Carbios

EU: ALCRB

€229.1m market cap

€28.7 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. The company’s financial position has been considerably strengthened by the recent €27m capital increase (issue of 1.028m shares at a price of €26.25/share) and the company now expects to have sufficient financial resources to cover its investment and working capital requirements until 2Q23. The money raised will allow Carbios to fund its ongoing operating expenses, finance the second stage of the construction of the PET demonstration plant and to participate in a capital increase by its subsidiary Carbiolice. We anticipate that Carbios will also continue to reinforce its position in the PET recycling market by forging partnerships with collectors and producers of plastic, as well as strengthening its ties with research partners. Our forecasts are under review.

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 22/09/2020
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Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 4.8
Forecast gearing ratio (%) 0
Price performance
%
1m
3m
12m
Actual (8.6) 79.4 373.6
Relative* (6.2) 84.7 461.9
52-week high/low €39.0/€5.9
*% relative to local index
Key management
Jean-Claude Lumaret CEO