CONTINENTAL AG (CON.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CON - DE0005439004 - Common Stock
67.21 EUR
+0.21 (+0.31%)
Taking everything into account, CON scores 4 out of 10 in our fundamental rating. CON was compared to 31 industry peers in the Automobile Components industry. CON has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
- In the past year CON was profitable.
- In the past year CON had a positive cash flow from operations.
- Of the past 5 years CON 4 years were profitable.
- Each year in the past 5 years CON had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 1.33%, CON is doing good in the industry, outperforming 64.52% of the companies in the same industry.
- CON has a Return On Equity of 6.35%. This is in the better half of the industry: CON outperforms 67.74% of its industry peers.
- The Return On Invested Capital of CON (5.91%) is better than 61.29% 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 6.49%.
- The last Return On Invested Capital (5.91%) for CON is above the 3 year average (5.66%), which is a sign of increasing profitability.
| 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
- CON's Profit Margin of 1.00% is in line compared to the rest of the industry. CON outperforms 58.06% of its industry peers.
- In the last couple of years the Profit Margin of CON has declined.
- CON has a worse Operating Margin (3.70%) than 61.29% of its industry peers.
- CON's Operating Margin has been stable in the last couple of years.
- The Gross Margin of CON (24.91%) is comparable to the rest of the industry.
- CON'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), CON is destroying value.
- CON has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for CON remains at a similar level compared to 5 years ago.
- The debt/assets ratio for CON has been reduced compared to a year ago.
2.2 Solvency
- CON has an Altman-Z score of 2.45. 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.
- With an excellent Altman-Z score value of 2.45, CON belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
- A Debt/Equity ratio of 1.32 is on the high side and indicates that CON has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.32, CON is not doing good in the industry: 64.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.45 |
ROIC/WACC0.97
WACC6.06%
2.3 Liquidity
- CON has a Current Ratio of 1.32. 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 (1.32) is comparable to the rest of the industry.
- A Quick Ratio of 0.90 indicates that CON may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.90, CON is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 40.50% over the past year.
- Measured over the past years, CON shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.04% on average per year.
- CON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -38.10%.
- 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)40.5%
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
- Based on estimates for the next years, CON will show a small growth in Earnings Per Share. The EPS will grow by 0.30% on average per year.
- 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
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 5.86, which indicates a rather cheap valuation of CON.
- Based on the Price/Earnings ratio, CON is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.21. CON is valued rather cheaply when compared to this.
- CON is valuated reasonably with a Price/Forward Earnings ratio of 9.46.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CON indicates a somewhat cheap valuation: CON is cheaper than 67.74% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of CON to the average of the S&P500 Index (25.98), we can say CON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 9.46 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CON indicates a slightly more expensive valuation: CON is more expensive than 67.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.07 |
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
- CON has a Yearly Dividend Yield of 3.78%. Purely for dividend investing, there may be better candidates out there.
- CON's Dividend Yield is a higher than the industry average which is at 2.91.
- Compared to an average S&P500 Dividend Yield of 1.81, CON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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
- CON 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 / CON.DE FAQ
What is the fundamental rating for CON stock?
ChartMill assigns a fundamental rating of 4 / 10 to CON.DE.
What is the valuation status of CONTINENTAL AG (CON.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to CONTINENTAL AG (CON.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for CONTINENTAL AG?
CONTINENTAL AG (CON.DE) has a profitability rating of 6 / 10.
How financially healthy is CONTINENTAL AG?
The financial health rating of CONTINENTAL AG (CON.DE) is 3 / 10.
Can you provide the expected EPS growth for CON stock?
The Earnings per Share (EPS) of CONTINENTAL AG (CON.DE) is expected to decline by -56.37% in the next year.