Continental AG (CTTAY) AI Stock Analysis

• Market Cap: $15.55B
• Dividend Yield: 0.42%
• Average Volume (3M): 1.37K
• Price to Earnings (P/E): 70.5
• Beta (1Y): 0.64
• Revenue Growth: -37.32%
• EPS Growth: -79.78%
• Country: US
• Employees: 96,426
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.44
• Shares Outstanding: 2,000,059,800
• 10 Day Avg. Volume: 4,114
• 30 Day Avg. Volume: 1,371
• PEG Ratio: 10.53
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 13.03
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 3.33
• Enterprise Value/Ebitda: 7.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.65
• Revenue Forecast (FY): $23.01B

• Rating: 67 Neutral
• Price Target: $8.50 ▲(14.25% Upside)

Continental AG's stock score is primarily driven by its recovering financial performance and positive technical indicators. The earnings call provided mixed insights, with strategic successes offset by challenges in certain sectors. The high P/E ratio suggests overvaluation, which tempers the overall score.

Positive Factors

AUMOVIO Spin-Off Success

The AUMOVIO spin-off enhances Continental AG's focus on core operations, potentially leading to improved efficiency and strategic growth opportunities.

Strong Tire Business Performance

Continued growth in the tire segment underscores Continental's strong market position and ability to capitalize on demand in key regions, supporting revenue stability.

Improvement in ContiTech Earnings

Enhanced EBIT margins in ContiTech indicate operational efficiency and profitability improvements, strengthening the company's financial foundation.

Negative Factors

Negative Impact from Strategic Moves

Significant noncash impacts from strategic decisions could affect financial flexibility and necessitate adjustments in financial planning.

Challenges in Truck Tire Market

Ongoing challenges in the truck tire market could hinder revenue growth and require strategic adjustments to address demand fluctuations.

High Special Effects Impact

Increased special effects reflect transformation costs that may strain financial resources and impact profitability in the near term.

Continental AG Business Overview & Revenue Model

Company Description

Continental AG is a leading global automotive supplier headquartered in Hanover, Germany. The company operates in multiple sectors, primarily focusing on automotive technologies, rubber products, and industrial solutions. Continental's core products include tires, brake systems, powertrain and chassis components, and advanced automotive electronics. The company is dedicated to developing innovative solutions for mobility, enhancing safety, and improving environmental sustainability in the automotive industry.

How the Company Makes Money

Continental AG generates revenue through a diverse range of products and services across its various business units. The main revenue streams include the manufacture and sale of tires, which contribute significantly to its earnings, especially in the passenger car and commercial vehicle segments. Additionally, the company earns income from its automotive technology divisions, which provide electronic and software solutions for vehicle safety, connectivity, and automation. Strategic partnerships with major automotive manufacturers bolster its revenue, as Continental supplies essential components for both original equipment and aftermarket sales. The company's focus on research and development also enables it to innovate and capture emerging market trends, further enhancing its financial performance.

Continental AG Financial Statement Overview

Summary

Continental AG's financial health reflects a recovering trajectory post-pandemic, with stable profitability and a balanced capital structure. While the income statement shows resilience, the company faces challenges in maintaining consistent revenue growth and maximizing free cash flow. The balance sheet remains strong, supporting future growth opportunities.

Income Statement

Continental AG has shown resilience in its income statement with a stable gross profit margin and a recovering net income. However, the revenue growth rate has been volatile, with recent years showing fluctuations. The EBIT margin has improved but remains low. Overall profitability is recovering, but there is room for improvement.

Balance Sheet

The balance sheet of Continental AG indicates a solid equity base with a moderate debt-to-equity ratio. The return on equity (ROE) has shown improvement, reflecting better utilization of shareholder funds. The equity ratio suggests a balanced approach to financing, though there is potential to optimize the capital structure further.

Cash Flow

Cash flow analysis reveals positive trends in operating cash flow, although free cash flow growth has been erratic. The operating cash flow to net income ratio indicates efficient cash generation relative to net income. However, the free cash flow to net income ratio suggests challenges in translating income into free cash flow consistently.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.81B	39.72B	41.42B	39.41B	33.77B	37.72B
Gross Profit	6.18B	8.80B	8.81B	8.31B	7.74B	8.59B
EBITDA	2.79B	4.55B	4.21B	4.01B	4.11B	2.46B
Net Income	248.00M	1.17B	1.16B	112.20M	1.44B	-918.80M
Balance Sheet
Total Assets	18.59B	36.97B	37.75B	37.93B	35.84B	39.64B
Cash, Cash Equivalents and Short-Term Investments	1.44B	2.72B	2.92B	2.44B	2.00B	2.64B
Total Debt	0.00	6.88B	7.16B	7.67B	6.24B	7.32B
Total Liabilities	14.47B	22.17B	23.63B	24.19B	23.20B	27.00B
Stockholders Equity	3.91B	14.35B	13.68B	13.26B	12.19B	12.26B
Cash Flow
Free Cash Flow	1.73B	980.00M	1.18B	126.30M	1.08B	587.90M
Operating Cash Flow	3.18B	2.93B	3.33B	2.30B	2.95B	2.71B
Investing Cash Flow	-1.72B	-1.82B	-2.17B	-2.20B	-1.58B	-1.84B
Financing Cash Flow	-224.00M	-1.07B	-1.13B	653.50M	-1.16B	-1.14B

Continental AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTTAY, the sentiment is Positive. The current price of 7.44 is below the 20-day moving average (MA) of 7.47, above the 50-day MA of 7.31, and above the 200-day MA of 6.69, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 64.26 is Neutral, neither overbought nor oversold. The STOCH value of 74.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTTAY.

Continental AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALV	78 Outperform	$9.23B	12.55	31.09%	2.57%	0.84%	26.17%
LEA	75 Outperform	$5.89B	13.89	8.96%	2.71%	-1.90%	-13.86%
VC	73 Outperform	$2.84B	9.35	23.16%	0.53%	-4.03%	-39.51%
APTV	70 Outperform	$17.26B	62.55	3.25%	―	2.16%	-85.91%
CTTAY	67 Neutral	$15.55B	70.50	-1.10%	0.42%	-37.32%	-79.78%
BWA	65 Neutral	$9.65B	72.25	2.24%	1.26%	0.08%	-83.69%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Continental AG Corporate Events

Continental AG Reports Key Milestones Amidst Challenging Market

Continental AG, a leading German automotive parts manufacturer, specializes in tires, automotive components, and industrial products, with a focus on innovation and sustainability. In its third-quarter earnings report for 2025, Continental AG announced significant milestones in its strategic realignment, including the successful spin-off of Aumovio and the planned sale of its Original Equipment Solutions (OESL) business. Despite challenging market conditions, the company reported consolidated sales of €5.0 billion, maintaining the previous year’s level, with an organic growth of 2.6%. However, the adjusted EBIT saw a decline to €565 million, impacted by non-cash special effects from the spin-off and planned sale. The Tires group sector performed well, particularly in North America and Asia, while ContiTech improved its EBIT margin through cost-reduction measures. The company’s net income was negatively affected, resulting in a loss of €756 million, primarily due to the special effects related to the spin-off and sale. Looking ahead, Continental aims to enhance its free cash flow and expects slight improvements in its financial performance, despite ongoing economic uncertainties and trade barriers. The company remains focused on optimizing its operations and expanding its tire production capacity in Asia.