- Continental anticipates a 2024 adjusted Ebit margin of around 6% to 7%, estimated at 6.72%.
- The company expects sales to be approximately EU41 billion to EU44 billion, with an estimate of EU42.9 billion.
- A forecast for automotive revenue is in the range of EU20 billion to EU22 billion, estimated at EU21.24 billion.
- Tires revenue is projected to be about EU14 billion to EU15 billion, with an estimate of EU14.49 billion.
- ContiTech revenue is expected to be approximately EU6.6 billion to EU7 billion, estimated at EU7.08 billion.
- 2023 results show sales at EU41.42 billion, a 5.1% increase year-on-year, with an estimate of EU41.8 billion.
- The automotive revenue for 2023 was EU20.3 billion, estimated at EU20.48 billion.
- 2023 Tires revenue was EU14.0 billion, with an estimate of EU14.21 billion.
- ContiTech revenue for 2023 was EU6.8 billion, with an estimate of EU6.94 billion.
- The dividend per share increased from EU1.50 to EU2.20, with an estimate of EU1.93.
- The adjusted Ebit for 2023 was EU2.52 billion, a 32% increase year-on-year, estimated at EU2.56 billion.
- Net income for 2023 was EU1.16 billion, compared to EU66.6 million the previous year, with an estimate of EU1.31 billion.
- Net debt at the end of the period was EU4.04 billion, a 10% decrease year-on-year, with an estimate of EU4.22 billion.
- Continental predicts a 2024 automotive adjusted EBIT margin of approximately 3% to 4%.
- They also foresee a 2024 Tires adjusted EBIT margin of around 13% to 14%.
- Continental expects a 2024 ContiTech adjusted EBIT margin of approximately 6.5% to 7.5%.
- Capital expenditure before financial investments is expected to be around 6% to 7% of sales.
- 2024 adjusted free cash flow is predicted to be around €0.7 billion to €1.1 billion.
- The company expects special expenses of around €1 billion, which will impact adjusted free cash flow in fiscal 2024.
- Higher costs for wages and salaries, expected to be around €500 million, will significantly impact earnings in fiscal 2024, with approximately half of these costs attributable to the Automotive group sector.
A look at Continental Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Continental AG, a global manufacturer of tires, automotive parts, and industrial products, has received high scores across the board in the Smartkarma Smart Scores. With a score of 5 for both Growth and Momentum, the company is showing strong potential for future success. This is further supported by a score of 4 for Value, indicating that the company is currently undervalued and could provide good returns for investors in the long run.
In addition, Continental scored a respectable 3 for both Dividend and Resilience. While not as high as the scores for Growth and Momentum, these scores still demonstrate the company’s commitment to providing reliable dividends to shareholders and its ability to weather any potential challenges in the market. Overall, the Smartkarma Smart Scores suggest a positive long-term outlook for Continental, making it an attractive option for investors looking for a solid and potentially lucrative investment in the automotive and industrial sectors.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
