CONTINENTAL AG (CON.DE) Stock Fundamental Analysis
FRA:CON - Deutsche Boerse Ag - DE0005439004 - Common Stock - Currency: EUR
CON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 29 industry peers in the Automobile Components industry. While CON has a great health rating, its profitability is only average at the moment. CON has a correct valuation and a medium growth rate.
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.
CON had positive earnings in 4 of the past 5 years.
Each year in the past 5 years CON had a positive operating cash flow.
1.2 Ratios
CON has a better Return On Assets (3.45%) than 72.41% of its industry peers.
CON has a better Return On Equity (8.97%) than 72.41% of its industry peers.
CON's Return On Invested Capital of 8.63% is fine compared to the rest of the industry. CON outperforms 79.31% of its industry peers.
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 6.47%.
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
The Profit Margin of CON (3.70%) is better than 75.86% of its industry peers.
In the last couple of years the Profit Margin of CON has declined.
With a decent Operating Margin value of 7.34%, CON is doing good in the industry, outperforming 79.31% of the companies in the same industry.
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 (23.39%) is comparable to the rest of the industry.
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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CON is still creating some value.
Compared to 1 year ago, CON has about the same amount of shares outstanding.
The number of shares outstanding for CON remains at a similar level compared to 5 years ago.
The debt/assets ratio for CON has been reduced compared to a year ago.
2.2 Solvency
CON has an Altman-Z score of 2.52. 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 (2.52) than 82.76% 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.
CON's Debt to FCF ratio of 3.48 is amongst the best of the industry. CON outperforms 89.66% of its industry peers.
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 96.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 2.52 |
ROIC/WACC1.44
WACC6.01%
2.3 Liquidity
A Current Ratio of 1.68 indicates that CON should not have too much problems paying its short term obligations.
CON has a Current ratio of 1.68. This is amongst the best in the industry. CON outperforms 82.76% 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.
CON has a better Quick ratio (1.47) than 89.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
CON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.54%, which is quite impressive.
The Earnings Per Share has been decreasing by -6.04% on average over the past years.
CON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.83%.
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)40.54%
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 6.28% on average over the next years.
CON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.06% yearly.
EPS Next Y4.14%
EPS Next 2Y13.36%
EPS Next 3Y13.11%
EPS Next 5Y6.28%
Revenue Next Year-1.85%
Revenue Next 2Y0.31%
Revenue Next 3Y1.49%
Revenue Next 5Y2.06%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.06, which indicates a very decent valuation of CON.
Compared to the rest of the industry, the Price/Earnings ratio of CON indicates a somewhat cheap valuation: CON is cheaper than 79.31% of the companies listed in the same industry.
CON's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 7.66, the valuation of CON can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CON indicates a somewhat cheap valuation: CON is cheaper than 62.07% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. CON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 7.66 |
4.2 Price Multiples
CON's Enterprise Value to EBITDA ratio is in line with the industry average.
CON's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 4.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CON does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of CON may justify a higher PE ratio.
A more expensive valuation may be justified as CON's earnings are expected to grow with 13.11% in the coming years.
PEG (NY)1.95
PEG (5Y)N/A
EPS Next 2Y13.36%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
CON has a Yearly Dividend Yield of 3.19%.
CON's Dividend Yield is comparable with the industry average which is at 4.93.
CON's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
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 (7/11/2025, 7:00:00 PM)
77.34
-1.04 (-1.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners31.64%
Inst Owner ChangeN/A
Ins Owners46%
Ins Owner ChangeN/A
Market Cap15.47B
Analysts73.6
Price Target80.42 (3.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend2.2
Dividend Growth(5Y)-14.27%
DP34.13%
Div Incr Years1
Div Non Decr Years2
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)0.33%
PT rev (3m)4.57%
EPS NQ rev (1m)39.49%
EPS NQ rev (3m)15.02%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.42%
Revenue NQ rev (1m)-24.55%
Revenue NQ rev (3m)-25.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 7.66 | ||
| P/S | 0.44 | ||
| P/FCF | 8.15 | ||
| P/OCF | 4.22 | ||
| P/B | 1.08 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 4.5 |
EPS(TTM)9.59
EY12.4%
EPS(NY)10.1
Fwd EY13.06%
FCF(TTM)9.49
FCFY12.28%
OCF(TTM)18.32
OCFY23.69%
SpS174.17
BVpS71.83
TBVpS65.83
PEG (NY)1.95
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
WACC6.01%
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 5Y6.28%
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 5Y2.06%
EBIT growth 1Y83.98%
EBIT growth 3Y10.88%
EBIT growth 5Y-2.84%
EBIT Next Year72.66%
EBIT Next 3Y30.2%
EBIT Next 5Y16.52%
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%