Continental AG (CTTAY)
OTHER OTC:CTTAY
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Continental AG
(OTC:CTTAY)
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Rating:56Neutral
Price Target:
$7.00
▼(-5.91% Downside)
Action:ReiteratedDate:03/21/26
The score is driven primarily by mixed fundamentals: durable cash generation and manageable leverage are outweighed by the sharp 2025 profitability downturn. Technicals are notably weak (below major moving averages with negative MACD), while valuation is helped by a high dividend yield but constrained by negative earnings. The latest earnings call adds a cautiously supportive outlook via 2026 margin/FCF guidance, tempered by ContiTech underperformance and significant FX/tariff uncertainty.
Positive Factors
Consistent cash generation
Continental’s persistent positive operating cash flow and recurring positive free cash flow provide durable internal funding for capex, dividends and debt reduction. This cash generation supports strategic flexibility and resilience through cyclical auto demand shifts over the next 2–6 months.
Negative Factors
Sharp 2025 profitability deterioration
The large revenue contraction and earnings reversal in 2025 signal cyclically sensitive demand and margin pressure. This volatility weakens near-term return metrics and increases execution risk for restoring prior profitability levels within a 2–6 month horizon.
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Positive Factors
Negative Factors
Consistent cash generation
Continental’s persistent positive operating cash flow and recurring positive free cash flow provide durable internal funding for capex, dividends and debt reduction. This cash generation supports strategic flexibility and resilience through cyclical auto demand shifts over the next 2–6 months.
Read all positive factors
Continental AG (CTTAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.36B
Dividend Yield0.42%
Average Volume (3M)1.37K
Price to Earnings (P/E)200.3
Beta (1Y)0.70
Revenue Growth-37.32%
EPS Growth-79.78%
CountryUS
Employees96,426
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.03
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 Cap1.20
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit3.62
Enterprise Value/Ebitda9.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.72
Revenue Forecast (FY)$21.11B
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 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 ...
Continental AG Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 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
52
Neutral
Balance Sheet
61
Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.68B | 39.72B | 41.42B | 39.41B | 33.77B |
| Gross Profit | 5.11B | 8.80B | 8.81B | 8.31B | 7.74B |
| EBITDA | 1.91B | 4.55B | 4.21B | 4.01B | 4.11B |
| Net Income | -165.00M | 1.17B | 1.16B | 112.20M | 1.44B |
Balance Sheet | |||||
| Total Assets | 17.79B | 36.97B | 37.75B | 37.93B | 35.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.57B | 2.72B | 2.92B | 2.44B | 2.00B |
| Total Debt | 6.82B | 6.88B | 7.16B | 7.67B | 6.24B |
| Total Liabilities | 13.63B | 22.17B | 23.63B | 24.19B | 23.20B |
| Stockholders Equity | 3.93B | 14.35B | 13.68B | 13.26B | 12.19B |
Cash Flow | |||||
| Free Cash Flow | 1.08B | 980.00M | 1.18B | 126.30M | 1.08B |
| Operating Cash Flow | 2.11B | 2.93B | 3.33B | 2.30B | 2.95B |
| Investing Cash Flow | -1.36B | -1.82B | -2.17B | -2.20B | -1.58B |
| Financing Cash Flow | -129.67M | -1.07B | -1.13B | 653.50M | -1.16B |
Continental AG Technical Analysis
Positive
7.44
Price Trends
7.78
Negative
7.73
Negative
7.34
Positive
Market Momentum
-0.12
Negative
58.78
Neutral
85.62
Negative
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 above the 20-day moving average (MA) of 7.07, below the 50-day MA of 7.78, and above the 200-day MA of 7.34, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 85.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.33B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.60B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
69 Neutral | $8.26B | 12.37 | 29.57% | 2.60% | 0.84% | 26.17% | |
62 Neutral | $11.33B | 35.20 | 4.80% | 1.24% | 0.08% | -83.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $12.94B | 101.80 | 1.78% | ― | 2.16% | -85.91% | |
56 Neutral | $15.36B | 200.26 | -2.42% | 0.42% | -37.32% | -79.78% |
* Consumer Cyclical Sector Average
CTTAY
Continental AG
7.70
2.63
51.85%
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VC
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32.70%
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.