CONTINENTAL AG (CON.DE) Stock Fundamental Analysis
Europe - FRA:CON - DE0005439004 - Common Stock
71.98 EUR
-0.58 (-0.8%)
CON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 industry peers in the Automobile Components industry. While CON has a great profitability rating, there are some minor concerns on its financial health. CON has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years CON had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.00%, CON is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
The Return On Equity of CON (29.42%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 12.27%, CON belongs to the best of the industry, outperforming 96.55% 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 6.57%.
The last Return On Invested Capital (12.27%) for CON is above the 3 year average (5.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 29.42% | ||
| ROIC | 12.27% |
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 5.02%, CON belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
In the last couple of years the Profit Margin of CON has declined.
CON has a Operating Margin of 7.94%. This is in the better half of the industry: CON outperforms 79.31% 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 (23.97%) 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 | 7.94% | ||
| PM (TTM) | 5.02% | ||
| GM | 23.97% |
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 well above the Cost of Capital (WACC), so CON is creating 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.
Compared to 1 year ago, CON has an improved debt to assets ratio.
2.2 Solvency
CON has an Altman-Z score of 1.69. This is a bad value and indicates that CON is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.69, CON perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
The Debt to FCF ratio of CON is 4.84, which is a neutral value as it means it would take CON, 4.84 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CON (4.84) is better than 89.66% of its industry peers.
A Debt/Equity ratio of 1.23 is on the high side and indicates that CON has dependencies on debt financing.
The Debt to Equity ratio of CON (1.23) is worse than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 1.69 |
ROIC/WACC2.05
WACC6%
2.3 Liquidity
CON has a Current Ratio of 1.18. This is a normal value and indicates that CON is financially healthy and should not expect problems in meeting its short term obligations.
CON's Current ratio of 1.18 is on the low side compared to the rest of the industry. CON is outperformed by 62.07% of its industry peers.
CON has a Quick Ratio of 1.03. 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 Quick ratio (1.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.13% 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 -26.66%.
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)46.13%
EPS 3Y-6.61%
EPS 5Y-6.04%
EPS Q2Q%58.87%
Revenue 1Y (TTM)-26.66%
Revenue growth 3Y5.56%
Revenue growth 5Y-2.24%
Sales Q2Q%-4.09%
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 6.28% on average per year.
The Revenue is expected to grow by 1.37% on average over the next years.
EPS Next Y-4.31%
EPS Next 2Y10.58%
EPS Next 3Y11.44%
EPS Next 5Y6.28%
Revenue Next Year-2.8%
Revenue Next 2Y-0.46%
Revenue Next 3Y0.65%
Revenue Next 5Y1.37%
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 6.57, which indicates a rather cheap valuation of CON.
Compared to the rest of the industry, the Price/Earnings ratio of CON indicates a rather cheap valuation: CON is cheaper than 82.76% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.27. CON is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.49, which indicates a rather cheap valuation of CON.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CON indicates a somewhat cheap valuation: CON is cheaper than 68.97% of the companies listed in the same industry.
CON is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.57 | ||
| Fwd PE | 7.49 |
4.2 Price Multiples
65.52% of the companies in the same industry are cheaper than CON, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CON is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.18 | ||
| EV/EBITDA | 5.2 |
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 2Y10.58%
EPS Next 3Y11.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.45%, CON has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.68, CON has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, CON pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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
33.56% of the earnings are spent on dividend by CON. This is a low number and sustainable payout ratio.
DP33.56%
EPS Next 2Y10.58%
EPS Next 3Y11.44%
FRA:CON (9/16/2025, 5:25:12 PM)
71.98
-0.58 (-0.8%)
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 Cap14.40B
Analysts73.33
Price Target84.51 (17.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend2.2
Dividend Growth(5Y)-14.27%
DP33.56%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)68.55%
Min EPS beat(2)59.97%
Max EPS beat(2)77.12%
EPS beat(4)3
Avg EPS beat(4)42.56%
Min EPS beat(4)-0.57%
Max EPS beat(4)77.12%
EPS beat(8)5
Avg EPS beat(8)14.45%
EPS beat(12)7
Avg EPS beat(12)16.31%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.98%
Min Revenue beat(2)-12.32%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-5.07%
Min Revenue beat(4)-12.32%
Max Revenue beat(4)-1.65%
Revenue beat(8)0
Avg Revenue beat(8)-4.48%
Revenue beat(12)3
Avg Revenue beat(12)-2.34%
Revenue beat(16)7
Avg Revenue beat(16)-1.19%
PT rev (1m)2.26%
PT rev (3m)5.44%
EPS NQ rev (1m)-9.4%
EPS NQ rev (3m)-25.92%
EPS NY rev (1m)-8.11%
EPS NY rev (3m)-8.11%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-22.31%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.57 | ||
| Fwd PE | 7.49 | ||
| P/S | 0.48 | ||
| P/FCF | 8.18 | ||
| P/OCF | 4.27 | ||
| P/B | 2.84 | ||
| P/tB | 3.67 | ||
| EV/EBITDA | 5.2 |
EPS(TTM)10.95
EY15.21%
EPS(NY)9.61
Fwd EY13.35%
FCF(TTM)8.79
FCFY12.22%
OCF(TTM)16.84
OCFY23.4%
SpS148.44
BVpS25.32
TBVpS19.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 29.42% | ||
| ROCE | 17.88% | ||
| ROIC | 12.27% | ||
| ROICexc | 14.54% | ||
| ROICexgc | 16.2% | ||
| OM | 7.94% | ||
| PM (TTM) | 5.02% | ||
| GM | 23.97% | ||
| FCFM | 5.92% |
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-Score5
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 4.84 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 96.58% | ||
| Cap/Sales | 5.42% | ||
| Interest Coverage | 7.94 | ||
| Cash Conversion | 83.7% | ||
| Profit Quality | 118.05% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.69 |
F-Score5
WACC6%
ROIC/WACC2.05
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)46.13%
EPS 3Y-6.61%
EPS 5Y-6.04%
EPS Q2Q%58.87%
EPS Next Y-4.31%
EPS Next 2Y10.58%
EPS Next 3Y11.44%
EPS Next 5Y6.28%
Revenue 1Y (TTM)-26.66%
Revenue growth 3Y5.56%
Revenue growth 5Y-2.24%
Sales Q2Q%-4.09%
Revenue Next Year-2.8%
Revenue Next 2Y-0.46%
Revenue Next 3Y0.65%
Revenue Next 5Y1.37%
EBIT growth 1Y51.84%
EBIT growth 3Y10.88%
EBIT growth 5Y-2.84%
EBIT Next Year72.66%
EBIT Next 3Y30.2%
EBIT Next 5Y16.66%
FCF growth 1Y110038%
FCF growth 3Y117.31%
FCF growth 5Y-3.93%
OCF growth 1Y49.43%
OCF growth 3Y14.1%
OCF growth 5Y-7.86%