Continental Aktiengesellschaft (CON) AI Stock Analysis

• Market Cap: $12.90B
• Dividend Yield: 2.91%
• Average Volume (3M): 646.55K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.06
• Revenue Growth: -26.66%
• EPS Growth: 82.24%
• Country: DE
• Employees: 96,426
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.92
• Shares Outstanding: 200,005,980
• 10 Day Avg. Volume: 675,315
• 30 Day Avg. Volume: 646,549
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 5.29
• 1Y Price Target: $69.83
• Price Target Upside: 6.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: €68.00 ▲(3.98% Upside)

Continental Aktiengesellschaft's stock score is driven by its strong valuation and positive technical indicators. The company's stable financial performance and strategic progress in the Automotive segment further support the score, despite challenges in revenue and profitability due to FX and tariffs.

Positive Factors

Automotive Segment Growth

The significant order intake in the automotive segment highlights strong demand and strategic positioning in autonomous mobility and integrated brake systems, which are critical for future growth and competitive advantage.

Strategic Spin-Off

The upcoming spin-off reflects strategic restructuring efforts aimed at enhancing operational focus and unlocking shareholder value, potentially leading to improved financial performance and market positioning.

Cash Flow Improvement

The significant improvement in free cash flow indicates strong cash generation capabilities, which enhances financial flexibility and supports future investments and strategic initiatives.

Negative Factors

Revenue Decline

The decline in revenue, impacted by FX, suggests challenges in maintaining sales momentum, which could pressure profitability and growth prospects if not addressed through strategic initiatives.

FX and Tariff Challenges

The adverse effects of FX and tariffs on profitability highlight external risks that could persist, affecting margins and necessitating effective hedging and pricing strategies to mitigate impacts.

ContiTech Performance

The weak performance in the ContiTech segment underscores operational challenges and market volatility, which may require strategic adjustments to stabilize and enhance segment profitability.

Continental Aktiengesellschaft Business Overview & Revenue Model

Company Description

Continental Aktiengesellschaft (CON) is a leading global automotive supplier headquartered in Hanover, Germany. The company operates in various sectors including tire manufacturing, automotive components, and industrial products. Continental is known for its innovative technologies in areas such as vehicle safety, automation, and connectivity, providing products like tires, brake systems, powertrain components, and advanced driver assistance systems (ADAS).

How the Company Makes Money

Continental 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 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.

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 65.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 65.4 is above the 20-day moving average (MA) of 58.94, above the 50-day MA of 57.48, and above the 200-day MA of 54.35, indicating a bullish trend. The MACD of 1.99 indicates Negative momentum. The RSI at 74.50 is Negative, neither overbought nor oversold. The STOCH value of 97.32 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CON	―	$12.90B	8.66	14.83%	2.91%	-26.66%	82.24%
HLE	―	€9.14B	47.52	6.30%	1.15%	-0.29%	-41.38%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SFQ	―	€640.97M	12.50	10.72%	5.81%	-15.69%	-45.20%
KBX	―	€13.10B	31.04	14.67%	2.15%	-1.78%	-30.46%
SHA0	―	€6.19B	-5.42	-24.27%	3.81%	32.82%	-362.06%
ZIL2	―	€260.41M	-1.56	-23.03%	3.65%	-4.26%	-412.06%

Continental Aktiengesellschaft Corporate Events

Continental AG Reports Mixed Performance Amid Strategic Shifts

Continental AG is a leading German automotive parts manufacturer specializing in tires, brake systems, and other vehicle components, with a focus on innovation and sustainability in the automotive sector. In its latest half-year financial report for 2025, Continental AG highlighted a mixed performance amid global market volatility and geopolitical tensions. The company reported a slight decline in sales but a significant increase in adjusted EBIT, driven by strategic realignments and efficiency measures. Key developments included the planned spin-off of its Automotive and Contract Manufacturing sectors into a new entity, AUMOVIO, and the anticipated sale of the ContiTech sector. Despite challenges, Continental’s shares saw a 14.3% increase, reflecting investor confidence in its strategic direction. Looking ahead, Continental AG remains focused on its core tire business and expects stable growth, supported by its strategic initiatives and market adaptations.