CONTINENTAL AG (CON.DE) Stock Fundamental Analysis
FRA:CON - Deutsche Boerse Ag - DE0005439004 - Common Stock - Currency: EUR
Taking everything into account, CON scores 5 out of 10 in our fundamental rating. CON was compared to 29 industry peers in the Automobile Components industry. Both the profitability and the financial health of CON get a neutral evaluation. Nothing too spectacular is happening here. CON has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
CON had positive earnings in 4 of the past 5 years.
In the past 5 years CON always reported a positive cash flow from operatings.
1.2 Ratios
CON's Return On Assets of 3.16% is fine compared to the rest of the industry. CON outperforms 72.41% of its industry peers.
With a decent Return On Equity value of 8.14%, CON is doing good in the industry, outperforming 65.52% of the companies in the same industry.
The Return On Invested Capital of CON (6.82%) is better than 65.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CON is in line with the industry average of 6.36%.
The 3 year average ROIC (5.66%) for CON is below the current ROIC(6.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 8.14% | ||
| ROIC | 6.82% |
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
CON has a Profit Margin of 2.94%. This is in the better half of the industry: CON outperforms 72.41% of its industry peers.
In the last couple of years the Profit Margin of CON has declined.
CON has a Operating Margin of 5.67%. This is in the better half of the industry: CON outperforms 72.41% of its industry peers.
CON's Operating Margin has been stable in the last couple of years.
CON has a worse Gross Margin (22.16%) than 62.07% 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 | 5.67% | ||
| PM (TTM) | 2.94% | ||
| GM | 22.16% |
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) just above the Cost of Capital (WACC), CON is creating some value.
The number of shares outstanding for CON remains at a similar level compared to 1 year ago.
Compared to 5 years ago, CON has about the same amount of shares outstanding.
CON has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.35 indicates that CON is not a great score, but indicates only limited risk for bankruptcy at the moment.
CON has a better Altman-Z score (2.35) than 79.31% of its industry peers.
The Debt to FCF ratio of CON is 7.07, which is on the high side as it means it would take CON, 7.07 years of fcf income to pay off all of its debts.
CON has a better Debt to FCF ratio (7.07) than 68.97% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that CON is not too dependend on debt financing.
CON has a better Debt to Equity ratio (0.29) than 96.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.13
WACC6.03%
2.3 Liquidity
CON has a Current Ratio of 1.26. This is a normal value and indicates that CON is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CON (1.26) is comparable to the rest of the industry.
A Quick Ratio of 0.83 indicates that CON may have some problems paying its short term obligations.
CON's Quick ratio of 0.83 is in line compared to the rest of the industry. CON outperforms 41.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
CON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.19%.
CON shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.04% yearly.
The Revenue has decreased by -4.11% in the past year.
The Revenue has been decreasing by -2.24% on average over the past years.
EPS 1Y (TTM)-11.19%
EPS 3Y-6.61%
EPS 5Y-6.04%
EPS Q2Q%-11.15%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y5.56%
Revenue growth 5Y-2.24%
Sales Q2Q%-3.38%
3.2 Future
Based on estimates for the next years, CON will show a small growth in Earnings Per Share. The EPS will grow by 6.90% on average per year.
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-1.69%
Revenue Next 2Y0.45%
Revenue Next 3Y1.54%
Revenue Next 5Y1.63%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 8.71 indicates a reasonable valuation of CON.
Based on the Price/Earnings ratio, CON is valued a bit cheaper than 62.07% of the companies in the same industry.
CON is valuated cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.36, which indicates a very decent valuation of CON.
Based on the Price/Forward Earnings ratio, CON is valued a bit cheaper than 62.07% of the companies in the same industry.
CON is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 8.36 |
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 a bit more expensive when compared to the industry. CON is more expensive than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.01 | ||
| EV/EBITDA | 3.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CON may justify a higher PE ratio.
CON's earnings are expected to grow with 13.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.1
PEG (5Y)N/A
EPS Next 2Y13.36%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.64%, CON has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.66, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
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
37.67% of the earnings are spent on dividend by CON. This is a low number and sustainable payout ratio.
DP37.67%
EPS Next 2Y13.36%
EPS Next 3Y13.11%
FRA:CON (4/30/2025, 7:00:00 PM)
68.44
+0.54 (+0.8%)
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 Cap13.69B
Analysts76.15
Price Target76.4 (11.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.64% |
Yearly Dividend2.2
Dividend Growth(5Y)-14.27%
DP37.67%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.58%
Min EPS beat(2)-0.57%
Max EPS beat(2)33.74%
EPS beat(4)1
Avg EPS beat(4)-13.09%
Min EPS beat(4)-84.2%
Max EPS beat(4)33.74%
EPS beat(8)4
Avg EPS beat(8)6.1%
EPS beat(12)7
Avg EPS beat(12)11.6%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.15%
Min Revenue beat(2)-3.18%
Max Revenue beat(2)-3.12%
Revenue beat(4)0
Avg Revenue beat(4)-3.12%
Min Revenue beat(4)-3.88%
Max Revenue beat(4)-2.29%
Revenue beat(8)1
Avg Revenue beat(8)-2.73%
Revenue beat(12)5
Avg Revenue beat(12)-0.94%
Revenue beat(16)7
Avg Revenue beat(16)-2.25%
PT rev (1m)-0.27%
PT rev (3m)2.96%
EPS NQ rev (1m)-20.39%
EPS NQ rev (3m)-53.33%
EPS NY rev (1m)-5.42%
EPS NY rev (3m)-13.95%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-13.32%
Revenue NY rev (1m)-3.7%
Revenue NY rev (3m)-4.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.71 | ||
| Fwd PE | 8.36 | ||
| P/S | 0.34 | ||
| P/FCF | 14.01 | ||
| P/OCF | 4.67 | ||
| P/B | 0.95 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 3.89 |
EPS(TTM)7.86
EY11.48%
EPS(NY)8.19
Fwd EY11.96%
FCF(TTM)4.88
FCFY7.14%
OCF(TTM)14.65
OCFY21.41%
SpS198.59
BVpS71.75
TBVpS52.83
PEG (NY)2.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.16% | ||
| ROE | 8.14% | ||
| ROCE | 9.93% | ||
| ROIC | 6.82% | ||
| ROICexc | 7.89% | ||
| ROICexgc | 9.78% | ||
| OM | 5.67% | ||
| PM (TTM) | 2.94% | ||
| GM | 22.16% | ||
| FCFM | 2.46% |
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 Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 7.07 | ||
| Debt/EBITDA | 0.92 | ||
| Cap/Depr | 88.38% | ||
| Cap/Sales | 4.92% | ||
| Interest Coverage | 6.51 | ||
| Cash Conversion | 65.64% | ||
| Profit Quality | 83.65% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.35 |
F-Score7
WACC6.03%
ROIC/WACC1.13
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)-11.19%
EPS 3Y-6.61%
EPS 5Y-6.04%
EPS Q2Q%-11.15%
EPS Next Y4.14%
EPS Next 2Y13.36%
EPS Next 3Y13.11%
EPS Next 5Y6.9%
Revenue 1Y (TTM)-4.11%
Revenue growth 3Y5.56%
Revenue growth 5Y-2.24%
Sales Q2Q%-3.38%
Revenue Next Year-1.69%
Revenue Next 2Y0.45%
Revenue Next 3Y1.54%
Revenue Next 5Y1.63%
EBIT growth 1Y24.69%
EBIT growth 3Y10.88%
EBIT growth 5Y-2.84%
EBIT Next Year88.23%
EBIT Next 3Y31.26%
EBIT Next 5Y16.03%
FCF growth 1Y-17.55%
FCF growth 3Y117.31%
FCF growth 5Y-3.93%
OCF growth 1Y-11.92%
OCF growth 3Y14.1%
OCF growth 5Y-7.86%