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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CON has a decent growth rate and is not valued too expensively.
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.
CON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CON's Return On Assets of 3.45% is fine compared to the rest of the industry. CON outperforms 71.43% of its industry peers.
CON has a better Return On Equity (8.97%) than 71.43% of its industry peers.
CON has a Return On Invested Capital of 8.63%. This is in the better half of the industry: CON outperforms 78.57% 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 6.47%.
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
CON has a Profit Margin of 3.70%. This is in the better half of the industry: CON outperforms 75.00% of its industry peers.
CON's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 7.34%, CON belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
CON's Operating Margin has been stable in the last couple of years.
The Gross Margin of CON (23.39%) 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 | 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
CON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
Compared to 1 year ago, CON has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.52 indicates that CON is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CON (2.52) is better than 82.14% of its industry peers.
The Debt to FCF ratio of CON is 3.48, which is a good value as it means it would take CON, 3.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.48, CON belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.
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
A Current Ratio of 1.68 indicates that CON should not have too much problems paying its short term obligations.
CON's Current ratio of 1.68 is amongst the best of the industry. CON outperforms 85.71% of its industry peers.
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.
The Quick ratio of CON (1.47) is better than 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.
CON shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.04% yearly.
The Revenue for CON has decreased by -14.83% in the past year. This is quite bad
CON shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.24% yearly.
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
The Earnings Per Share is expected to grow by 6.90% on average over the next years.
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
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
Based on the Price/Earnings ratio of 8.16, the valuation of CON can be described as reasonable.
67.86% of the companies in the same industry are more expensive than CON, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.17. CON is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.75, which 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 22.10. CON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.16 | ||
| Fwd PE | 7.75 |
4.2 Price Multiples
CON's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CON.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 4.5 |
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.
CON's earnings are expected to grow with 13.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.97
PEG (5Y)N/A
EPS Next 2Y13.36%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
CON has a Yearly Dividend Yield of 3.22%.
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 | 3.22% |
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
34.13% of the earnings are spent on dividend by CON. This is a low number and sustainable payout ratio.
DP34.13%
EPS Next 2Y13.36%
EPS Next 3Y13.11%
FRA:CON (5/29/2025, 10:19:17 AM)
78.26
+1.04 (+1.35%)
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 Cap15.65B
Analysts76.15
Price Target77.52 (-0.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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 | 8.16 | ||
| Fwd PE | 7.75 | ||
| P/S | 0.45 | ||
| P/FCF | 8.24 | ||
| P/OCF | 4.27 | ||
| P/B | 1.09 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 4.5 |
EPS(TTM)9.59
EY12.25%
EPS(NY)10.1
Fwd EY12.91%
FCF(TTM)9.49
FCFY12.13%
OCF(TTM)18.32
OCFY23.41%
SpS174.17
BVpS71.83
TBVpS65.83
PEG (NY)1.97
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%