Carbios

EU: ALCRB

€36m market cap

€8.01 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 retains sufficient cash to finance its business until H219 and it recently secured €4.1m (spread over 39 months) of funding from ADEME in order to accelerate the industrialisation of the biorecycling of PET plastics and fibres. Carbios has also announced that it had reduced the duration of PET enzymatic hydrolysis (on plastic bottles), to the point where it has attained a conversion rate of 97% in only 16 hours. The recent disclosure that Carbios has signed an agreement with Novozymes to produce Carbios’s proprietary enzymes (to subsidiary Carbiolice) reinforces the view that Carbios is making significant strides towards the commercialisation of its technology and moving beyond the status of a research-based company. Carbios confirmed that it expects to receive royalty payments from Carbiolice from 2020 (commercial launch). Our DCF indicates a valuation for Carbios of €15/share.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 8.9 3.3 3.6 128.00 6.3 N/A
2017A 1.0 (4.9) (4.6) (86.07) N/A 0.0
2018E 1.1 (4.8) (4.6) (85.58) N/A N/A
2019E 1.2 (5.0) (4.8) (89.02) N/A N/A
Last updated on 20/03/2019
Industry outlook

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

Last updated on 20/03/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 8.5
Forecast gearing ratio (%) 0
Price performance
%
1m
3m
12m
Actual (1.2) 64.5 2.0
Relative* (4.5) 43.6 0.8
52-week high/low €9.5/€4.3
*% relative to local index
Key management
Jean-Claude Lumaret CEO