February 13, 2025
Top 10 Stock Continental Strong Buy Recommendation
How to read the ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Snapshot: Continental – Top 10 Stock in Energy Efficency Leaders
Continental is listed as a top 10 stock on February 13, 2025 in the market index Energy Efficient because of its high performance in at least one of the Obermatt investment strategies. As three out of four consolidated Obermatt Ranks exhibit excellent performance, it is a solid investment where the risk of paying too much for the shares is low, despite a currently slow growth momentum. Based on the Obermatt 360° View of 96 (top 96% performer), Obermatt assesses an overall strong buy recommendation for Continental on February 13, 2025.
Snapshot: Obermatt Ranks
| Country | Germany |
| Industry | Auto Parts & Equipment |
| Index | CDAX, DAX 40, Energy Efficient, Human Rights |
| Size class | XX-Large |
When Obermatt identifies the Top 10 stocks in a market, it’s based on a certain investment strategy. The best performing stocks usually aren’t the ones that everyone is talking about (those are often "over-priced" and have low Value ranks).
For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).
360° View: Obermatt 360° View Continental Strong Buy
| 360 METRICS | February 13, 2025 | |||||||
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| VALUE | ||||||||
| VALUE | 66 |
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| GROWTH | ||||||||
| GROWTH | 46 |
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| SAFETY | ||||||||
| SAFETY | 83 |
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| SENTIMENT | ||||||||
| SENTIMENT | 76 |
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| 360° VIEW | ||||||||
| 360° VIEW | 96 |
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ANALYSIS: With an Obermatt 360° View of 96 (better than 96% compared with alternatives) for 2025, overall professional sentiment and financial characteristics for the stock Continental are very positive. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for Continental. The consolidated Value Rank has an attractive rank of 66, which means that the share price of Continental is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 66% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 83. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 76. But the consolidated Growth Rank has a low rank of 46, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 54 of its competitors have better growth. ...read more
RECOMMENDATION: With a consolidated 360° View of 96, Continental is better positioned than 96% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 66), secure financing practices (Safety Rank of 83), and positive market sentiment in the professional investor community (Sentiment Rank of 76). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 46), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of Continental is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more
Sentiment Strategy: Professional Market Sentiment for Continental very positive
ANALYSIS: With an Obermatt Sentiment Rank of 76 (better than 76% compared with alternatives) for 2025, overall professional sentiment and engagement for the stock Continental is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the metrics below and half above average for Continental. Analyst Opinions are at a rank of 66 (better than 66% of alternative investments), which means that, currently, stock research analysts tend to recommend a stock investment in the company. Analyst Opinions Change is also positive and has a rank of 81 which means that currently, stock research experts are getting even more optimistic about investments in Continental. But Market Pulse has a low rank of 27, which means that the current professional news and professional social networks are on the negative side when discussing this company (more negative news than for 73% of competitors). This is an essential sign of caution, as it could be the forebearer of bad news. Professional Investors are also somewhat absent with a rank of 42, which means that, currently, professional investors hold less stock in this company than in 58% of alternative investment opportunities. Pros tend to invest in other companies. This is expected if the company is of a smaller size (medium or smaller). ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 76 (more positive than 76% compared with investment alternatives), Continental has a reputation among professional investors that is significantly higher than that of its competitors. While the general news feeds in the professional market are negative, the analyst recommendations are optimistic about the company, and even increase their ratings despite the negative news. This is an ambiguous situation with positive and negative signals from the professional side. Investors should be on the lookout for negative news but not worry too much about it as long as the overall news is still positive. ...read more
Value Strategy: Continental Stock Price Value better than average
ANALYSIS: With an Obermatt Value Rank of 66 (better than 66% compared with alternatives), Continental shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Continental. Price-to-Sales is 60 which means that the stock price compared with what market professionals expect for future sales is lower than for 60% of comparable companies, indicating a good value for Continental's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 75% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 61. Compared with other companies in the same industry, dividend yields of Continental are expected to be higher than for 60% of all competitors (a Dividend Yield rank of 60). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 66, is a buy recommendation based on Continental's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Continental based on its detailed value metrics.
Growth Strategy: Continental Growth Momentum low
| GROWTH METRICS | February 13, 2025 | |||||||
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| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 25 |
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| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 39 |
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| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 72 |
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| STOCK RETURNS | ||||||||
| STOCK RETURNS | 48 |
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| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 46 |
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ANALYSIS: With an Obermatt Growth Rank of 46 (better than 46% compared with alternatives), Continental shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Continental. Only Capital Growth has a good rank of 72, which means that currently professionals expect the company to grow its invested capital more than 39% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 25 which means that currently professionals expect the company to grow less than 75% of its competitors. Profit Growth with a rank of 39 and Stock Returns with a rank of 48 are also low (below 52% of alternative investments). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 46, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Continental is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. ...read more
Safety Strategy: Continental Debt Financing Safety very solid
| SAFETY METRICS | February 13, 2025 | |||||||
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| LEVERAGE | ||||||||
| LEVERAGE | 86 |
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| REFINANCING | ||||||||
| REFINANCING | 54 |
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| LIQUIDITY | ||||||||
| LIQUIDITY | 63 |
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| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 83 |
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ANALYSIS: With an Obermatt Safety Rank of 83 (better than 83% compared with alternatives) for 2025, the company Continental has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Continental is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Continental. Leverage is at 86, meaning the company has a below-average debt-to-equity ratio. It has less debt than 86% of its competitors. Refinancing is at a rank of 54, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 54% of its competitors. Finally, Liquidity is also good at a rank of 63, which means that the company generates more profit to service its debt than 63% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 83 (better than 83% compared with alternatives), Continental has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more
Combined financial peformance: Continental Top Financial Performance
| COMBINED PERFORMANCE | February 13, 2025 | |||||||
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| VALUE | ||||||||
| VALUE | 66 |
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| GROWTH | ||||||||
| GROWTH | 46 |
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| SAFETY | ||||||||
| SAFETY | 63 |
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| COMBINED | ||||||||
| COMBINED | 85 |
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ANALYSIS: With an Obermatt Combined Rank of 85 (better than 85% compared with investment alternatives), Continental (Auto Parts & Equipment, Germany) shares have much better financial characteristics than comparable stocks. Shares of Continental are a good value (attractively priced) with a consolidated Value Rank of 66 (better than 66% of alternatives), are safely financed (Safety Rank of 83, which means low debt burdens), but show below-average growth (Growth Rank of 46). ...read more
RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Continental's financial characteristics. As the company Continental's key financial metrics exhibit good value (Obermatt Value Rank of 66) but low growth (Obermatt Growth Rank of 46) while being safely financed (Obermatt Safety Rank of 83), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 66% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. ...read more
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