| Continental Aktiengesellschaft (DE0005439004) | |||
75,04 EURStand (close): 02.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 22.04.25 11:19:39 | Why Continental Aktiengesellschaft (ETR:CON) Could Be Worth Watching |  |
| Continental Aktiengesellschaft (ETR:CON) received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €71.28 at one point, and dropping to the lows of €58.78. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Continental's current trading price of €64.60 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Continental’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. We've discovered 1 warning sign about Continental. View them for free. What's The Opportunity In Continental? The share price seems sensible at the moment according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Continental’s ratio of 11.06x is trading slightly above its industry peers’ ratio of 11.06x, which means if you buy Continental today, you’d be paying a relatively sensible price for it. And if you believe Continental should be trading in this range, then there isn’t really any room for the share price grow beyond the levels of other industry peers over the long-term. Although, there may be an opportunity to buy in the future. This is because Continental’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity. View our latest analysis for Continental What does the future of Continental look like?XTRA:CON Earnings and Revenue Growth April 22nd 2025 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Continental's earnings over the next few years are expected to increase by 83%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? It seems like the market has already priced in CON’s positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at CON? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio? Story Continues Are you a potential investor? If you’ve been keeping an eye on CON, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for CON, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. If you want to dive deeper into Continental, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 1 warning sign with Continental, and understanding this should be part of your investment process. If you are no longer interested in Continental, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 08.04.25 10:23:00 | Continental Mulls Sale of ContiTech Business |  |
| The auto-parts maker is looking to boost earnings by carving out its individual businesses to give them greater flexibility in responding to market trends. Continue Reading View Comments |
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| 21.03.25 04:27:02 | Continental Full Year 2024 Earnings: EPS Misses Expectations | |
| Continental (ETR:CON) Full Year 2024 Results Key Financial Results Revenue: €39.7b (down 4.1% from FY 2023). Net income: €1.17b (up 1.0% from FY 2023). Profit margin: 2.9% (up from 2.8% in FY 2023). The increase in margin was driven by lower expenses. EPS: €5.84 (up from €5.78 in FY 2023). The end of cancer? These 15 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.XTRA:CON Earnings and Revenue Growth March 21st 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Continental EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.0%. Looking ahead, revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Auto Components industry in Germany. Performance of the German Auto Components industry. The company's shares are up 3.9% from a week ago. Risk Analysis Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Continental that you should be aware of. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 10.03.25 06:42:35 | Continental's (ETR:CON) Dividend Will Be Increased To €2.50 | |
| Continental Aktiengesellschaft (ETR:CON) has announced that it will be increasing its dividend from last year's comparable payment on the 30th of April to €2.50. This will take the dividend yield to an attractive 3.6%, providing a nice boost to shareholder returns. See our latest analysis for Continental Continental's Projected Earnings Seem Likely To Cover Future Distributions We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. The last dividend was quite easily covered by Continental's earnings. This indicates that quite a large proportion of earnings is being invested back into the business. Looking forward, earnings per share is forecast to rise by 90.1% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 21% by next year, which is in a pretty sustainable range.XTRA:CON Historic Dividend March 10th 2025 Dividend Volatility The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The payments haven't really changed that much since 10 years ago. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past. The Dividend Looks Likely To Grow With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Continental has seen EPS rising for the last five years, at 56% per annum. The company's earnings per share has grown rapidly in recent years, and it has a good balance between reinvesting and paying dividends to shareholders, so we think that Continental could prove to be a strong dividend payer. Continental Looks Like A Great Dividend Stock In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. Taking the debate a bit further, we've identified 1 warning sign for Continental that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 07.03.25 04:19:40 | Earnings Miss: Continental Aktiengesellschaft Missed EPS By 9.0% And Analysts Are Revising Their Forecasts | |
| Last week saw the newest annual earnings release from Continental Aktiengesellschaft (ETR:CON), an important milestone in the company's journey to build a stronger business. Revenues of €40b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €5.84, missing estimates by 9.0%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year. See our latest analysis for Continental XTRA:CON Earnings and Revenue Growth March 7th 2025 Following last week's earnings report, Continental's 17 analysts are forecasting 2025 revenues to be €40.1b, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 20% to €7.03. Before this earnings report, the analysts had been forecasting revenues of €41.1b and earnings per share (EPS) of €8.52 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates. The analysts made no major changes to their price target of €77.11, suggesting the downgrades are not expected to have a long-term impact on Continental's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Continental, with the most bullish analyst valuing it at €93.00 and the most bearish at €59.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure. One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Continental's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.0% growth on an annualised basis. This is compared to a historical growth rate of 2.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Continental is also expected to grow slower than other industry participants. Story Continues The Bottom Line The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Continental. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at €77.11, with the latest estimates not enough to have an impact on their price targets. With that in mind, we wouldn't be too quick to come to a conclusion on Continental. Long-term earnings power is much more important than next year's profits. We have forecasts for Continental going out to 2027, and you can see them free on our platform here. Before you take the next step you should know about the 1 warning sign for Continental that we have uncovered. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 04.03.25 06:45:22 | Those who invested in Continental (ETR:CON) three years ago are up 26% | |
| Buying a low-cost index fund will get you the average market return. But across the board there are plenty of stocks that underperform the market. For example, the Continental Aktiengesellschaft (ETR:CON) share price return of 15% over three years lags the market return in the same period. Unfortunately, the share price has fallen 5.2% over twelve months. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. View our latest analysis for Continental While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over the last three years, Continental failed to grow earnings per share, which fell 8.6% (annualized). The strong decline in earnings per share suggests the market isn't using EPS to judge the company. So we'll need to take a look at some different metrics to try to understand why the share price remains solid. It may well be that Continental revenue growth rate of 6.9% over three years has convinced shareholders to believe in a brighter future. In that case, the company may be sacrificing current earnings per share to drive growth, and maybe shareholder's faith in better days ahead will be rewarded. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).XTRA:CON Earnings and Revenue Growth March 4th 2025 Continental is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. Given we have quite a good number of analyst forecasts, it might be well worth checking out this freechart depicting consensus estimates. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Continental's TSR for the last 3 years was 26%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective While the broader market gained around 21% in the last year, Continental shareholders lost 1.8% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 2% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Continental has 1 warning sign we think you should be aware of. Story Continues We will like Continental better if we see some big insider buys. While we wait, check out this freelist of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 01.02.25 07:15:31 | An Intrinsic Calculation For Continental Aktiengesellschaft (ETR:CON) Suggests It's 49% Undervalued | |
| Key Insights Using the 2 Stage Free Cash Flow to Equity, Continental fair value estimate is €134 Continental's €68.78 share price signals that it might be 49% undervalued Analyst price target for CON is €78.61 which is 41% below our fair value estimate In this article we are going to estimate the intrinsic value of Continental Aktiengesellschaft (ETR:CON) by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Don't get put off by the jargon, the math behind it is actually quite straightforward. We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. See our latest analysis for Continental The Method We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €1.26b €1.57b €1.52b €1.49b €1.48b €1.47b €1.47b €1.48b €1.48b €1.49b Growth Rate Estimate Source Analyst x9 Analyst x7 Analyst x1 Est @ -1.87% Est @ -1.02% Est @ -0.42% Est @ -0.01% Est @ 0.28% Est @ 0.48% Est @ 0.63% Present Value (€, Millions) Discounted @ 6.1% €1.2k €1.4k €1.3k €1.2k €1.1k €1.0k €969 €916 €867 €822 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €11b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.0%. We discount the terminal cash flows to today's value at a cost of equity of 6.1%. Story Continues Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €1.5b× (1 + 1.0%) ÷ (6.1%– 1.0%) = €29b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €29b÷ ( 1 + 6.1%)10= €16b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €27b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of €68.8, the company appears quite good value at a 49% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind.XTRA:CON Discounted Cash Flow February 1st 2025 Important Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Continental as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.1%, which is based on a levered beta of 1.257. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. SWOT Analysis for Continental Strength Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Auto Components market. Opportunity Annual earnings are forecast to grow faster than the German market. Trading below our estimate of fair value by more than 20%. Threat Annual revenue is forecast to grow slower than the German market. Next Steps: Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price sitting below the intrinsic value? For Continental, we've compiled three fundamental elements you should explore: Risks: For example, we've discovered 1 warning sign for Continental that you should be aware of before investing here. Future Earnings: How does CON's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 17.01.25 14:40:12 | Is Continental (CTTAY) Stock Undervalued Right Now? | |
| Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. One stock to keep an eye on is Continental (CTTAY). CTTAY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 6.95 right now. For comparison, its industry sports an average P/E of 13.89. Over the last 12 months, CTTAY's Forward P/E has been as high as 10 and as low as 6.21, with a median of 7.08. Another valuation metric that we should highlight is CTTAY's P/B ratio of 0.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CTTAY's current P/B looks attractive when compared to its industry's average P/B of 1.91. Over the past year, CTTAY's P/B has been as high as 1.09 and as low as 0.72, with a median of 0.85. Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CTTAY has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.63. These figures are just a handful of the metrics value investors tend to look at, but they help show that Continental is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CTTAY feels like a great value stock at the moment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Continental AG (CTTAY) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research View Comments |
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| 15.01.25 09:44:11 | Institutions own 28% of Continental Aktiengesellschaft (ETR:CON) shares but private companies control 46% of the company | |
| Key Insights Significant control over Continental by private companies implies that the general public has more power to influence management and governance-related decisions The top 2 shareholders own 51% of the company 28% of Continental is held by Institutions If you want to know who really controls Continental Aktiengesellschaft (ETR:CON), then you'll have to look at the makeup of its share registry. With 46% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk). Institutions, on the other hand, account for 28% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Let's take a closer look to see what the different types of shareholders can tell us about Continental. See our latest analysis for Continental XTRA:CON Ownership Breakdown January 15th 2025 What Does The Institutional Ownership Tell Us About Continental? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors have a fair amount of stake in Continental. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Continental, (below). Of course, keep in mind that there are other factors to consider, too.XTRA:CON Earnings and Revenue Growth January 15th 2025 We note that hedge funds don't have a meaningful investment in Continental. Looking at our data, we can see that the largest shareholder is INA-Holding Schaeffler GmbH & Co. KG with 46% of shares outstanding. Harris Associates L.P. is the second largest shareholder owning 5.0% of common stock, and Norges Bank Investment Management holds about 3.0% of the company stock. After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Story Continues Insider Ownership Of Continental While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here. General Public Ownership The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Private Company Ownership We can see that Private Companies own 46%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Continental better, we need to consider many other factors. For example, we've discovered 1 warning sign for Continental that you should be aware of before investing here. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 01.01.25 14:40:15 | Should Value Investors Buy Continental (CTTAY) Stock? | |
| The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. One stock to keep an eye on is Continental (CTTAY). CTTAY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.84, while its industry has an average P/E of 19. CTTAY's Forward P/E has been as high as 12.07 and as low as 6.21, with a median of 7.13, all within the past year. Another notable valuation metric for CTTAY is its P/B ratio of 0.85. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.93. Over the past year, CTTAY's P/B has been as high as 1.11 and as low as 0.72, with a median of 0.85. Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CTTAY has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.63. These are just a handful of the figures considered in Continental's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CTTAY is an impressive value stock right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Continental AG (CTTAY) : Free Stock Analysis Report Story Continues To read this article on Zacks.com click here. Zacks Investment Research View Comments |
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