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Continental AG (CTTAY)
OTHER OTC:CTTAY
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Continental AG
(OTC:CTTAY)
Rating:64Neutral
Price Target:
$9.00
▲(3.81% Upside)
Continental AG (CTTAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.28B
Dividend Yield0.49%
Average Volume (3M)1.17K
Price to Earnings (P/E)10.5
Beta (1Y)0.66
Revenue Growth-26.34%
EPS Growth85.55%
CountryUS
Employees96,426
SectorConsumer Cyclical
Sector Strength71
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.29
Shares Outstanding2,000,059,800
10 Day Avg. Volume1,643
30 Day Avg. Volume1,171
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit3.11
Enterprise Value/Ebitda5.55
Forecast
1Y Price Target
$9.00Price Target Upside3.81% Upside
Rating ConsensusHold
Number of Analyst Covering1
Continental AG Business Overview & Revenue Model
Company DescriptionContinental 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 company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel and specialist vehicles, bicycles, and motor vehicles, as well as digital tire monitoring and management systems. In addition, the company develops and manufactures cross-material, environmentally friendly, and intelligent products and systems for automotive, railway engineering, mining, agriculture, and other industries, as well as provides contract manufacturing services. It sells its products through 944 company owned tire outlets and approximately 5,200 franchise locations The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.
How the Company Makes MoneyContinental AG generates revenue through multiple key streams. The primary source is the sale of tires, which includes passenger car tires, commercial vehicle tires, and specialty tires. The automotive technology segment contributes significantly by providing advanced electronics, sensor systems, and software solutions that enhance vehicle performance and safety. Additionally, Continental earns revenue from its industrial business, which offers various products and services related to automation and drive technology. The company has established strategic partnerships with automotive manufacturers and technology firms to drive innovation and expand its market reach. Its investment in research and development allows Continental to stay at the forefront of technological advancements, thereby attracting more clients and increasing sales.
Continental AG Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: 2.73%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable achievements in the automotive segment and strong cash flow performance, but these were offset by challenges in the tire and ContiTech segments, as well as overall revenue decline.Q2-2025 Updates
Positive Updates
Automotive Segment Improvement
Automotive sales improved significantly to the upper range of the guidance with a 4% increase, driven by commercial and operational efforts and significant fixed cost reductions.
Order Intake and Technological Advancements
Automotive segment secured incoming orders of EUR 5.7 billion, with significant wins in autonomous mobility and integrated brake systems, showcasing technological advancements and market acceptance.
Strong Cash Flow Performance
The first half of 2025 showed a EUR 550 million improvement in free cash flow compared to the prior year, indicating strong cash flow performance amid challenging conditions.
Negative Updates
Tire Segment Challenges
The tire segment was significantly impacted by FX and tariffs, with a low three-digit million euro range headwind, and was not fully mitigated in Q2.
Revenue Decline
Group sales declined slightly by 0.4% year-over-year to EUR 9.6 billion, impacted by FX and weaker markets, particularly in the tire and ContiTech segments.
ContiTech Weak Volumes
ContiTech experienced continued weak volumes in both automotive and industry sectors, with an organic decline of 1.4%.
Company Guidance
During the Continental AG Analyst and Investor Call for H1 2025, the company provided detailed financial guidance and discussed several key metrics. The Q2 2025 results highlighted an EBIT effect of EUR 235 million, equivalent to 240 basis points in the automotive sector, due to the application of IFRS 5 accounting following an automobile spin-off. The company's sales dropped from EUR 10 billion to EUR 9.6 billion, primarily impacted by a 3.4% FX headwind, mainly from the U.S. dollar. Organic sales in a highly volatile environment were down 0.4%. Automotive profitability improved to the upper guidance range of 4%, driven by significant fixed cost reductions. The tire segment experienced strong FX headwinds, with a profitability drag in the low 3-digit million euro range from FX and tariffs. For the group, like-for-like earnings without IFRS 5 adjustments amounted to EUR 595 million at a 6.2% margin. The company confirmed its guidance for 2025, expecting reduced tariff headwinds in the second half of the year, while also targeting an equity ratio above 30% post-spin-off.Continental AG Financial Statement Overview
Summary
Continental AG's financial health reflects resilience with stable profitability and a balanced capital structure. However, the company faces challenges in maintaining consistent revenue growth and maximizing free cash flow.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.68
Positive
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.72
Positive
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.64
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 39.72B | 41.42B | 39.41B | 33.77B | 37.72B |
| Gross Profit | 8.80B | 8.81B | 8.31B | 7.74B | 8.59B |
| EBITDA | 4.55B | 4.21B | 4.01B | 4.11B | 2.46B |
| Net Income | 1.17B | 1.16B | 112.20M | 1.44B | -918.80M |
Balance Sheet | |||||
| Total Assets | 36.97B | 37.75B | 37.93B | 35.84B | 39.64B |
| Cash, Cash Equivalents and Short-Term Investments | 2.72B | 2.92B | 2.44B | 2.00B | 2.64B |
| Total Debt | 6.88B | 7.16B | 7.67B | 6.24B | 7.32B |
| Total Liabilities | 22.17B | 23.63B | 24.19B | 23.20B | 27.00B |
| Stockholders Equity | 14.35B | 13.68B | 13.26B | 12.19B | 12.26B |
Cash Flow | |||||
| Free Cash Flow | 980.00M | 1.18B | 126.30M | 1.08B | 587.90M |
| Operating Cash Flow | 2.93B | 3.33B | 2.30B | 2.95B | 2.71B |
| Investing Cash Flow | -1.82B | -2.17B | -2.20B | -1.58B | -1.84B |
| Financing Cash Flow | -1.07B | -1.13B | 653.50M | -1.16B | -1.14B |
Continental AG Technical Analysis
Positive
8.67
Price Trends
8.72
Negative
8.19
Positive
7.43
Positive
Market Momentum
-0.07
Positive
49.10
Neutral
49.98
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 8.67 is below the 20-day moving average (MA) of 8.68, below the 50-day MA of 8.72, and above the 200-day MA of 7.43, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 49.98 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.32B | 11.68 | 9.51% | 3.08% | -3.12% | -8.23% | |
75 Outperform | $8.59B | 12.23 | 29.99% | 2.40% | -0.98% | 21.64% | |
72 Outperform | $8.69B | 42.86 | 3.66% | 1.06% | -2.12% | -69.42% | |
71 Outperform | $15.61B | 11.88 | 15.52% | ― | -2.47% | -43.12% | |
64 Neutral | $17.28B | 10.53 | 14.83% | 0.49% | -26.34% | 85.55% | |
61 Neutral | $11.46B | ― | -22.06% | ― | 4.07% | -1211.52% | |
56 Neutral | HK$25.39B | 4.88 | -2.69% | 5.70% | -0.49% | -53.32% |
* Consumer Cyclical Sector Average
Performance Comparison
CTTAY
Continental AG
8.67
2.38
37.84%
ALV
Autoliv
115.99
21.53
22.79%
BWA
BorgWarner
41.57
10.27
32.81%
APTV
Aptiv
71.70
4.72
7.05%
LEA
Lear
103.23
-3.46
-3.24%
MBLY
Mobileye Global, Inc. Class A
14.25
0.33
2.37%
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.