Continental's organic sales declined 1.5% and adjusted operating profit increased 6.7% in the third quarter, with margin improving to 14.9% from 13.9%. An improved mix of ultra-high-performance tires in tires EMEA led the profit improvement. Accordingly, management raised its full-year guidance.
The spinoff of Aumovio and planned sale of ContiTech should unlock material value for current Continental shareholders, as reflected in our attractive sum-of-the-parts valuation.
In a mature industry, with increasing costs and expected volume growth in tonnage alone, rather than the number of units sold, it will become increasingly challenging to keep cost growth below top-line growth.
Metric | CON |
|---|---|
Price/Earnings (Normalized) | 11.62 |
Price/Book Value | 3.17 |
Price/Sales | 0.97 |
Price/Cash Flow | 7.82 |
Metric | CON |
|---|---|
Quick Ratio | 0.57 |
Current Ratio | 1.58 |
Interest Coverage | 4.65 |
Metric | CON |
|---|---|
Return on Assets (Normalized) | 7.85% |
Return on Equity (Normalized) | 33.41% |
Return on Invested Capital (Normalized) | 13.82% |
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