Continental Aktiengesellschaft (CON) AI Stock Analysis

• Market Cap: €13.21B
• Dividend Yield: 2.88%
• Average Volume (3M): 604.04K
• Price to Earnings (P/E): 53.3
• Beta (1Y): 0.97
• Revenue Growth: -38.10%
• EPS Growth: -75.32%
• Country: DE
• Employees: 96,426
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -3.78
• Shares Outstanding: 200,005,980
• 10 Day Avg. Volume: 526,712
• 30 Day Avg. Volume: 604,041
• PEG Ratio: 10.69
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 13.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €70.22
• Price Target Upside: 6.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €67.00 ▲(1.42% Upside)

The overall stock score of 58 reflects a mix of financial challenges and positive technical indicators. The company's high leverage and declining revenue weigh heavily on the score, while the positive technical trend and strategic achievements provide some support. The high P/E ratio suggests overvaluation, further impacting the score.

Positive Factors

Strong Tire Division Performance

The robust growth in the Tires division highlights Continental's strong market position and ability to capitalize on demand in key regions, supporting long-term revenue stability.

Successful Strategic Spin-off

The successful spin-off of AUMOVIO demonstrates effective strategic management, potentially unlocking shareholder value and allowing Continental to focus on core operations.

Improved Leverage Ratio

Improving leverage indicates better financial health and flexibility, reducing risk and enhancing the company's ability to invest in growth opportunities.

Negative Factors

High Leverage Concerns

High leverage can strain financial stability, limiting Continental's ability to navigate economic downturns and invest in growth, posing long-term risks.

Declining Revenue

Significant revenue decline suggests challenges in maintaining market share and competitiveness, potentially impacting long-term profitability and growth.

Profitability Challenges

Low profitability margins highlight operational inefficiencies and cost pressures, which could hinder Continental's ability to reinvest in innovation and expansion.

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 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 Money

Continental generates revenue primarily through the sale of automotive parts and systems, with key revenue streams coming from its Tire, Automotive Technologies, and ContiTech divisions. The Tire division sells tires for passenger vehicles, trucks, and specialty applications, contributing significantly to the company's revenue. The Automotive Technologies division focuses on electronic components, software solutions, and systems for vehicle safety and automation, capitalizing on the growing demand for electric and autonomous vehicles. Additionally, the ContiTech segment provides industrial products and solutions, including conveyor belts and fluid technologies. Continental's strong partnerships with major automotive manufacturers and investments in research and development to innovate new technologies further enhance its earnings potential. The company's revenue is also bolstered by its global footprint, allowing it to serve diverse markets and adapt to regional demands.

Continental Aktiengesellschaft Financial Statement Overview

Summary

Continental Aktiengesellschaft exhibits stable profitability and a strong capital structure. While revenue and free cash flow show some volatility, the company effectively manages its debt levels. Overall, it maintains a sound financial position with steady cash generation, despite some profitability 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.81B	39.72B	41.42B	39.41B	33.77B	37.72B
Gross Profit	6.18B	8.80B	8.81B	8.31B	7.74B	8.59B
EBITDA	2.78B	4.39B	4.21B	4.01B	4.11B	2.46B
Net Income	248.00M	1.17B	1.16B	112.20M	1.44B	-918.80M
Balance Sheet
Total Assets	18.59B	36.97B	37.75B	37.93B	35.84B	39.64B
Cash, Cash Equivalents and Short-Term Investments	1.44B	2.97B	2.92B	2.44B	2.00B	2.64B
Total Debt	7.59B	7.21B	7.17B	7.67B	6.24B	7.32B
Total Liabilities	14.47B	22.17B	23.63B	24.19B	23.20B	27.00B
Stockholders Equity	3.91B	14.35B	13.68B	13.26B	12.19B	12.26B
Cash Flow
Free Cash Flow	1.73B	996.00M	1.18B	126.30M	1.08B	587.90M
Operating Cash Flow	3.18B	2.93B	3.33B	2.30B	2.95B	2.71B
Investing Cash Flow	-1.72B	-1.82B	-2.17B	-2.20B	-1.58B	-1.84B
Financing Cash Flow	-224.00M	-1.07B	-1.13B	653.50M	-1.16B	-1.14B

Continental Aktiengesellschaft Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 66.06 is above the 20-day moving average (MA) of 65.65, above the 50-day MA of 64.43, and above the 200-day MA of 57.47, indicating a bullish trend. The MACD of 0.73 indicates Positive momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 64.47 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBX	70 Neutral	€15.23B	35.00	14.52%	1.85%	-1.77%	-28.68%
SFQ	66 Neutral	€677.28M	12.16	11.63%	5.70%	-12.01%	-28.10%
HLE	62 Neutral	€9.06B	56.08	5.24%	1.17%	<0.01%	-50.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CON	58 Neutral	€13.21B	53.27	-1.10%	2.88%	-38.10%	-75.32%
SHA0	52 Neutral	€7.48B	-5.31	-34.39%	3.15%	45.16%	-790.24%
ZIL2	46 Neutral	€270.86M	-2.35	-16.55%	3.51%	-6.21%	-995.53%

Continental Aktiengesellschaft Corporate Events

Continental AG Reports Q3 2025 Earnings Amid Strategic Shifts

Continental AG, a leading automotive and industrial supplier, operates primarily in the tire and technology sectors, providing innovative solutions to enhance mobility and industrial efficiency.