In the second quarter, Continental reported flat tire revenue and significantly improved adjusted EBIT margin of 15.3% versus 12.1% the year prior, driving improved group free cash flow to EUR 216 million. The sale of ContiTech has been finalized at a 4 times enterprise value/EBITDA multiple.
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) | 21.79 |
Price/Book Value | 3.41 |
Price/Sales | 0.86 |
Price/Cash Flow | 7.74 |
|
Metric
|
CON
|
|---|---|
Quick Ratio | 0.47 |
Current Ratio | 1.38 |
Interest Coverage | 0.83 |
|
Metric
|
CON
|
|---|---|
Return on Assets (Normalized) | 3.32% |
Return on Equity (Normalized) | 16.78% |
Return on Invested Capital (Normalized) | 8.03% |
|
1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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Capital Allocation
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Economic Moat
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United States