Carbios

EU: ALCRB

€47.9m market cap

€6.94 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

The macro environment for Carbios’s technology and processes remains favourable and Carbios’s enzyme-based technology for the decomposition of plastic polymers is well placed to exploit the trend for the minimisation of plastic waste. Carbios is focused on the biodegradation and enzymatic recycling of two polymers, PET and PLA, and has made significant advances towards the commercialisation of its technology in both areas. Carbios has confirmed that it expects to receive royalty payments from Carbiolice from 2020 and will aim for a first commercial PET plant in 2023. We have revised our DCF valuation to take account of the increased number of shares in issue as a result of the rights issue and the latest projections for the commercial deployment of Carbios’s technology. Our updated projections indicate a DCF-based valuation of c €13/share (€15/share previously).

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 1.0 (4.4) (4.6) (86.07) N/A N/A
2018A 1.1 (3.9) (4.3) (67.39) N/A N/A
2019E 1.2 (4.4) (4.8) (59.73) N/A N/A
2020E 1.7 (3.6) (4.0) (42.02) N/A N/A
Industry outlook

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

Last updated on 18/11/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 4.8
Forecast gearing ratio (%) 0
Price performance
%
1m
3m
12m
Actual (1.4) 5.5 10.2
Relative* (6.0) (5.3) (5.2)
52-week high/low €8.7/€4.3
*% relative to local index
Key management
Jean-Claude Lumaret CEO