CONTINENTAL AG (CON.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CON - DE0005439004 - Common Stock
66.4 EUR
+0.3 (+0.45%)
We assign a fundamental rating of 4 out of 10 to CON. CON was compared to 32 industry peers in the Automobile Components industry. There are concerns on the financial health of CON while its profitability can be described as average. 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.
- In the past year CON had a positive cash flow from operations.
- 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
- CON's Return On Assets of 1.33% is fine compared to the rest of the industry. CON outperforms 65.63% of its industry peers.
- CON has a better Return On Equity (6.35%) than 68.75% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 5.91%, CON is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CON is in line with the industry average of 6.33%.
- 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 has a Profit Margin (1.00%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of CON has declined.
- CON has a Operating Margin (3.70%) which is comparable to the rest of the industry.
- CON's Operating Margin has been stable in the last couple of years.
- CON has a Gross Margin (24.91%) which 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CON is destroying value.
- The number of shares outstanding for CON remains at a similar level compared to 1 year ago.
- CON has about the same amout of shares outstanding than it did 5 years ago.
- CON has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.44 indicates that CON is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.44, CON is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
- CON has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.32, CON is doing worse than 65.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.44 |
ROIC/WACC0.98
WACC6.04%
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.
- With a decent Quick ratio value of 0.90, CON is doing good in the industry, outperforming 71.88% 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%.
- The Revenue has been decreasing by -2.24% on average over the past years.
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
- The Earnings Per Share is expected to grow by 0.30% on average over the next years.
- CON is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -11.90% yearly.
EPS Next Y-48.02%
EPS Next 2Y-0.37%
EPS Next 3Y3.11%
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
- Based on the Price/Earnings ratio of 5.79, the valuation of CON can be described as very cheap.
- Compared to the rest of the industry, the Price/Earnings ratio of CON indicates a rather cheap valuation: CON is cheaper than 90.63% of the companies listed in the same industry.
- CON is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 8.51, the valuation of CON can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, CON is valued a bit cheaper than 71.88% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, CON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.79 | ||
| Fwd PE | 8.51 |
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 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.01 |
4.3 Compensation for Growth
- CON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.37%
EPS Next 3Y3.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.70%, CON has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.94, CON pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, CON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.7% |
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-0.37%
EPS Next 3Y3.11%
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 -48.02% in the next year.