ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Continental AG's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 8.30%.
As of today (2026-06-25), Continental AG's WACC % is 9.23%. Continental AG's ROIC % is 7.49% (calculated using TTM income statement data).
Continental AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Continental AG (MEX:CON N) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Continental AG's WACC % is 9.23%. Continental AG's ROIC % is 7.49% (calculated using TTM income statement data).
Continental AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Continental AG ROIC % Related Terms
Continental AG ROIC % Historical Data
* Premium members only.
The historical data trend for Continental AG's ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Parts subindustry, Continental AG's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Continental AG ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Continental AG's ROIC % distribution charts can be found below:
* The bar in red indicates where Continental AG's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Continental AG (MEX:CON N) has a ROIC % of 8.30% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Continental AG and its competitors.
Is Continental AG's ROIC % too high?
Continental AG's current ROIC % is 8.30%. The Vehicles & Parts industry median ROIC % is 5.07. Continental AG's value of 8.30% is 63.7% above this industry median. Overall, Continental AG has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Continental AG's ROIC % compare to ORLY and AZO?
Continental AG's ROIC % of 8.30% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.07. Continental AG's value of 8.30% is 63.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.07, based on 1,316 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Continental AG's current ROIC % of 8.30% is 63.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Continental AG and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Continental AG's current ROIC % is 8.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Continental AG stock overvalued right now?
Based on GuruFocus' analysis, Continental AG (MEX:CON N) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN810.93, compared to a current price of MXN1,326.80 — trading 63.6% above its estimated fair value. The current ROIC % is 8.30% and 63.7% above the Vehicles & Parts industry median of 5.07. Continental AG's overall GF Score™ is 46/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Continental AG (MEX:CON N), the current ROIC % is 8.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Continental AG (MEX:CON N) Overvalued in 2026?
Based on GuruFocus' analysis, Continental AG stock appears to be overvalued.
The current stock price of MXN1,326.80 is trading 63.6% above its estimated GF Value™ of MXN810.93.
GuruFocus considers Continental AG to be Significantly Overvalued.
Key valuation signals for MEX:CON N:
ROIC %: 8.30%
GF Value™: MXN810.93 vs. price of MXN1,326.80 (63.6% above fair value)
Industry Position: 63.7% above the Vehicles & Parts median
No single metric tells the full story. See the MEX:CON N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Following the spinoff of its automotive middleware business in 2025 and the planned sale of ContiTech, the rubber solutions business, in 2026, Continental will be a pure-play tire manufacturer. According to our research, Continental Tires is the fourth-largest branded tire manufacturer internationally, with approximately 7% market share globally, behind Michelin, Bridgestone, and Goodyear, with global market shares of around 14%, 14% and 9%, respectively. Geographically, its operations remain Europe-heavy, where it derives 52% of revenue, followed by North America, and Asia-Pacific and "other," contributing 29% and 19%, respectively. Twenty-four percent of tires are sold into the new vehicle market with automotive original equipment as customers, and 76% sold as replacement tires.
46GF Score
Get the complete analysis for MEX:CON N
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:CON N has been successfully added to your 
