CONTINENTAL

Analysis of Continental share price

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Continental shares are available online via a stock account or PEA and are among the largest shares on the German stock market. Here you can find out some practical information about it, such as details of the group's activities, as well as a historical analysis of its price over the last ten years to help you set up your own analysis of this stock.

Elements that can influence the price of this asset:

Analysis N°1

The development of the group's presence in emerging economies is of course one of the points to be monitored as a priority for the opportunity it represents.

Analysis N°2

The company's policy on compliance with environmental standards will also be monitored.

Analysis N°3

The domestic and international competition of Continental and the development of the market shares of each of these players will of course be studied.

Analysis N°4

The evolution of the economic situation in certain countries such as the United States and Japan should also be monitored because of their direct impact on the company's results.

Analysis N°5

All government policies and regulations concerning export duties, taxes in the automotive industry or the overall economic situation will have an influence on the automotive manufacturing market and thus indirectly on Continental's sales.

Analysis N°6

In the same way, the increasingly rapid and significant development of alternative modes of transport such as the metro, tramway or train represents a real threat to the Continental Group and is increasingly being put forward as a means of reducing environmental impact

Analysis N°7

Finally, we will also keep a close eye on the significant volatility currently experienced by commodities and exchange rates.

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General presentation of Continental

The German Continental Group is a developer, manufacturer and seller of tyres and automotive equipment. Its core business is automotive systems such as brakes, electronics, components or control systems, but the group also produces tyres and technical elastomers.

Continental generates most of its sales in Germany and Europe but also in North America.

The Continental share price is currently quoted on the Prime Standard market of the Deutsche Boerse and is included in the calculation of the DAX 30 stock index.

Over the last ten years, the share price first experienced a significant decline between July 2007 and February 2009, falling from €107.86 to €12.95.

It then recovered with a strong and sustained uptrend that saw it reach a high of 229.15 in April 2015.

Analysis of Continental share price
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The major competitors of Continental

Before you start studying Continental's stock price, you should of course also know about its industry and its major players. Here is a quick overview of Continental's biggest competitors at the moment and their activities and characteristics.

Michelin

First of all, the Michelin Group is a major competitor of Continental. It is one of the world's leading tire manufacturers. This French company is headquartered in Clermont-Ferrand and its products are intended for different ranges of vehicles such as cars, trucks, two-wheelers, airplanes, civil engineering and agricultural machinery. It is a multinational company listed on the CAC 40 stock exchange index and has an industrial presence in more than 17 countries with over 11,700 employees.

Goodyear Tire and Rubber

We will also have to follow this American company which was created in 1898 by Frank Seiberling. This company is currently one of the leading tire manufacturers in the world just behind Continental and Michelin. The group designs and manufactures tires for cars, planes and trucks and also makes belts, hoses and other rubber products but also chemicals related to the rubber industry.

Pirelli & C

Still among Continental's major competitors is the Italian company Pirelli, which specialises in the production of tyres and is a subsidiary of ChemChina. It is currently the fifth largest producer in the world through its subsidiary Pirelli Tyre, of which it is the sole shareholder. Marco Tronchetti Provera is currently the group's CEO.

Hankook Tire

This group is a tire manufacturer based in South Korea and was established in 1941. Since 1968, the group has been known as Hankook Tire Manufacturing and also produces batteries, wheels and brake pads. Currently, Hankook is the world's seventh largest tire manufacturer.

Bridgestone Corporation

Finally, the last competitor of Continental is the Bridgestone Corporation group which is a Japanese tire manufacturer created in 1931 in Japan. Its name comes from the translation and transposition into English of ishibashi which means "stone bridge" in Japanese. Currently, Bridgestone is one of the largest tire manufacturers in the world in terms of sales.


The major partners of Continental

ADAC

In 2017, the Continental Group signed a partnership with ADAC to work on solutions to improve road safety in Germany.

Other partners

Also in 2017, Continental became the partner of BMW, Intel and Mobileye in the development of an autonomous car. As such, it will provide components and software for the project.

Nexter

Finally, the German equipment manufacturer has also teamed up with US company Nexter to develop a joint venture to develop electronic braking and steering systems for autonomous vehicles.

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The factors in favour of a rise in the Continental share price:
  • One of the most important advantages of the Continental Group is, of course, its extensive product portfolio. Thanks to its wide range of products, the company can reach a broad market segment and make a name for itself in various specialties. This protects it from the risk of a single product type and generates more revenue from different sources.
  • Continental can also rely on its extensive experience to support its development. The group has been in existence for over 140 years. Since its creation, it has been able to learn from its mistakes and acquire an excellent knowledge of the market, which facilitates the implementation of effective strategies.
  • Geographically, Continental also has an excellent international position. The brand is known all over the world and the company is a truly global enterprise. It is well represented in Africa, Europe, America, Asia and Australia, which protects it from geo-economic risks.
  • We also appreciate the expansion strategy of this company which regularly buys companies in Malaysia and India. We can therefore anticipate a strategic position in emerging markets that will allow Continental to generate even more revenue in the future.
  • Finally, from a marketing point of view and in terms of advertising and communication, Continental does not skimp on the means to make itself known. In particular, it is a sponsor of several major international sporting events such as the FIFA World Cup.
The factors in favour of a drop in the Continental share price:
  • First of all, although the Continental Group is stepping up its efforts to position itself in the most interesting international markets, particularly in the emerging markets, it is still not very visible in the Indian market and in certain target markets. This represents a significant loss of earnings for the future and possible losses of market share in the face of increasingly present and aggressive competition in these geographical sectors.
  • On the other hand, the Continental Group also has to deal with economic conditions that are often unfavorable in certain economies of the world. This applies in particular to the Japanese and American markets and the European Union. As these markets are relatively important in terms of revenues generated, these unfavorable conditions could weigh on the company's sales in the near future.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.
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