Continental AG (CTTAY)
OTHER OTC:CTTAY
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Continental AG
(OTC:CTTAY)
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Rating:62Neutral
Price Target:
$9.00
▲(20.97% Upside)
Action:Reiterated
Date:05/09/26
The score is driven by resilient cash flow and a serviceable balance sheet despite weak reported earnings, alongside a constructive technical setup and reasonable valuation. The earnings outlook is cautiously supportive, but sizable one-offs, ContiTech underperformance, and FX/tariff-driven uncertainty keep the overall score in the low-to-mid 60s.
Positive Factors
Tires business strength
Continental’s tire segment generates above‑average margins and steady organic growth, showing durable aftermarket and premium (UHP) demand. High margins and mix improvement support predictable cash and profit contribution across cycles and strengthen core competitive positioning.
Negative Factors
ContiTech underperformance
Prolonged weakness in ContiTech erodes group profitability and consumes management bandwidth and capital for transformation. Low margins and declining organic sales create a multi‑quarter drag until divestment or turnaround is completed, leaving earnings more volatile.
Read all positive and negative factors
Positive Factors
Negative Factors
Tires business strength
Continental’s tire segment generates above‑average margins and steady organic growth, showing durable aftermarket and premium (UHP) demand. High margins and mix improvement support predictable cash and profit contribution across cycles and strengthen core competitive positioning.
Read all positive factors
Continental AG (CTTAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.80B
Dividend Yield0.42%
Average Volume (3M)1.37K
Price to Earnings (P/E)14.8
Beta (1Y)0.76
Revenue Growth-40.77%
EPS Growth-104.04%
CountryUS
Employees96,426
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.02
Shares Outstanding2,000,059,800
10 Day Avg. Volume0
30 Day Avg. Volume1,371
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)3.46
Price to Sales (P/S)0.69
P/FCF Ratio12.65
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit3.57
Enterprise Value/Ebitda9.37
Forecast
1Y Price Target
$83.68Price Target Upside1024.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.76
Revenue Forecast (FY)$21.42B
Continental AG Business Overview & Revenue Model
Company Description
Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The compa...
How the Company Makes Money
Continental primarily makes money by selling automotive components, systems, and tires, with revenue largely tied to global vehicle production and the replacement-tire market. A major revenue stream is supplying original equipment (OE) parts and s...
Continental AG Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral: The call presents material operational and financial positives — notably strong tire performance, robust Q4 cash flow, reduced net debt and a shareholder-friendly dividend proposal — but these are offset by sizeable nonrecurring charges (~EUR 1.7 billion), clear underperformance and transformation-related costs at ContiTech, regional FX/tariff headwinds, and near-term volume weakness (Q1). Management outlines sensible mitigation actions and a path to recovery for ContiTech, but significant uncertainties (energy/raw material prices, currency volatility, and timing/size of ContiTech sale proceeds) leave the outlook measured and guidance ranges wide.Positive Updates
Group Sales and Organic Growth
Full-year 2025 sales of EUR 19.7 billion with organic growth of 0.8% despite a challenging environment.
Negative Updates
ContiTech Sales and Margin Weakness
ContiTech faced continued weakness: full-year organic negative impact ~3.3% and Q4 organic sales declined 5.2%; ContiTech adjusted EBIT margin remained depressed (reported ~2% in commentary; ex-OESL ~7% for 2025 but Q4 margin ~4.6% excluding OESL).
Read all updates
Q4-2025 Updates
Positive
Negative
Group Sales and Organic Growth
Full-year 2025 sales of EUR 19.7 billion with organic growth of 0.8% despite a challenging environment.
Read all positive updates
Company Guidance
Continental’s 2026 guidance expects group sales of €17.3–18.9bn with an adjusted EBIT margin of 11.0–12.5%; Tires sales are guided at €13.2–14.2bn with an adjusted EBIT margin of 13.0–14.5%, and ContiTech sales at €4.2–4.8bn with margins of 7.0–8.5% (including OESL, which contributed €117m sales at slightly above breakeven). Adjusted free cash flow is forecast at €0.8–1.2bn, CapEx around 7% of sales, PPA roughly €25m, other special effects about €250m (including OESL deconsolidation and expected sale costs), and an anticipated tax rate of ~24%. The guidance is based on currently effective tariffs and FX at today’s levels and does not yet reflect potential input‑cost or geopolitical (Middle East/Iran) impacts; management flags key uncertainties from USD weakness, volume/tariff volatility and raw‑material movement.Continental AG Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.24B | 19.68B | 39.72B | 41.42B | 39.41B | 33.77B |
| Gross Profit | 5.14B | 5.11B | 8.80B | 8.81B | 8.31B | 7.74B |
| EBITDA | 1.96B | 1.91B | 4.55B | 4.21B | 4.01B | 4.11B |
| Net Income | -29.71M | -165.00M | 1.17B | 1.16B | 112.20M | 1.44B |
Balance Sheet | ||||||
| Total Assets | 17.50B | 17.79B | 36.97B | 37.75B | 37.93B | 35.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.50B | 1.57B | 2.72B | 2.92B | 2.44B | 2.00B |
| Total Debt | 6.62B | 6.82B | 6.88B | 7.16B | 7.67B | 6.24B |
| Total Liabilities | 12.90B | 13.63B | 22.17B | 23.63B | 24.19B | 23.20B |
| Stockholders Equity | 4.38B | 3.93B | 14.35B | 13.68B | 13.26B | 12.19B |
Cash Flow | ||||||
| Free Cash Flow | 1.31B | 1.08B | 980.00M | 1.18B | 126.30M | 1.08B |
| Operating Cash Flow | 2.33B | 2.11B | 2.93B | 3.33B | 2.30B | 2.95B |
| Investing Cash Flow | -1.35B | -1.36B | -1.82B | -2.17B | -2.20B | -1.58B |
| Financing Cash Flow | -569.45M | -129.67M | -1.07B | -1.13B | 653.50M | -1.16B |
Continental AG Technical Analysis
Neutral
7.44
Price Trends
7.30
Positive
7.59
Positive
7.25
Positive
Market Momentum
0.17
Positive
49.01
Neutral
22.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTTAY, the sentiment is Neutral. The current price of 7.44 is below the 20-day moving average (MA) of 7.67, above the 50-day MA of 7.30, and above the 200-day MA of 7.25, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 49.01 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CTTAY.
Continental AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $12.68B | 11.51 | 6.34% | 1.24% | 2.36% | 34.03% | |
74 Outperform | $6.53B | 8.78 | 10.41% | 2.63% | 2.86% | 17.30% | |
74 Outperform | $2.90B | 19.91 | 11.08% | 0.57% | -2.04% | -43.19% | |
72 Outperform | $8.67B | 13.85 | 27.78% | 2.60% | 6.14% | 7.30% | |
62 Neutral | $15.80B | 14.77 | -0.76% | 0.42% | -40.77% | -104.04% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $11.22B | 16.63 | 3.90% | ― | 5.20% | -71.83% |
* Consumer Cyclical Sector Average
CTTAY
Continental AG
7.62
0.96
14.45%
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BWA
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APTV
Aptiv
52.57
-4.60
-8.05%
LEA
Lear
128.78
37.56
41.17%
VC
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24.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.