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Continental AG (CTTAY)
OTHER OTC:CTTAY
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Continental AG
(OTC:CTTAY)
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Rating:73Outperform
Price Target:
$8.00
▲(8.55% Upside)
Continental AG's stock score is driven by strong valuation metrics and positive technical indicators, suggesting potential undervaluation and favorable market trends. Financial performance shows resilience, though challenges in revenue growth and free cash flow persist. The earnings call highlights improvements in the automotive segment, but FX and tariff impacts pose risks.
Continental AG (CTTAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.45B
Dividend Yield0.45%
Average Volume (3M)48.86K
Price to Earnings (P/E)8.9
Beta (1Y)0.69
Revenue Growth-26.34%
EPS Growth85.55%
CountryUS
Employees96,426
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.28
Shares Outstanding2,000,059,800
10 Day Avg. Volume6,668
30 Day Avg. Volume48,857
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 Cap1.75
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit3.56
Enterprise Value/Ebitda6.19
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Continental AG 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 AG generates revenue through multiple key streams. The primary source is the sale of tires, which includes passenger car tires, commercial vehicle tires, and specialty tires. The automotive technology segment contributes significantly by providing advanced electronics, sensor systems, and software solutions that enhance vehicle performance and safety. Additionally, Continental earns revenue from its industrial business, which offers various products and services related to automation and drive technology. The company has established strategic partnerships with automotive manufacturers and technology firms to drive innovation and expand its market reach. Its investment in research and development allows Continental to stay at the forefront of technological advancements, thereby attracting more clients and increasing sales.
Continental AG 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 presented a mixed performance. While there were notable improvements in the automotive segment, challenges were present in the tires and ContiTech segments due to FX and tariff impacts. The overall sentiment is balanced, reflecting both positive and negative trends.Q2-2025 Updates
Positive Updates
Automotive Segment Improvement
Automotive sales improved to the upper range of the guidance with a 4% increase, driven by commercial and operational efforts. The segment also benefited from significant fixed-cost reductions.
Net Income and Equity Improvement
Net income increased from EUR 305 million to EUR 506 million, with an improvement in net indebtedness by about EUR 650 million.
Positive Order Intake in Automotive
Automotive segment saw significant wins in autonomous mobility and MK C2 projects in China, indicating strong market acceptance and future growth potential.
Negative Updates
Negative FX and Tariff Impacts on Tires
Tires segment was significantly hit by FX and tariffs, resulting in a low 3-digit million euro negative impact, with a continued high drop-through in FX expected in H2.
Decline in Group Sales
Group sales dropped from EUR 10 billion to EUR 9.6 billion, with a negative organic sales growth of -0.4%, influenced by FX effects.
Challenges in ContiTech and Industry Volumes
ContiTech faced weak volumes and organic sales decline by 1.4%, with ongoing headwinds from tariffs and FX.
Company Guidance
During the Continental AG Analyst and Investor Call for H1 2025, several key metrics and guidance details were highlighted. The company's Q2 2025 adjusted EBIT was positively impacted by EUR 235 million due to IFRS 5 accounting related to the impending automobile spin-off, which will occur on September 18. This adjustment contributed to an EBIT margin increase of 240 basis points in the automotive sector. Despite a challenging macroeconomic environment, the company reported a resilient performance with group sales marginally declining from EUR 10 billion to EUR 9.6 billion. Organic sales showed a slight decrease of 0.4%, while the automotive segment improved to the upper range of guidance at 4% profitability, driven by significant fixed-cost reductions. Net income rose to EUR 506 million, though comparisons are affected by accounting changes and hypothetical tax effects. The tire segment faced a strong FX headwind of over 3%, with tariffs expected to drop in the second half, reducing headwinds by a mid-double-digit million amount. For Q2, the group's net indebtedness improved by approximately EUR 650 million, while the adjusted free cash flow showed a decline due to restructuring and spin-off activities. Overall, the company reaffirmed its guidance, expecting continued transformation progress and a robust cash flow performance in the second half of 2025.Continental AG Financial Statement Overview
Summary
Continental AG's financial health reflects a recovering trajectory post-pandemic, with stable profitability and a balanced capital structure. The income statement shows resilience, but challenges remain in maintaining consistent revenue growth and maximizing free cash flow. The balance sheet is strong, supporting future growth opportunities.Income Statement
Continental AG has shown resilience in its income statement with a stable gross profit margin and a recovering net income. However, the revenue growth rate has been volatile, with recent years showing fluctuations. The EBIT margin has improved but remains low. Overall profitability is recovering, but there is room for improvement.Balance Sheet
The balance sheet of Continental AG indicates a solid equity base with a moderate debt-to-equity ratio. The return on equity (ROE) has shown improvement, reflecting better utilization of shareholder funds. The equity ratio suggests a balanced approach to financing, though there is potential to optimize the capital structure further.Cash Flow
Cash flow analysis reveals positive trends in operating cash flow, although free cash flow growth has been erratic. The operating cash flow to net income ratio indicates efficient cash generation relative to net income. However, the free cash flow to net income ratio suggests challenges in translating income into free cash flow consistently.| 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 | 4.09B | 4.55B | 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 | 2.72B | 2.92B | 2.44B | 2.00B | 2.64B |
| Total Debt | 0.00 | 6.88B | 7.16B | 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 | 980.00M | 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 AG Technical Analysis
Positive
7.37
Price Trends
6.82
Positive
6.86
Positive
6.31
Positive
Market Momentum
0.08
Negative
66.87
Neutral
99.76
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTTAY, the sentiment is Positive. The current price of 7.37 is above the 20-day moving average (MA) of 6.74, above the 50-day MA of 6.82, and above the 200-day MA of 6.31, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 66.87 is Neutral, neither overbought nor oversold. The STOCH value of 99.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTTAY.
Continental AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.13B | 10.93 | 22.96% | 0.24% | -3.26% | -45.84% | |
78 Outperform | $8.98B | 12.21 | 31.09% | 2.55% | 0.84% | 26.17% | |
76 Outperform | $18.64B | 19.34 | 9.58% | ― | -0.96% | -66.99% | |
73 Outperform | $5.37B | 11.79 | 9.51% | 3.08% | -3.12% | -8.23% | |
73 Outperform | $14.45B | 8.86 | 14.83% | 0.45% | -26.34% | 85.55% | |
67 Neutral | $9.48B | 46.75 | 3.66% | 1.15% | -2.12% | -69.42% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
CTTAY
Continental AG
7.37
2.43
49.19%
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Continental AG Corporate Events
Continental AG’s Earnings Call: Mixed Outlook with Automotive Gains
Aug 7, 2025
Continental AG’s recent earnings call revealed a mixed sentiment, showcasing significant achievements in the automotive segment and robust cash flow performance. However, these positive aspects were counterbalanced by challenges in the tire and ContiTech segments, alongside a slight decline in overall revenue.
Continental AG Reports Mixed Half-Year Results Amid Strategic Changes
Aug 6, 2025
Continental AG is a leading German automotive supplier specializing in tires, automotive components, and industrial products, with a focus on innovation and sustainability. In its half-year financial report for 2025, Continental AG highlighted a mixed performance amid challenging market conditions, with a slight decline in overall sales but a significant increase in net income. Key financial metrics showed a 2.5% decrease in consolidated sales to €19.3 billion, while adjusted EBIT rose by 61.4% to €1.47 billion, reflecting improved operational efficiency. The company also announced strategic moves, including the spin-off of its Automotive and Contract Manufacturing sectors into a new entity named AUMOVIO, and the planned sale of its ContiTech sector. Looking ahead, Continental AG remains cautiously optimistic, projecting stable sales and EBIT margins for its core tire business, while navigating geopolitical and economic uncertainties.
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.