Carbios

EU: ALCRB

€147.8m market cap

€21.4 last close

Carbios develops enzyme-based processes for biodegradation and bioproduction of plastics, with a long-term aim of displacing current recycling and production practices.

Investment summary

Carbios’s technology and processes ensure that it is well placed to exploit the trend for the minimisation of plastic waste. FY19 results were broadly in line with our expectations and the company began 2020 on a sound footing. We expect Carbios to begin constructing its PET demonstration plant in FY20 assisted by (as recently announced) TechnipFMC. We also forecast that subsidiary, Carbiolice, will start generating commercial revenues in FY20 and that Carbios will reinforce its position in the PET recycling market by forging partnerships with collectors and producers of plastic. Carbios continues to strengthen ties with research partners and also recently entered into a joint development agreement with Novozymes to produce its PET-degrading enzymes. We understand that the COVID-19 pandemic has yet to have a significant impact on the business although R&D activities have been suspended.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2018A 1.1 (3.9) (4.3) (67.39) N/A N/A
2019A 1.5 (4.3) (4.6) (64.87) N/A N/A
2020E 1.7 (6.4) (6.7) (79.79) N/A N/A
2021E 1.5 (6.8) (7.1) (84.45) N/A N/A
Industry outlook

Growing focus on sustainability provides an attractive market opportunity for Carbios’s technology.

Last updated on 02/07/2020
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 4.8
Forecast gearing ratio (%) 0
Price performance
%
1m
3m
12m
Actual 35.4 201.8 212.9
Relative* 31.1 152.0 246.1
52-week high/low €22.6/€5.8
*% relative to local index
Key management
Jean-Claude Lumaret CEO