CONTINENTAL AG (CON.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CON - DE0005439004 - Common Stock
67.5 EUR
+0.94 (+1.41%)
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 it does not seem to be growing.
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.
- CON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of CON (1.33%) is better than 64.52% of its industry peers.
- With a decent Return On Equity value of 6.35%, CON is doing good in the industry, outperforming 67.74% of the companies in the same industry.
- With a decent Return On Invested Capital value of 5.91%, CON is doing good in the industry, outperforming 61.29% of the companies in the same industry.
- 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.
- CON's Profit Margin has declined in the last couple of years.
- The Operating Margin of CON (3.70%) is worse than 61.29% of its industry peers.
- CON's Operating Margin has been stable in the last couple of years.
- CON's Gross Margin of 24.91% is in line compared to the rest of the industry. CON outperforms 48.39% 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 | 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
- CON has a better debt/assets ratio than last year.
2.2 Solvency
- CON has an Altman-Z score of 2.44. 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.
- CON has a better Altman-Z score (2.44) than 80.65% of its industry peers.
- 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 | 2.44 |
ROIC/WACC0.98
WACC6.05%
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.
- CON has a Current ratio (1.32) which 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
- CON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.50%, which is quite impressive.
- CON shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.04% yearly.
- 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
- CON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.30% yearly.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- CON is valuated cheaply with a Price/Earnings ratio of 5.88.
- Compared to the rest of the industry, the Price/Earnings ratio of CON indicates a rather cheap valuation: CON is cheaper than 90.32% of the companies listed in the same industry.
- CON is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 9.50, the valuation of CON can be described as reasonable.
- 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.
- CON's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 9.5 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CON is valued a bit more expensive than the industry average as 67.74% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.04 |
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%.
- 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 1.82, 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
- 201.61% of the earnings are spent on dividend by CON. 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 4 / 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 5 / 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.