%
EPS Next 2Y13.36%
EPS Next 3Y13.11%
EPS Next 5Y6.9%
Revenue Next Year-1.85%
Revenue Next 2Y0.31%
Revenue Next 3Y1.49%
Revenue Next 5Y1.63%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.06, which indicates a very decent valuation of CON.
Based on the Price/Earnings ratio, CON is valued a bit cheaper than 67.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.25, CON is valued rather cheaply.
A Price/Forward Earnings ratio of 7.65 indicates a rather cheap valuation of CON.
Based on the Price/Forward Earnings ratio, CON is valued a bit cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. CON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CON.
CON's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.14 | ||
| EV/EBITDA | 4.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CON has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CON's earnings are expected to grow with 13.11% in the coming years.
PEG (NY)1.95
PEG (5Y)N/A
EPS Next 2Y13.36%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.24%, CON has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.12, CON has a dividend in line with its industry peers.
CON's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
5.2 History
The dividend of CON decreases each year by -14.27%.
Dividend Growth(5Y)-14.27%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
CON pays out 34.13% of its income as dividend. This is a sustainable payout ratio.
DP34.13%
EPS Next 2Y13.36%
EPS Next 3Y13.11%
FRA:CON (5/30/2025, 7:00:00 PM)
77.3
+0.2 (+0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners34.51%
Inst Owner ChangeN/A
Ins Owners46%
Ins Owner ChangeN/A
Market Cap15.46B
Analysts76.15
Price Target77.52 (0.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
Yearly Dividend2.2
Dividend Growth(5Y)-14.27%
DP34.13%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)38.27%
Min EPS beat(2)-0.57%
Max EPS beat(2)77.12%
EPS beat(4)2
Avg EPS beat(4)27.24%
Min EPS beat(4)-1.31%
Max EPS beat(4)77.12%
EPS beat(8)4
Avg EPS beat(8)5.09%
EPS beat(12)7
Avg EPS beat(12)14.62%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-3.18%
Max Revenue beat(2)0.23%
Revenue beat(4)1
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-3.88%
Max Revenue beat(4)0.23%
Revenue beat(8)1
Avg Revenue beat(8)-2.83%
Revenue beat(12)5
Avg Revenue beat(12)-1.09%
Revenue beat(16)8
Avg Revenue beat(16)-1.14%
PT rev (1m)0.8%
PT rev (3m)1.2%
EPS NQ rev (1m)-17.54%
EPS NQ rev (3m)-38.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.65%
Revenue NQ rev (1m)-1.57%
Revenue NQ rev (3m)-14.85%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-4.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 7.65 | ||
| P/S | 0.44 | ||
| P/FCF | 8.14 | ||
| P/OCF | 4.22 | ||
| P/B | 1.08 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 4.49 |
EPS(TTM)9.59
EY12.41%
EPS(NY)10.1
Fwd EY13.07%
FCF(TTM)9.49
FCFY12.28%
OCF(TTM)18.32
OCFY23.71%
SpS174.17
BVpS71.83
TBVpS65.83
PEG (NY)1.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.45% | ||
| ROE | 8.97% | ||
| ROCE | 12.57% | ||
| ROIC | 8.63% | ||
| ROICexc | 9.44% | ||
| ROICexgc | 10.09% | ||
| OM | 7.34% | ||
| PM (TTM) | 3.7% | ||
| GM | 23.39% | ||
| FCFM | 5.45% |
ROA(3y)2.13%
ROA(5y)1.6%
ROE(3y)5.7%
ROE(5y)4.2%
ROIC(3y)5.66%
ROIC(5y)5.08%
ROICexc(3y)6.45%
ROICexc(5y)5.73%
ROICexgc(3y)8.09%
ROICexgc(5y)7.27%
ROCE(3y)8.36%
ROCE(5y)7.51%
ROICexcg growth 3Y10.87%
ROICexcg growth 5Y-2.17%
ROICexc growth 3Y12.69%
ROICexc growth 5Y0.39%
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%
F-Score7
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.48 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 90.75% | ||
| Cap/Sales | 5.07% | ||
| Interest Coverage | 8.14 | ||
| Cash Conversion | 81.41% | ||
| Profit Quality | 147.32% | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 2.52 |
F-Score7
WACC5.98%
ROIC/WACC1.44
Cap/Depr(3y)84.07%
Cap/Depr(5y)77.33%
Cap/Sales(3y)5.2%
Cap/Sales(5y)5.57%
Profit Quality(3y)125.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40.54%
EPS 3Y-6.61%
EPS 5Y-6.04%
EPS Q2Q%1437.5%
EPS Next Y4.14%
EPS Next 2Y13.36%
EPS Next 3Y13.11%
EPS Next 5Y6.9%
Revenue 1Y (TTM)-14.83%
Revenue growth 3Y5.56%
Revenue growth 5Y-2.24%
Sales Q2Q%-0.81%
Revenue Next Year-1.85%
Revenue Next 2Y0.31%
Revenue Next 3Y1.49%
Revenue Next 5Y1.63%
EBIT growth 1Y83.98%
EBIT growth 3Y10.88%
EBIT growth 5Y-2.84%
EBIT Next Year72.66%
EBIT Next 3Y30.2%
EBIT Next 5Y16.03%
FCF growth 1Y391.75%
FCF growth 3Y117.31%
FCF growth 5Y-3.93%
OCF growth 1Y132.51%
OCF growth 3Y14.1%
OCF growth 5Y-7.86%