Continental Aktiengesellschaft (DE:CON)
XETRA:CON
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Continental Aktiengesellschaft
(XETRA:CON)
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Rating:61Neutral
Price Target:
€75.00
▲(10.82% Upside)
Action:Reiterated
Date:05/09/26
The score is driven by resilient cash generation and manageable leverage, but capped by weakened profitability (thin EBIT and a net loss). Technicals are trend-positive but overbought, while valuation and dividend support are reasonable. Earnings-call guidance suggests margin improvement and solid free cash flow, tempered by ContiTech weakness and elevated FX/tariff and geopolitical uncertainty.
Positive Factors
Strong cash generation
Sustained, positive free cash flow provides durable financial flexibility: it funds capex, transformation costs, dividends and debt reduction even when GAAP earnings are weak. Over 2–6 months this cash conversion supports deleveraging and execution of strategic portfolio moves.
Negative Factors
Weakened profitability
Operating profitability has eroded, producing a thin EBIT buffer and negative net income that weakens return on capital. Persistently low margins limit the firm’s ability to self-fund initiatives and increase reliance on FCF to cover obligations if revenues remain pressured.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained, positive free cash flow provides durable financial flexibility: it funds capex, transformation costs, dividends and debt reduction even when GAAP earnings are weak. Over 2–6 months this cash conversion supports deleveraging and execution of strategic portfolio moves.
Read all positive factors
Continental Aktiengesellschaft (CON) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€13.72B
Dividend Yield2.88%
Average Volume (3M)604.04K
Price to Earnings (P/E)14.9
Beta (1Y)1.11
Revenue Growth-44.98%
EPS Growth-102.56%
CountryDE
Employees96,426
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.17
Shares Outstanding200,005,980
10 Day Avg. Volume526,712
30 Day Avg. Volume604,041
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)3.46
Price to Sales (P/S)0.69
P/FCF Ratio12.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€73.56Price Target Upside8.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)6.46
Revenue Forecast (FY)€18.27B
Continental Aktiengesellschaft 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 products and solutions to automotive OEMs and to the replacement (aftermarket) channel. A major revenue stream comes from its tire business: it sells passenger, truck, and other specialty tires to vehic...
Continental Aktiengesellschaft Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Neutral
The call described a mixed but resilient performance: strong operational and cash generation in the Tires business (outperforming in Q4, margin expansion, UHP mix gains), improvement in leverage and a shareholder‑friendly dividend proposal. However, material negatives remain — ContiTech underperformance, large one‑off special items that depressed NIAT, significant FX and tariff headwinds, Q1 volume risk and geopolitical/energy cost uncertainty. Management presented credible mitigation plans and a clear path to complete the transformation, but near‑term risks and carve‑out costs keep the picture balanced.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 Weakness and Volume Pressure
ContiTech experienced significant weakness: organic sales decline of 3.3% for the year and Q4 organic sales decline of 5.2%; Q4 adjusted EBIT margin before IFRS 5 was weak (c. 2% reported) and the division faced delayed market recovery, especially in APAC (China) and North America.
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
The company guided 2026 group sales of around EUR 17.3–18.9 billion with an adjusted EBIT margin of 11.0–12.5%, explicitly reflecting currently effective tariffs and FX at current levels (but not potential input‑cost or Middle East/Iran impacts). Tires are guided to EUR 13.2–14.2 billion in sales with an adjusted EBIT margin of 13.0–14.5%; ContiTech is guided to EUR 4.2–4.8 billion with margins of 7.0–8.5% (including OESL at ~EUR 117 million sales). Adjusted free cash flow is expected at EUR 0.8–1.2 billion, CapEx is targeted at roughly 7% (of sales), PPA is expected to fall to about EUR 25 million, other special effects around EUR 250 million, and the tax rate is assumed to be ~24%; the company characterizes the tire market as no to very low growth and OE production as slightly down.Continental Aktiengesellschaft Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.17B | 19.68B | 20.08B | 41.42B | 39.41B | 33.77B |
| Gross Profit | 5.12B | 5.11B | 5.30B | 8.81B | 7.58B | 7.74B |
| EBITDA | 1.95B | 1.91B | 3.23B | 4.21B | 4.01B | 4.29B |
| Net Income | -33.00M | -165.00M | 1.17B | 1.16B | 66.60M | 1.44B |
Balance Sheet | ||||||
| Total Assets | 17.48B | 17.79B | 36.97B | 37.75B | 37.93B | 35.84B |
| Cash, Cash Equivalents and Short-Term Investments | 1.50B | 1.57B | 2.97B | 2.92B | 2.44B | 2.00B |
| Total Debt | 6.61B | 6.83B | 7.21B | 7.17B | 7.67B | 6.24B |
| Total Liabilities | 12.88B | 13.63B | 22.17B | 23.63B | 24.19B | 23.20B |
| Stockholders Equity | 4.37B | 3.93B | 14.35B | 13.68B | 13.26B | 12.19B |
Cash Flow | ||||||
| Free Cash Flow | 1.31B | 1.12B | 996.00M | 1.18B | 126.30M | 1.08B |
| Operating Cash Flow | 2.37B | 2.19B | 2.93B | 3.33B | 2.30B | 2.95B |
| Investing Cash Flow | -1.35B | -1.42B | -1.82B | -2.17B | -2.20B | -1.58B |
| Financing Cash Flow | -600.00M | -135.00M | -1.07B | -1.13B | 653.50M | -1.16B |
Continental Aktiengesellschaft Technical Analysis
Positive
67.68
Price Trends
62.52
Positive
64.31
Positive
61.29
Positive
Market Momentum
1.31
Positive
60.04
Neutral
42.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:CON, the sentiment is Positive. The current price of 67.68 is above the 20-day moving average (MA) of 66.19, above the 50-day MA of 62.52, and above the 200-day MA of 61.29, indicating a bullish trend. The MACD of 1.31 indicates Positive momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 42.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:CON.
Continental Aktiengesellschaft Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | €895.18M | 9.06 | 11.98% | 5.70% | -4.59% | -8.81% | |
70 Outperform | €16.35B | 25.59 | 17.95% | 1.85% | -0.90% | 29.49% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | €13.72B | 14.90 | -0.76% | 2.88% | -44.98% | -102.56% | |
61 Neutral | €376.99M | 5.33 | 0.83% | 3.51% | -6.42% | ― | |
54 Neutral | €8.04B | 62.30 | 3.07% | 1.17% | -2.77% | -69.52% | |
54 Neutral | €9.32B | 27.80 | 7.96% | 3.15% | 16.50% | 57.62% |
* Consumer Cyclical Sector Average
DE:CON
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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.