€46.9m market cap

€6.8 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 FY18 results were slightly ahead of our estimates. While revenues were in line with expectations, lower costs and a larger research tax credit than we had anticipated led to net losses of €3.1m (FY18e €3.9m). Carbios confirmed that it expects to receive royalty payments from Carbiolice from 2020. Post the year end, Carbios disclosed that it had produced PET-bottles from 100% biorecycled plastic waste and announced the signing of an agreement with major industrial partners to bring its PET recycling technology to market. Recently Carbios also strengthened the Scientific Advisory Board. Year-end FY18 cash was €5.15m and Carbios now believes it has sufficient resources to pursue current developments for the next 12 months. However, these developments do not include the financing of the PET bio recycling demonstration plant for which additional funding will have to be sought.

Y/E Dec
Revenue (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 1.0 (4.9) (4.6) (86.07) N/A N/A
2018A 1.1 (4.5) (4.3) (67.39) N/A 0.0
2019E 1.2 (4.9) (4.8) (74.13) N/A N/A
2020E 1.6 (4.3) (4.2) (64.40) N/A N/A
Industry outlook

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

Last updated on 25/07/2019
Share price graph
Balance sheet
Forecast net debt (€m) 4.8
Forecast gearing ratio (%) 0
Price performance
Actual (9.3) (9.6) 1.2
Relative* (10.7) (9.7) (0.3)
52-week high/low €9.5/€4.3
*% relative to local index
Key management
Jean-Claude Lumaret CEO