XTRA:CON

Stock Analysis Report

Executive Summary

Continental Aktiengesellschaft develops products, systems, and services for customers in various industries worldwide.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Continental's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

CON

2.3%

DE Auto Components

1.4%

DE Market


1 Year Return

-10.6%

CON

-11.1%

DE Auto Components

3.7%

DE Market

Return vs Industry: CON matched the German Auto Components industry which returned -11.1% over the past year.

Return vs Market: CON underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

CONIndustryMarket
7 Day1.9%2.3%1.4%
30 Day-0.7%-2.7%1.3%
90 Day-3.7%1.2%3.4%
1 Year-7.7%-10.6%-7.3%-11.1%7.0%3.7%
3 Year-27.0%-32.1%-24.5%-30.8%18.5%8.3%
5 Year-13.4%-22.3%-17.1%-25.6%42.2%22.9%

Price Volatility Vs. Market

How volatile is Continental's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Continental undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CON (€117.56) is trading below our estimate of fair value (€278.22)

Significantly Below Fair Value: CON is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CON is good value based on its PE Ratio (9.8x) compared to the Auto Components industry average (13.1x).

PE vs Market: CON is good value based on its PE Ratio (9.8x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: CON is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: CON is overvalued based on its PB Ratio (1.3x) compared to the DE Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Continental forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CON's forecast earnings growth (16.1% per year) is above the savings rate (0.2%).

Earnings vs Market: CON's earnings (16.1% per year) are forecast to grow faster than the German market (12.7% per year).

High Growth Earnings: CON's earnings are forecast to grow, but not significantly.

Revenue vs Market: CON's revenue (3.9% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: CON's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CON's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Continental performed over the past 5 years?

4.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CON's earnings have grown by 4.3% per year over the past 5 years.

Accelerating Growth: CON's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CON had negative earnings growth (-21.4%) over the past year, making it difficult to compare to the Auto Components industry average (-6.3%).


Return on Equity

High ROE: CON's Return on Equity (13.5%) is considered low.


Return on Assets

ROA vs Industry: CON has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: CON's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Continental's financial position?


Financial Position Analysis

Short Term Liabilities: CON's short term assets (€17.5B) exceeds its short term liabilities (€17.1B)

Long Term Liabilities: CON's short term assets (17.5B) exceeds its long term liabilities (8.7B)


Debt to Equity History and Analysis

Debt Level: CON's debt to equity ratio (32.7%) is considered satisfactory

Reducing Debt: CON's debt to equity ratio has reduced from 64.3% to 32.7% over the past 5 years.

Debt Coverage: CON's debt is well covered by operating cash flow (71.8%).

Interest Coverage: CON's interest payments on its debt are well covered by EBIT (25.3x coverage).


Balance Sheet

Inventory Level: CON has a high level of physical assets or inventory.

Debt Coverage by Assets: CON's debt is covered by short term assets (assets are 2.949040x debt).


Next Steps

Dividend

What is Continental's current dividend yield, its reliability and sustainability?

4.04%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CON's dividend (4.04%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: CON's dividend (4.04%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: Whilst dividend payments have been stable, CON has been paying a dividend for less than 10 years.

Growing Dividend: CON's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.6%), CON's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CON's dividends in 3 years are forecast to be well covered by earnings (31.4% payout ratio).


Next Steps

Management

What is the CEO of Continental's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Elmar Degenhart (60yo)

10.2yrs

Tenure

€6,701,000

Compensation

Dr. Elmar Degenhart has been the Chairman of the Executive Board and Chief Executive Officer at Continental Aktiengesellschaft (Formerly Continental AG) since August 12, 2009. Dr. Degenhart is responsible  ...


CEO Compensation Analysis

Compensation vs. Market: Elmar's total compensation ($USD7.46M) is above average for companies of similar size in the German market ($USD4.64M).

Compensation vs Earnings: Elmar's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: CON's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

10.0yrs

Average Tenure

57yo

Average Age

Experienced Board: CON's board of directors are seasoned and experienced ( 10 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Helmut Matschi (56yo)

    Member of the Executive Board

    • Tenure: 10.2yrs
    • Compensation: €3.37m
  • Frank Jourdan (59yo)

    President of the Chassis & Safety Division and Member of Executive Board

    • Tenure: 6.1yrs
    • Compensation: €3.45m
  • Elmar Degenhart (60yo)

    Chairman of the Executive Board & CEO

    • Tenure: 10.2yrs
    • Compensation: €6.70m
  • Nikolai Setzer (48yo)

    Member of the Executive Board

    • Tenure: 10.2yrs
    • Compensation: €3.49m
  • Wolfgang Schäfer (60yo)

    CFO & Member of the Executive Board

    • Tenure: 0yrs
    • Compensation: €3.86m
  • José Avila (64yo)

    • Tenure: 1.1yrs
    • Compensation: €2.92m
  • Hans-Jürgen Duensing (61yo)

    Head of ContiTech Division & Member of the Executive Board

    • Tenure: 4.4yrs
    • Compensation: €3.41m
  • Ariane Reinhart (50yo)

    Director of Labor Relations

    • Tenure: 5yrs
    • Compensation: €3.58m
  • Stefan Scholz (54yo)

    Head of Finance & Treasury and Employee Representative Member of the Supervisory Board

    • Tenure: 4.5yrs
    • Compensation: €196.00k
  • Christian Kötz (49yo)

    Member of the Executive Board & Executive VP of Business Unit Commercial Vehicle Tires

    • Tenure: 0.5yrs

Board Members

  • Wolfgang Reitzle (70yo)

    Chairman of Supervisory Board

    • Tenure: 10yrs
    • Compensation: €576.00k
  • Gunter Dunkel (66yo)

    Member of Supervisory Board

    • Tenure: 0yrs
    • Compensation: €196.00k
  • Jörg Schönfelder (53yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 15.4yrs
    • Compensation: €289.00k
  • Dirk Nordmann (59yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 0yrs
    • Compensation: €294.00k
  • Christiane Benner (51yo)

    Vice Chairperson of Supervisory Board

    • Tenure: 1.6yrs
    • Compensation: €242.00k
  • Maria-Elisabeth Schaeffler-Thumann (78yo)

    Member of Supervisory Board

    • Tenure: 10.7yrs
    • Compensation: €191.00k
  • Michael Iglhaut (55yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 13.6yrs
    • Compensation: €292.00k
  • Rolf Nonnenmacher (65yo)

    Member of Supervisory Board

    • Tenure: 5yrs
    • Compensation: €481.00k
  • Georg F. Schaeffler (55yo)

    Member of Supervisory Board

    • Tenure: 0yrs
    • Compensation: €296.00k
  • Stefan Scholz (54yo)

    Head of Finance & Treasury and Employee Representative Member of the Supervisory Board

    • Tenure: 4.5yrs
    • Compensation: €196.00k

Company Information

Continental Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Continental Aktiengesellschaft
  • Ticker: CON
  • Exchange: XTRA
  • Founded: 1871
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €23.513b
  • Shares outstanding: 200.01m
  • Website: https://www.continental-corporation.com

Number of Employees


Location

  • Continental Aktiengesellschaft
  • Vahrenwalder Strasse 9
  • Hanover
  • Lower Saxony
  • 30165
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CONABST (Boerse-Stuttgart)ADR EACH REP 0.2 ORD NPVDEEURMar 1991
CTTA.YOTCPK (Pink Sheets LLC)ADR EACH REP 0.2 ORD NPVUSUSDMar 1991
CONDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
CONXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
0LQ1LSE (London Stock Exchange)YesCommon StockGBEURJan 1992
CTTA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
CONDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
CONBIT (Borsa Italiana)YesCommon StockITEURJan 1992
CONTSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
CONWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
CON NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1992

Biography

Continental Aktiengesellschaft develops products, systems, and services for customers in various industries worldwide. The company operates through Chassis & Safety, Powertrain, Interior, Tires, and ContiT ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 21:03
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.