CONTINENTAL AG (CON.DE) Stock Fundamental Analysis
FRA:CON - Deutsche Boerse Ag - DE0005439004 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to CON. CON was compared to 29 industry peers in the Automobile Components industry. CON has an average financial health and profitability rating. 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.
The reported net income has been mixed in the past 5 years: CON reported negative net income in multiple years.
CON had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.72%, CON is doing good in the industry, outperforming 67.74% of the companies in the same industry.
With a decent Return On Equity value of 7.30%, CON is doing good in the industry, outperforming 64.52% of the companies in the same industry.
With a Return On Invested Capital value of 3.89%, CON is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
CON had an Average Return On Invested Capital over the past 3 years of 3.45%. This is below the industry average of 6.14%.
The last Return On Invested Capital (3.89%) for CON is above the 3 year average (3.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.3% | ||
| ROIC | 3.89% |
ROA(3y)2.42%
ROA(5y)0.39%
ROE(3y)6.9%
ROE(5y)0.98%
ROIC(3y)3.45%
ROIC(5y)3.46%
1.3 Margins
Looking at the Profit Margin, with a value of 2.51%, CON is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
CON's Profit Margin has declined in the last couple of years.
CON's Operating Margin of 4.61% is in line compared to the rest of the industry. CON outperforms 54.84% of its industry peers.
CON's Operating Margin has declined in the last couple of years.
CON has a Gross Margin of 21.66%. This is in the lower half of the industry: CON underperforms 64.52% of its industry peers.
In the last couple of years the Gross Margin of CON has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.61% | ||
| PM (TTM) | 2.51% | ||
| GM | 21.66% |
OM growth 3Y3.59%
OM growth 5Y-11.93%
PM growth 3YN/A
PM growth 5Y-15.61%
GM growth 3Y-3.3%
GM growth 5Y-3.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CON is destroying value.
There is no outstanding debt for CON. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 2.30 indicates that CON is not a great score, but indicates only limited risk for bankruptcy at the moment.
CON's Altman-Z score of 2.30 is fine compared to the rest of the industry. CON outperforms 74.19% of its industry peers.
The Debt to FCF ratio of CON is 7.11, which is on the high side as it means it would take CON, 7.11 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.11, CON is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that CON is not too dependend on debt financing.
CON has a Debt to Equity ratio of 0.33. This is amongst the best in the industry. CON outperforms 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 7.11 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.74
WACC5.25%
2.3 Liquidity
CON has a Current Ratio of 1.25. 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 of 1.25. This is in the lower half of the industry: CON underperforms 61.29% of its industry peers.
A Quick Ratio of 0.81 indicates that CON may have some problems paying its short term obligations.
CON has a Quick ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
CON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.72%.
Measured over the past years, CON shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.92% on average per year.
EPS 1Y (TTM)-35.72%
EPS 3YN/A
EPS 5Y-11.92%
EPS Q2Q%-91.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.93%
3.2 Future
Based on estimates for the next years, CON will show a very strong growth in Earnings Per Share. The EPS will grow by 23.64% on average per year.
The Revenue is expected to grow by 5.53% on average over the next years.
EPS Next Y62.85%
EPS Next 2Y37.66%
EPS Next 3Y34.13%
EPS Next 5Y23.64%
Revenue Next Year2.12%
Revenue Next 2Y2.78%
Revenue Next 3Y4.04%
Revenue Next 5Y5.53%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.04, which indicates a correct valuation of CON.
64.52% of the companies in the same industry are more expensive than CON, based on the Price/Earnings ratio.
CON is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.40, the valuation of CON can be described as very cheap.
Based on the Price/Forward Earnings ratio, CON is valued a bit cheaper than 64.52% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CON to the average of the S&P500 Index (22.10), we can say CON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CON.
Based on the Price/Free Cash Flow ratio, CON is valued a bit more expensive than the industry average as 61.29% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.66 | ||
| EV/EBITDA | 4.66 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CON's earnings are expected to grow with 34.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y37.66%
EPS Next 3Y34.13%
5. Dividend
5.1 Amount
CON has a Yearly Dividend Yield of 3.57%. Purely for dividend investing, there may be better candidates out there.
CON's Dividend Yield is comparable with the industry average which is at 5.30.
CON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
5.2 History
The dividend of CON decreases each year by -19.73%.
Dividend Growth(5Y)-19.73%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
43.78% of the earnings are spent on dividend by CON. This is a bit on the high side, but may be sustainable.
DP43.78%
EPS Next 2Y37.66%
EPS Next 3Y34.13%
FRA:CON (3/7/2025, 7:00:00 PM)
68.52
-1.48 (-2.11%)
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 Cap13.70B
Analysts76.15
Price Target76.6 (11.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
Yearly Dividend1.5
Dividend Growth(5Y)-19.73%
DP43.78%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.21%
Min EPS beat(2)-1.31%
Max EPS beat(2)33.74%
EPS beat(4)2
Avg EPS beat(4)-7.45%
Min EPS beat(4)-84.2%
Max EPS beat(4)33.74%
EPS beat(8)4
Avg EPS beat(8)2.74%
EPS beat(12)8
Avg EPS beat(12)35.9%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-3.88%
Max Revenue beat(2)-3.12%
Revenue beat(4)0
Avg Revenue beat(4)-3.59%
Min Revenue beat(4)-5.06%
Max Revenue beat(4)-2.29%
Revenue beat(8)2
Avg Revenue beat(8)-1.83%
Revenue beat(12)6
Avg Revenue beat(12)-0.3%
Revenue beat(16)7
Avg Revenue beat(16)-3.04%
PT rev (1m)1.83%
PT rev (3m)4.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.42%
EPS NY rev (1m)1.69%
EPS NY rev (3m)3.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.49%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 7.4 | ||
| P/S | 0.34 | ||
| P/FCF | 12.66 | ||
| P/OCF | 4.4 | ||
| P/B | 1 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 4.66 |
EPS(TTM)5.69
EY8.3%
EPS(NY)9.26
Fwd EY13.52%
FCF(TTM)5.41
FCFY7.9%
OCF(TTM)15.59
OCFY22.75%
SpS200.35
BVpS68.79
TBVpS49.52
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.3% | ||
| ROCE | 8.27% | ||
| ROIC | 3.89% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 5.35% | ||
| OM | 4.61% | ||
| PM (TTM) | 2.51% | ||
| GM | 21.66% | ||
| FCFM | 2.7% |
ROA(3y)2.42%
ROA(5y)0.39%
ROE(3y)6.9%
ROE(5y)0.98%
ROIC(3y)3.45%
ROIC(5y)3.46%
ROICexc(3y)3.9%
ROICexc(5y)3.9%
ROICexgc(3y)4.97%
ROICexgc(5y)5.12%
ROCE(3y)7.46%
ROCE(5y)7.55%
ROICexcg growth 3Y17.79%
ROICexcg growth 5Y-14.59%
ROICexc growth 3Y19.84%
ROICexc growth 5Y-10.21%
OM growth 3Y3.59%
OM growth 5Y-11.93%
PM growth 3YN/A
PM growth 5Y-15.61%
GM growth 3Y-3.3%
GM growth 5Y-3.19%
F-Score6
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 7.11 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 90.6% | ||
| Cap/Sales | 5.08% | ||
| Interest Coverage | 5.23 | ||
| Cash Conversion | 76.19% | ||
| Profit Quality | 107.7% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 2.3 |
F-Score6
WACC5.25%
ROIC/WACC0.74
Cap/Depr(3y)80.53%
Cap/Depr(5y)71.93%
Cap/Sales(3y)5.41%
Cap/Sales(5y)6.03%
Profit Quality(3y)99.58%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-35.72%
EPS 3YN/A
EPS 5Y-11.92%
EPS Q2Q%-91.86%
EPS Next Y62.85%
EPS Next 2Y37.66%
EPS Next 3Y34.13%
EPS Next 5Y23.64%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.93%
Revenue Next Year2.12%
Revenue Next 2Y2.78%
Revenue Next 3Y4.04%
Revenue Next 5Y5.53%
EBIT growth 1Y-0.78%
EBIT growth 3Y13.05%
EBIT growth 5Y-13.15%
EBIT Next Year93.62%
EBIT Next 3Y33.66%
EBIT Next 5Y24.23%
FCF growth 1Y189.06%
FCF growth 3Y26.32%
FCF growth 5Y-6.87%
OCF growth 1Y259.69%
OCF growth 3Y7.03%
OCF growth 5Y-7.74%