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Continental Aktiengesellschaft (DE:CON)
XETRA:CON
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Continental Aktiengesellschaft
(XETRA:CON)
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Rating:69Neutral
Price Target:
€62.00
▲(6.02% Upside)
Continental Aktiengesellschaft's overall stock score reflects stable financial performance and reasonable valuation. While technical indicators suggest a neutral trend, strategic progress in the automotive segment and a solid dividend yield enhance the stock's attractiveness. Challenges such as revenue decline and FX impacts are notable but are being managed effectively.
Positive Factors
Negative Factors
Continental Aktiengesellschaft (CON) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$11.70B
Dividend Yield3.25%
Average Volume (3M)530.77K
Price to Earnings (P/E)7.8
Beta (1Y)1.11
Revenue Growth-26.66%
EPS Growth82.24%
CountryDE
Employees96,426
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.92
Shares Outstanding200,005,980
10 Day Avg. Volume545,205
30 Day Avg. Volume530,767
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.85
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit3.03
Enterprise Value/Ebitda5.29
Forecast
1Y Price Target
$68.80Price Target Upside17.64% 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: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operational improvements and strategic progress, particularly in the Automotive segment and the upcoming spin-off. However, significant challenges were faced in terms of revenue decline, FX, and tariffs impacting profitability in the Tire and ContiTech segments.Q2-2025 Updates
Positive Updates
Automotive Segment Margin Improvement
Automotive segment achieved a 4% margin, with significant operational improvements and pricing strategies enhancing profitability.
ContiTech Fixed Cost Management
ContiTech successfully managed fixed costs, achieving a sequential improvement in profitability despite challenging conditions.
Tire Business Resilience
Despite FX and tariff headwinds, the tire business showed resilience with a strong mix and pricing strategy, managing a 3.2% price/mix effect.
Successful Order Intake in Automotive
Automotive segment secured EUR 5.7 billion in new orders, with key wins in autonomous mobility and integrated brake systems.
Automobile Spin-Off Progress
Automobile spin-off is on track for September 18, 2025, indicating strategic progress in business restructuring.
Negative Updates
Revenue Decline
Group sales decreased from EUR 10 billion to EUR 9.6 billion, with a significant FX impact of 3.4%.
FX and Tariff Challenges in Tires
Tire segment faced significant profitability challenges due to FX and tariff impacts, with net headwinds in the low 3-digit million euro range.
Weaker Performance in ContiTech
ContiTech experienced weak volumes and slight organic decline of 1.4%, affected by tariffs and FX.
Challenging Market Conditions
Overall market conditions remained volatile, affecting various segments including automobile and tire businesses.
Company Guidance
In the Continental AG Analyst and Investor Call for H1 2025, the company provided guidance indicating a resilient performance in a highly volatile market environment. The call highlighted an adjusted EBIT effect of EUR 235 million, equivalent to 240 basis points in the automotive sector, due to the application of IFRS 5 accounting for continued and discontinued operations. Organic sales for the group saw a minor decline of 0.4%, with automotive sales improving to the upper range of guidance at 4%. The company's net income increased from EUR 305 million to EUR 506 million, though this figure is impacted by the cessation of depreciation and amortization for certain operations. Continental confirmed an adjusted free cash flow improvement of over EUR 400 million compared to the prior year, despite challenges such as FX headwinds and tariffs. The company remains on track for the automotive spin-off, scheduled for September 18, 2025, and anticipates a leverage ratio of around 2x post-spin-off. The guidance for the full year remains unchanged, reflecting expectations of a strong cash flow performance in the second half of the year, despite ongoing restructuring and spin-off related costs.Continental Aktiengesellschaft Financial Statement Overview
Summary
Continental Aktiengesellschaft demonstrates stable profitability and a strong capital structure. Despite some volatility in revenue and free cash flow, the company effectively manages its debt levels and maintains steady cash generation. However, operational challenges are reflected in modest EBIT and EBITDA margins.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.69B | 39.72B | 41.42B | 39.41B | 33.77B | 37.72B |
| Gross Profit | 7.12B | 8.80B | 8.81B | 8.31B | 7.74B | 8.59B |
| EBITDA | 4.08B | 4.39B | 4.21B | 4.01B | 4.11B | 2.46B |
| Net Income | 1.49B | 1.17B | 1.16B | 112.20M | 1.44B | -918.80M |
Balance Sheet | ||||||
| Total Assets | 37.22B | 36.97B | 37.75B | 37.93B | 35.84B | 39.64B |
| Cash, Cash Equivalents and Short-Term Investments | 2.06B | 2.97B | 2.92B | 2.44B | 2.00B | 2.64B |
| Total Debt | 0.00 | 6.91B | 7.17B | 7.67B | 6.24B | 7.32B |
| Total Liabilities | 31.78B | 22.17B | 23.63B | 24.19B | 23.20B | 27.00B |
| Stockholders Equity | 5.06B | 14.35B | 13.68B | 13.26B | 12.19B | 12.26B |
Cash Flow | ||||||
| Free Cash Flow | 1.76B | 996.00M | 1.18B | 126.30M | 1.08B | 587.90M |
| Operating Cash Flow | 3.37B | 2.93B | 3.33B | 2.30B | 2.95B | 2.71B |
| Investing Cash Flow | -1.80B | -1.82B | -2.17B | -2.20B | -1.58B | -1.84B |
| Financing Cash Flow | 111.00M | -1.07B | -1.13B | 653.50M | -1.16B | -1.14B |
Continental Aktiengesellschaft Technical Analysis
Positive
58.48
Price Trends
56.53
Positive
57.04
Positive
53.40
Positive
Market Momentum
0.29
Negative
61.86
Neutral
85.79
Negative
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 58.48 is above the 20-day moving average (MA) of 56.24, above the 50-day MA of 56.53, and above the 200-day MA of 53.40, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 61.86 is Neutral, neither overbought nor oversold. The STOCH value of 85.79 is Negative, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $11.70B | 7.85 | 14.83% | 3.25% | -26.66% | 82.24% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | €662.76M | 12.97 | 10.72% | 5.82% | -15.69% | -45.20% | |
57 Neutral | €13.22B | 31.33 | 14.67% | 2.13% | -1.78% | -30.46% | |
55 Neutral | €9.18B | 47.70 | 6.30% | 1.15% | -0.29% | -41.38% | |
55 Neutral | €5.73B | 22.28 | -24.27% | 4.12% | 32.82% | -362.06% | |
43 Neutral | €274.67M | ― | -23.03% | 3.46% | -4.26% | -412.06% |
* Consumer Cyclical Sector Average
DE:CON
Continental Aktiengesellschaft
58.48
17.95
44.27%
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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.