BIT:CON

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and fair value.


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

-4.8%

CON

-1.1%

IT Auto Components

-0.2%

IT Market


1 Year Return

-24.5%

CON

-20.6%

IT Auto Components

-0.3%

IT Market

CON underperformed the Auto Components industry which returned -20.4% over the past year.

CON underperformed the Market in Italy which returned 0.1% over the past year.


Share holder returns

CONIndustryMarket
7 Day-4.8%-1.1%-0.2%
30 Day10.4%15.2%4.4%
90 Day-8.5%-1.3%1.7%
1 Year-22.1%-24.5%-18.4%-20.6%4.0%-0.3%
3 Year-32.0%-36.8%-14.7%-21.5%31.4%13.4%
5 Yearn/a17.2%3.9%13.3%-31.1%

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

No news available

Valuation

Is Continental undervalued based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Continental's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Continental's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Continental is good value based on earnings compared to the IT Auto Components industry average.

Continental is good value based on earnings compared to the Italy market.


Price Based on Expected Growth

Continental is good value based on expected growth next year.


Price Based on Value of Assets

Continental is overvalued based on assets compared to the IT Auto Components industry average.


Next Steps

Future Growth

How is Continental expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Continental's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).

Continental's earnings are expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).

Continental's revenue growth is expected to exceed the Italy market average.

Continental's earnings growth is expected to exceed the Italy market average.

Continental's earnings growth is expected to exceed the low risk savings rate of 2.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Continental is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Continental's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Continental's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Continental's 1-year earnings growth is negative, it can't be compared to the Europe Auto Components industry average.


Return on Equity

Continental has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Continental used its assets more efficiently than the IT Auto Components industry average last year based on Return on Assets.


Return on Capital Employed

Continental's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Continental's financial position?


Financial Position Analysis

Continental is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Continental's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Continental's level of debt (32.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (64.3% vs 32.7% today).

Debt is well covered by operating cash flow (71.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 25.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

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

3.62%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Continental's pays a higher dividend yield than the bottom 25% of dividend payers in Italy (1.99%).

Continental's dividend is below the markets top 25% of dividend payers in Italy (4.36%).

Whilst dividend payments have been stable, Continental has been paying a dividend for less than 10 years.

Dividend payments have increased, but Continental only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.2x coverage).


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)

10.1yrs

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

Elmar's remuneration is higher than average for companies of similar size in Italy.

Elmar's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.5yrs

Average Tenure

57.5yo

Average Age

The average tenure for the Continental management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.9yrs

Average Tenure

57yo

Average Age

The tenure for the Continental board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Helmut Matschi (56yo)

    Member of the Executive Board

    • Tenure: 10.1yrs
    • Compensation: €3.37m
  • Frank Jourdan (59yo)

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

    • Tenure: 6yrs
    • Compensation: €3.45m
  • Elmar Degenhart (60yo)

    Chairman of the Executive Board & CEO

    • Tenure: 10.1yrs
    • Compensation: €6.70m
  • Nikolai Setzer (48yo)

    Member of the Executive Board

    • Tenure: 10.1yrs
    • Compensation: €3.49m
  • Wolfgang Schäfer (60yo)

    CFO & Member of the Executive Board

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

    • Tenure: 1yrs
    • Compensation: €2.92m
  • Hans-Jürgen Duensing (61yo)

    Head of ContiTech Division & Member of the Executive Board

    • Tenure: 4.3yrs
    • Compensation: €3.41m
  • Ariane Reinhart (50yo)

    Director of Labor Relations

    • Tenure: 4.9yrs
    • Compensation: €3.58m
  • Stefan Scholz (54yo)

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

    • Tenure: 4.4yrs
    • Compensation: €196.00k
  • Christian Kötz (49yo)

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

    • Tenure: 0.4yrs

Board Members

  • Wolfgang Reitzle (70yo)

    Chairman of Supervisory Board

    • Tenure: 9.9yrs
    • 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: 15.3yrs
    • 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: 1.5yrs
    • Compensation: €242.00k
  • Maria-Elisabeth Schaeffler-Thumann (78yo)

    Member of Supervisory Board

    • Tenure: 10.6yrs
    • Compensation: €191.00k
  • Michael Iglhaut (55yo)

    Employee Representative Member of the Supervisory Board

    • Tenure: 13.5yrs
    • Compensation: €292.00k
  • Rolf Nonnenmacher (65yo)

    Member of Supervisory Board

    • Tenure: 4.9yrs
    • 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: 4.4yrs
    • 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: BIT
  • Founded: 1871
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €23.677b
  • 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 Analysis2019/09/20 21:45
End of Day Share Price2019/09/20 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.