Education
About Us
Working with TipRanks
Follow Us
Continental Aktiengesellschaft (DE:CON)
XETRA:CON
RESEARCH TOOLSreports
Top Page
Continental Aktiengesellschaft
(XETRA:CON)
Rating:69Neutral
Price Target:
€80.00
▲(10.01% Upside)
Positive Factors
Earnings Potential
Tires adjusted EBIT margin forecast at the lower end suggests a potential 5% upside against the current consensus.
Revenue Outlook
Analyst anticipates higher replacement demand and positive price/mix, suggesting Tires revenue could hit the upper half of the forecast range.
Negative Factors
Earnings Guidance
CON's FY25 group adjusted EBIT guidance indicates about 8% downside compared to current consensus estimates, reflecting a soft revenue and margin outlook in Automotive.
Production Challenges
ContiTech faces ongoing challenges due to weak light vehicle production and muted industrial demand.
Continental Aktiengesellschaft (CON) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$14.70B
Dividend Yield3.44%
Average Volume (3M)295.80K
Price to Earnings (P/E)9.9
Beta (1Y)1.11
Revenue Growth-26.66%
EPS Growth82.24%
CountryDE
Employees96,426
SectorConsumer Cyclical
Sector Strength72
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.53
Shares Outstanding200,005,980
10 Day Avg. Volume344,895
30 Day Avg. Volume295,803
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/Revenue0.62
Enterprise Value/Gross Profit2.65
Enterprise Value/Ebitda4.74
Forecast
1Y Price Target
$81.86Price Target Upside12.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Continental Aktiengesellschaft 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 generates revenue through multiple key streams. Primarily, the company earns money from the sale of tires for passenger vehicles, commercial vehicles, and specialty applications. In addition to tire sales, the automotive segment contributes significantly to revenue through the supply of electronic systems, brake systems, and powertrain technologies to automotive manufacturers. Continental also engages in the development and sale of software solutions for vehicle connectivity and autonomous driving, which are increasingly important in the automotive industry. Strategic partnerships with major automakers and technology firms enhance its market position and contribute to revenue through collaborative projects, R&D, and joint ventures. Overall, Continental's diversified product portfolio and focus on innovation in mobility solutions help it maintain a strong financial performance.
Continental Aktiengesellschaft Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: -0.33%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive developments in the automotive segment and significant progress in the spin-off plans, coupled with effective cost and cash flow management. However, these were counterbalanced by challenges related to unfavorable FX rates, tariffs, raw material costs, and ongoing legal proceedings with BMW.Q2-2025 Updates
Positive Updates
Automotive Segment Improvement
The automotive segment significantly improved to the upper range of guidance with 4% growth, driven by fixed cost reductions and commercial efforts. Profitability also improved, which was reflected in a reduced margin seasonality.
Spin-Off Progress
Continental AG is fully on track with the automobile spin-off, with a targeted listing date of September 18. This is expected to drive transformation and enhance operational focus.
Strong Operational Performance in Tires
Despite FX and tariff headwinds, the Tire segment showed good operational performance with a strong price mix of 3.2%, driven by mix improvements and regional trends.
Improved Cash Flow Management
In the first half of 2025, Continental achieved a free cash flow improvement of over EUR 400 million compared to the prior year, highlighting effective cash management.
Negative Updates
Negative FX Impact
The company faced a negative FX impact of over 3.4% due to the depreciation of various currencies against the euro, heavily affecting sales and profitability.
Tariff and Raw Material Challenges
The tire segment was severely affected by tariffs and raw material costs, with a net headwind from these factors in the low 3-digit million euro range.
Weak Market Environment for ContiTech
ContiTech experienced weak volumes and a decline in organic sales by 1.4%, with slight improvements in the industry sector not sufficient to counterbalance the volume losses.
Lawsuit with BMW
There is an ongoing lawsuit with BMW regarding warranty claims, which could potentially have financial implications for the spun-off automobile entity.
Company Guidance
During the Continental AG Analyst and Investor Call for H1 2025, the company provided guidance highlighting several key financial metrics and strategic updates. The call detailed an EBIT effect of EUR 235 million attributed to IFRS 5 accounting changes due to an upcoming automobile spin-off, which also positively impacted net income. Automotive sales showed a slight decline from EUR 10 billion to EUR 9.6 billion, with an organic sales decrease of 0.4% amidst challenging currency effects, notably a 3.4% impact from the U.S. dollar exchange rate. The automotive segment improved its profitability to 4%, driven by commercial efforts and cost reductions, while the tire segment faced strong FX headwinds, affecting profitability despite a strong price mix. ContiTech experienced weak volumes but showed slight sequential improvements. The company confirmed its full-year guidance and mentioned ongoing spin-off activities, targeting an automobile listing in Frankfurt on September 18. Net income increased to EUR 506 million, and a focus on cash flow resulted in a EUR 550 million improvement over the prior year. The company also noted significant headwinds from tariffs and FX, amounting to a low 3-digit million euro range, but expects mitigation measures to reduce these impacts in the second half of the year.Continental Aktiengesellschaft Financial Statement Overview
Summary
Continental Aktiengesellschaft exhibits stable profitability with a strong capital structure. The company manages its debt levels well, with a balanced debt-to-equity ratio and a robust operating cash flow to net income ratio. However, volatility in revenue and free cash flow presents some challenges.Income Statement
Continental Aktiengesellschaft shows a stable gross profit margin around 22-23% in recent years. Net profit margin has improved significantly since 2020, reaching 2.9% in 2024. However, revenue has fluctuated, with a decline from 2023 to 2024. EBIT and EBITDA margins have remained modest, reflecting some operational challenges.68
Positive
Balance Sheet
The company maintains a balanced debt-to-equity ratio of approximately 0.48 in 2024, indicating prudent leverage management. The equity ratio stands at 38.8%, suggesting a stable capital structure. Return on equity remains moderate at 8.1%, signaling stable returns for shareholders.74
Positive
Cash Flow
Operating cash flow has been relatively consistent, but free cash flow has seen fluctuations, with a significant drop in 2024. The operating cash flow to net income ratio is robust at 2.51 for 2024, indicating strong cash generation relative to net income. However, free cash flow growth has been inconsistent.65
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 | 4.43B | 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 | 2.97B | 2.92B | 2.44B | 2.00B | 2.64B |
| Total Debt | 6.91B | 7.17B | 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 | 996.00M | 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 Aktiengesellschaft Technical Analysis
Negative
72.72
Price Trends
75.18
Negative
71.83
Positive
67.33
Positive
Market Momentum
-0.64
Positive
40.80
Neutral
36.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:CON, the sentiment is Negative. The current price of 72.72 is below the 20-day moving average (MA) of 74.82, below the 50-day MA of 75.18, and above the 200-day MA of 67.33, indicating a neutral trend. The MACD of -0.64 indicates Positive momentum. The RSI at 40.80 is Neutral, neither overbought nor oversold. The STOCH value of 36.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:CON.
Continental Aktiengesellschaft Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $14.70B | 9.87 | 14.83% | 3.44% | -26.66% | 82.24% | |
61 Neutral | $16.99B | 10.66 | -7.51% | 3.25% | 1.53% | -15.49% | |
| ― | €290.82M | ― | -23.03% | ― | ― | ― | |
| ― | €9.72B | 50.53 | 6.30% | ― | ― | ― | |
| ― | €714.51M | 14.97 | 10.72% | ― | ― | ― | |
| ― | €4.58B | 21.23 | -24.27% | ― | ― | ― | |
65 Neutral | €14.80B | 35.07 | 14.67% | 1.91% | -1.78% | -30.46% |
* Consumer Cyclical Sector Average
Performance Comparison
DE:CON
Continental Aktiengesellschaft
72.72
16.26
28.79%
GB:0MG5
ElringKlinger
4.59
0.38
9.03%
GB:0R3U
Hella KGaA Hueck & Co
87.50
2.34
2.75%
GB:0O4N
SAF-HOLLAND SE
16.86
-0.24
-1.40%
GB:0RBK
Schaeffler
4.85
0.53
12.27%
DE:KBX
Knorr-Bremse AG
91.80
22.81
33.06%
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.