CONTINENTAL AG (CON.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CON - DE0005439004 - Common Stock
67.2 EUR
+0.1 (+0.15%)
We assign a fundamental rating of 4 out of 10 to CON. CON was compared to 31 industry peers in the Automobile Components industry. While CON is still in line with the averages on profitability rating, there are concerns on its financial health. 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
- CON had positive earnings in the past year.
- 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
- 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.
- 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.
- CON has a Return On Invested Capital of 5.91%. This is in the better half of the industry: CON outperforms 61.29% 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 6.49%.
- 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
- Looking at the Profit Margin, with a value of 1.00%, CON is in line with its industry, outperforming 58.06% of the companies in the same industry.
- In the last couple of years the Profit Margin of CON has declined.
- CON's Operating Margin of 3.70% is on the low side compared to the rest of the industry. CON is outperformed by 61.29% of its industry peers.
- In the last couple of years the Operating Margin of CON has remained more or less at the same level.
- 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
- 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.
- 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
- An Altman-Z score of 2.45 indicates that CON is not a great score, but indicates only limited risk for bankruptcy at the moment.
- CON has a better Altman-Z score (2.45) than 80.65% of its industry peers.
- CON has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
- CON has a Debt to Equity ratio of 1.32. This is in the lower half of the industry: CON underperforms 64.52% of its industry peers.
| 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.
- With a Current ratio value of 1.32, CON perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
- CON has a Quick Ratio of 1.32. This is a bad value and indicates that CON is not financially healthy enough and could expect problems in meeting its short term obligations.
- CON's Quick ratio of 0.90 is fine compared to the rest of the industry. CON outperforms 70.97% of its industry peers.
| 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.
- 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.
- The Revenue for CON has decreased by -38.10% in the past year. This is quite bad
- 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.
- Based on estimates for the next years, CON will show a very negative growth in Revenue. The Revenue will decrease by -11.90% on average per year.
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
- A Price/Earnings ratio of 5.86 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.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, CON is valued rather cheaply.
- The Price/Forward Earnings ratio is 9.45, which indicates a very decent valuation of CON.
- 67.74% of the companies in the same industry are more expensive than CON, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. CON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 9.45 |
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 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.08 |
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.
- Compared to an average industry Dividend Yield of 2.91, 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 | 3.78% |
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 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.