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Continental AG CON Stock Quote

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Morningstar‘s Stock Analysis CON

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Is it the right time to buy or sell?

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Continental's Q3 Improves as Chip Crunch Lessens; Slight FVE Increase to EUR 146

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

Narrow-moat-rated Continental reported third-quarter earnings per share before special items of EUR 1.70, beating the EUR 1.58 EPS FactSet consensus by EUR 0.12 and EUR 0.43 better than the EUR 1.27 EPS reported a year ago when the chip crunch was at its worst. Consolidated revenue beat consensus by 4%, increasing 29% to EUR 10.4 billion from EUR 8.0 billion last year. Excluding positive currency effect, organic revenue increased 23%. Automotive organic revenue jumped 34%, outperforming a 29% increase in global light vehicle production by 500 basis points thanks to new business and raw material customer price recoveries. Tire organic revenue jumped 16% on pricing, while ContiTech organic revenue increased 16% mostly on non-automotive pricing and volume growth. The time value of money added EUR 4 while changes to our model subtracted EUR 2, making our new fair value estimate EUR 146, up from EUR 144. The 5-star-rated shares of Continental currently trade at a compelling 59% discount to our fair value.

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Key Statistics CON

Company Profile CON

Business Description

Continental is a global auto supplier and tiremaker. Operating segments include the autonomous mobility and safety segment and the vehicle networking and information segment in the automotive group, plus tires and ContiTech, which uses rubber in industrial and automotive components and systems, in the rubber group. Last year, pro forma for the spinoff of Vitesco, automotive group revenue was around 45% (AMS 22%, VNI 23%) of the total, rubber group revenue was 52% (tires 35%, CT 17%), and contract manufacturing for Vitesco was 3%. Top five customers include Mercedes-Benz, Ford, the Renault-Nissan-Mitsubishi alliance, Stellantis, and Volkswagen, representing about 33% of total revenue. Europe, at 48% of total revenue, is the companies largest market, followed by North America at 26%.

Vahrenwalder Strasse 9
Hanover, 30165, Germany
T +49 51193801
Industry Auto Parts
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 194,577