XTRA:CON

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

Stable Share Price: CON has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.7%

CON

-6.5%

DE Auto Components

-6.8%

DE Market


1 Year Return

-27.0%

CON

-19.6%

DE Auto Components

6.5%

DE Market

Return vs Industry: CON underperformed the German Auto Components industry which returned -20.9% over the past year.

Return vs Market: CON underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

CONIndustryMarket
7 Day-5.7%-6.5%-6.8%
30 Day4.9%0.7%-3.7%
90 Day-12.9%-13.7%-3.6%
1 Year-24.7%-27.0%-16.3%-19.6%9.8%6.5%
3 Year-41.4%-45.5%-36.8%-42.1%6.8%-2.6%
5 Year-44.3%-50.0%-40.8%-47.2%12.5%-2.9%

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 (€105.22) is trading below our estimate of fair value (€249.75)

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


Price To Earnings Ratio

PE vs Industry: CON is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: CON is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CON is overvalued based on its PB Ratio (1.4x) compared to the DE Auto Components industry average (1.1x).


Next Steps

Future Growth

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

62.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CON is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: CON is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CON's is expected to become profitable in the next 3 years.

Revenue vs Market: CON's revenue (2.7% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: CON's revenue (2.7% 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 (14.9%).


Next Steps

Past Performance

How has Continental performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CON is currently unprofitable.

Growing Profit Margin: CON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CON is unprofitable, and losses have increased over the past 5 years at a rate of -2.7% per year.

Accelerating Growth: Unable to compare CON's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CON is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-29.1%).


Return on Equity

High ROE: CON has a negative Return on Equity (-1.01%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Continental's financial position?


Financial Position Analysis

Short Term Liabilities: CON's short term assets (€17.9B) exceed its short term liabilities (€17.1B).

Long Term Liabilities: CON's short term assets (€17.9B) exceed its long term liabilities (€9.5B).


Debt to Equity History and Analysis

Debt Level: CON's debt to equity ratio (37%) is considered satisfactory.

Reducing Debt: CON's debt to equity ratio has reduced from 57.3% to 37% over the past 5 years.


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 3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CON has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CON has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

4.51%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.5%markettop25%3.8%industryaverage4.4%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: CON's dividend (4.51%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: CON's dividend (4.51%) is in the top 25% of dividend payers in the German market (3.8%)


Stability and Growth of Payments

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: CON is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CON's dividends in 3 years are forecast to be well covered by earnings (32.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Elmar Degenhart (60yo)

10.5yrs

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 ($USD7.29M) is above average for companies of similar size in the German market ($USD4.53M).

Compensation vs Earnings: Elmar's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Elmar Degenhart
Chairman of the Executive Board & CEO10.5yrs€6.70m0.0081% 1.7m
Wolfgang Schäfer
CFO & Member of the Executive Board0yrs€3.86m0.0044% 936.5k
Nikolai Setzer
Member of the Executive Board10.5yrs€3.49m0.0041% 864.9k
Helmut Matschi
Member of the Executive Board10.5yrs€3.37m0.0036% 749.2k
Frank Jourdan
President of the Chassis & Safety Division and Member of Executive Board6.4yrs€3.45m0.0038% 801.8k
Ariane Reinhart
Director of Labor Relations5.3yrs€3.58m0.0044% 936.5k
Hans-Jürgen Duensing
Head of ContiTech Division & Member of the Executive Board4.8yrs€3.41m0.0031% 654.5k
Stefan Scholz
Head of Finance & Treasury and Employee Representative Member of the Supervisory Board4.8yrs€196.00kno data
Christian Kötz
Member of the Executive Board & Executive VP of Business Unit Commercial Vehicle Tires0.8yrsno datano data
Dirk Abendroth
Chief Technology Officer1.1yrsno datano data

5.9yrs

Average Tenure

55yo

Average Age

Experienced Management: CON's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stefan Scholz
Head of Finance & Treasury and Employee Representative Member of the Supervisory Board4.8yrs€196.00kno data
Wolfgang Reitzle
Chairman of Supervisory Board10.3yrs€576.00kno data
Gunter Dunkel
Member of Supervisory Board0yrs€196.00kno data
Jörg Schönfelder
Employee Representative Member of the Supervisory Board15.8yrs€289.00kno data
Dirk Nordmann
Employee Representative Member of the Supervisory Board0yrs€294.00kno data
Christiane Benner
Vice Chairperson of Supervisory Board1.9yrs€242.00kno data
Maria-Elisabeth Schaeffler-Thumann
Member of Supervisory Board11yrs€191.00kno data
Michael Iglhaut
Employee Representative Member of the Supervisory Board13.9yrs€292.00kno data
Rolf Nonnenmacher
Member of Supervisory Board5.3yrs€481.00kno data
Georg F. Schaeffler
Member of Supervisory Board0yrs€296.00kno data

10.3yrs

Average Tenure

57yo

Average Age

Experienced Board: CON's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: €21.045b
  • 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
CTTA.YOTCPK (Pink Sheets LLC)ADR EACH REP 0.2 ORD NPVUSUSDMar 1991
CONABST (Boerse-Stuttgart)ADR EACH REP 0.2 ORD NPVDEEURMar 1991
CTTA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
CONDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
CONXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
0LQ1LSE (London Stock Exchange)YesCommon StockGBEURJan 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 ContiTech segments. The Chassis & Safety segment develops, produces, and markets intelligent systems to enhance driving safety and vehicle dynamics. This segment offers advanced driver assistance systems, hydraulic brake systems, passive safety and sensoric products, and vehicle dynamics products. The Powertrain segment provides engine systems, fuel and exhaust management systems, hybrid electric vehicles, sensors and actuators, and transmission products. The Interior segment develops and produces information, communication, and network solutions and services for cars and commercial vehicles, such as body and security, commercial vehicle and aftermarket, infotainment and connectivity, and instrumentation and driver HMI systems. The Tires segment provides passenger and light truck equipment, commercial vehicle, and two-wheel tires for use in vehicle manufacture and replacement businesses. The ContiTech segment develops, manufactures, and markets functional parts, and intelligent components and systems made of rubber, plastic, metal, and fabric for the machine and plant engineering, mining, agriculture, automotive, and other industries. It offers air spring systems, industrial fluid solutions, mobile fluid systems, and vibration control products, as well as conveyor belts and power transmission products. Continental Aktiengesellschaft serves the automotive, railway engineering, machine and plant construction, and mining industries, as well as replacement sector. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 21:31
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
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.