CONTINENTAL AG (CON.DE) Stock Fundamental Analysis
Europe - FRA:CON - DE0005439004 - Common Stock
71.8 EUR
-0.76 (-1.05%)
CON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 28 industry peers in the Automobile Components industry. While CON has a great profitability rating, there are some minor concerns on its financial health. CON has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CON was profitable.
CON had a positive operating cash flow in the past year.
CON had positive earnings in 4 of the past 5 years.
CON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CON (4.00%) is better than 82.14% of its industry peers.
CON has a better Return On Equity (29.42%) than 100.00% of its industry peers.
CON has a better Return On Invested Capital (12.27%) than 96.43% of its industry peers.
CON had an Average Return On Invested Capital over the past 3 years of 5.66%. This is in line with the industry average of 6.78%.
The last Return On Invested Capital (12.27%) for CON is above the 3 year average (5.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 29.42% | ||
| ROIC | 12.27% |
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 CON (5.02%) is better than 89.29% of its industry peers.
In the last couple of years the Profit Margin of CON has declined.
CON has a Operating Margin of 7.94%. 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 has a Gross Margin (23.97%) which is in line with 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 | 7.94% | ||
| PM (TTM) | 5.02% | ||
| GM | 23.97% |
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 well above the Cost of Capital (WACC), so CON is creating 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.
Compared to 1 year ago, CON has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.69, we must say that CON is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.69, CON perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
CON has a debt to FCF ratio of 4.84. This is a neutral value as CON would need 4.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.84, CON belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
CON has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CON (1.23) is worse than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 1.69 |
ROIC/WACC2.05
WACC5.99%
2.3 Liquidity
CON has a Current Ratio of 1.18. This is a normal value and indicates that CON is financially healthy and should not expect problems in meeting its short term obligations.
CON has a Current ratio (1.18) which is in line with its industry peers.
A Quick Ratio of 1.03 indicates that CON should not have too much problems paying its short term obligations.
The Quick ratio of CON (1.03) is better than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
CON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.13%, which is quite impressive.
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 -26.66% 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)46.13%
EPS 3Y-6.61%
EPS 5Y-6.04%
EPS Q2Q%58.87%
Revenue 1Y (TTM)-26.66%
Revenue growth 3Y5.56%
Revenue growth 5Y-2.24%
Sales Q2Q%-4.09%
3.2 Future
CON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.28% yearly.
Based on estimates for the next years, CON will show a small growth in Revenue. The Revenue will grow by 1.37% on average per year.
EPS Next Y-4.31%
EPS Next 2Y10.58%
EPS Next 3Y11.44%
EPS Next 5Y6.28%
Revenue Next Year-2.79%
Revenue Next 2Y-0.51%
Revenue Next 3Y0.73%
Revenue Next 5Y1.37%
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
With a Price/Earnings ratio of 6.56, the valuation of CON can be described as very cheap.
82.14% of the companies in the same industry are more expensive than CON, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CON is valued rather cheaply.
CON is valuated cheaply with a Price/Forward Earnings ratio of 7.47.
Based on the Price/Forward Earnings ratio, CON is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.73. CON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
CON's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CON is more expensive than 64.29% of the companies in the same industry.
CON's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.16 | ||
| EV/EBITDA | 5.2 |
4.3 Compensation for Growth
The decent profitability rating of CON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.58%
EPS Next 3Y11.44%
5. Dividend
5.1 Amount
CON has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.81, CON has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, CON pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of CON decreases each year by -14.27%.
Dividend Growth(5Y)-14.27%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
33.56% of the earnings are spent on dividend by CON. This is a low number and sustainable payout ratio.
DP33.56%
EPS Next 2Y10.58%
EPS Next 3Y11.44%
FRA:CON (9/12/2025, 7:00:00 PM)
71.8
-0.76 (-1.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners31.64%
Inst Owner ChangeN/A
Ins Owners46%
Ins Owner ChangeN/A
Market Cap14.36B
Analysts73.33
Price Target83.27 (15.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend2.2
Dividend Growth(5Y)-14.27%
DP33.56%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)68.55%
Min EPS beat(2)59.97%
Max EPS beat(2)77.12%
EPS beat(4)3
Avg EPS beat(4)42.56%
Min EPS beat(4)-0.57%
Max EPS beat(4)77.12%
EPS beat(8)5
Avg EPS beat(8)14.45%
EPS beat(12)7
Avg EPS beat(12)16.31%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.98%
Min Revenue beat(2)-12.32%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-5.07%
Min Revenue beat(4)-12.32%
Max Revenue beat(4)-1.65%
Revenue beat(8)0
Avg Revenue beat(8)-4.48%
Revenue beat(12)3
Avg Revenue beat(12)-2.34%
Revenue beat(16)7
Avg Revenue beat(16)-1.19%
PT rev (1m)1.35%
PT rev (3m)3.89%
EPS NQ rev (1m)-12.2%
EPS NQ rev (3m)-26.94%
EPS NY rev (1m)-8.11%
EPS NY rev (3m)-8.11%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-22.31%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.56 | ||
| Fwd PE | 7.47 | ||
| P/S | 0.48 | ||
| P/FCF | 8.16 | ||
| P/OCF | 4.26 | ||
| P/B | 2.84 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 5.2 |
EPS(TTM)10.95
EY15.25%
EPS(NY)9.61
Fwd EY13.39%
FCF(TTM)8.79
FCFY12.25%
OCF(TTM)16.84
OCFY23.46%
SpS148.44
BVpS25.32
TBVpS19.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 29.42% | ||
| ROCE | 17.88% | ||
| ROIC | 12.27% | ||
| ROICexc | 14.54% | ||
| ROICexgc | 16.2% | ||
| OM | 7.94% | ||
| PM (TTM) | 5.02% | ||
| GM | 23.97% | ||
| FCFM | 5.92% |
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-Score5
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 4.84 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 96.58% | ||
| Cap/Sales | 5.42% | ||
| Interest Coverage | 7.94 | ||
| Cash Conversion | 83.7% | ||
| Profit Quality | 118.05% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.69 |
F-Score5
WACC5.99%
ROIC/WACC2.05
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)46.13%
EPS 3Y-6.61%
EPS 5Y-6.04%
EPS Q2Q%58.87%
EPS Next Y-4.31%
EPS Next 2Y10.58%
EPS Next 3Y11.44%
EPS Next 5Y6.28%
Revenue 1Y (TTM)-26.66%
Revenue growth 3Y5.56%
Revenue growth 5Y-2.24%
Sales Q2Q%-4.09%
Revenue Next Year-2.79%
Revenue Next 2Y-0.51%
Revenue Next 3Y0.73%
Revenue Next 5Y1.37%
EBIT growth 1Y51.84%
EBIT growth 3Y10.88%
EBIT growth 5Y-2.84%
EBIT Next Year72.66%
EBIT Next 3Y30.2%
EBIT Next 5Y16.66%
FCF growth 1Y110038%
FCF growth 3Y117.31%
FCF growth 5Y-3.93%
OCF growth 1Y49.43%
OCF growth 3Y14.1%
OCF growth 5Y-7.86%