Carbios

EU: ALCRB

€62.7m market cap

€8.2 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 the company’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. Carbios expects to receive royalty payments from Carbiolice from 2020 and will aim for a first commercial PET plant in 2023. In the meantime Carbios continues to strengthen ties with research partners and recently announced an alliance with INSA Toulouse through the laboratory Toulouse Biotechnology Institute (TBI). Carbios is establishing, with TBI, a research centre for enzymatic engineering. Our projections indicate a DCF-based valuation of c €13/share.

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 25/02/2020
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 4.8
Forecast gearing ratio (%) 0
Price performance
%
1m
3m
12m
Actual (3.2) 26.8 12.0
Relative* (3.3) 22.6 (3.8)
52-week high/low €9.9/€5.8
*% relative to local index
Key management
Jean-Claude Lumaret CEO