Considering industry trends in connectivity, electronics, and safety, we think Continental's revenue can marginally outpace our estimated 1%-3% long-term average annual growth in global vehicle production. Above-industry-average research and development spending enables consistent product and process innovation, supporting Continental's revenue growth, healthy returns on invested capital, and our narrow economic moat rating.
Continental is well positioned to capitalize on auto industry trends like safety, electronics, connectivity, and automated driving. As a result, we expect the company's revenue to average growth in excess of average annual growth in global light vehicle production.
The cyclical, capital-intensive nature of the automotive industry can cause companies to experience substantial swings in profitability.
|
Metric
|
CON
|
MGA
|
6902
|
|---|---|---|---|
Price/Earnings (Normalized) | 12.42 | 8.11 | 23.35 |
Price/Book Value | 0.82 | 1.09 | 1.25 |
Price/Sales | 0.28 | 0.29 | 0.99 |
Price/Cash Flow | 4.11 | 4.23 | 10.18 |
|
Metric
|
CON
|
MGA
|
6902
|
|---|---|---|---|
Quick Ratio | 0.72 | 0.73 | 0.98 |
Current Ratio | 1.24 | 1.09 | 1.79 |
Interest Coverage | 3.37 | 5.68 | 17.07 |
|
Metric
|
CON
|
MGA
|
6902
|
|---|---|---|---|
Return on Assets (Normalized) | 2.21% | 4.85% | 4.30% |
Return on Equity (Normalized) | 6.12% | 13.50% | 7.17% |
Return on Invested Capital (Normalized) | 4.79% | 8.85% | 5.11% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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