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verbio Vereinigte BioEnergie (DE:VBK)
:VBK
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verbio Vereinigte BioEnergie
(LSE:VBK)
Rating:59Neutral
Price Target:
€10.00
▲(0.20%Upside)
Positive Factors
Operational Improvements
The delays faced in Nevada due to technical issues have now been sorted - expect ramp up over the summer.
Profitability
Profitability is expected to recover by a couple of points, particularly as the US ramps up.
Negative Factors
EBITDA Guidance
Verbio announced a substantial cut to its FY24/25 EBITDA guidance due to unforeseen technical quality problems at the existing plant in Nevada, US.
GHG Certificate Prices
Subdued GHG certificate prices continue to weigh on.
verbio Vereinigte BioEnergie (VBK) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€636.20M
Dividend Yield2%
Average Volume (3M)91.44K
Price to Earnings (P/E)―
Beta (1Y)1.39
Revenue Growth-15.79%
EPS Growth-266.57%
CountryDE
Employees1,521
SectorEnergy
Sector Strength54
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.22
Shares Outstanding63,715,480
10 Day Avg. Volume85,023
30 Day Avg. Volume91,437
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)2.57
Price to Sales (P/S)0.00
P/FCF Ratio-13.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€12.65Price Target Upside26.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
verbio Vereinigte BioEnergie Business Overview & Revenue Model
Company DescriptionVERBIO Vereinigte BioEnergie AG produces and supplies biofuels in Germany and rest of Europe. The company's products include biodiesel, bioethanol, biomethane, biosterol, bioglycerin, and liquid fertilizers. The company offers its products to oil corporations, oil traders, independent filling stations, haulage companies, public utilities, and vehicle fleets. VERBIO Vereinigte BioEnergie AG was founded in 2006 and is headquartered in Leipzig, Germany.
How the Company Makes MoneyVerbio makes money primarily through the sale of its biofuel products, including biodiesel, bioethanol, and biomethane. These products are sold to both domestic and international markets, catering to the transportation sector's demand for renewable energy sources. The company also generates revenue from the sale of agricultural by-products, such as animal feed, produced during the biofuel manufacturing process. Verbio benefits from government subsidies and incentives for renewable energy, which support their operations and profitability. Additionally, the company may engage in strategic partnerships and collaborations to enhance its market reach and technological capabilities.
verbio Vereinigte BioEnergie Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q3-2025)
| % Change Since: -4.95%|
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Neutral
The earnings call revealed mixed results with record production volumes and improved EBITDA in Q3, but significant challenges remain due to declining biodiesel production, a substantial drop in annual EBITDA, and increased net debt. Positive developments in ethanol margins and strategic partnerships indicate potential future growth.Q3-2025 Updates
Positive Updates
Record Production Volumes
Ethanol and renewable natural gas (Biomethane) reported record production volumes, driven by efficiency gains in Europe and better utilization at plants in Nevada and India.
Improved EBITDA in Q3
Q3 EBITDA improved year-over-year to €8.2 million from €7.3 million, driven by developments in the biodiesel segment and trading activities.
Positive Outlook for Ethanol Margins
Ethanol margins are showing improvement supported by stronger fundamentals for corn oil, reduced ethanol stock levels, and higher blending demand.
Increase in Greenhouse Gas Quota Prices
A slight rise in greenhouse gas quota prices was observed, with expectations for further recovery as regulatory scrutiny increases.
Strategic Partnerships and Investments
Active measures to strengthen long-term competitiveness through strategic investment choices and cost measures, including partnerships with Gail in India.
Negative Updates
Decline in Biodiesel Production
Biodiesel production declined due to commercial factors in Canada and regulatory changes in the U.S., which impacted the market environment.
Significant EBITDA Decline
EBITDA declined to €22 million from €82 million in the previous year, primarily due to a weak first quarter and challenging market conditions.
Challenges in Biomethane Segment
Decrease in revenue and EBITDA in the Biomethane segment, impacted by challenging market conditions and startup costs of growth projects.
Increased Net Debt
Net debt increased to €154 million, with expectations to reach a maximum of €190 million by the end of the financial year.
Delayed Full Utilization in Nevada
The Nevada plant ramp-up is delayed, with full utilization now expected in the next financial year due to technical issues and lack of experience.
Company Guidance
During the earnings call for Verbio's third quarter of the fiscal year 2024-2025, the company provided guidance indicating a cautious outlook amidst challenging market conditions. The guidance for the fiscal year remains unchanged at the mid double-digit million-euro range, with expectations to come in at the lower end of the EBITDA guidance due to the weak margin environment. The company highlighted a decline in EBITDA to €22 million from €82 million year-over-year, primarily due to a weak first quarter. Capital expenditure was reduced to €30 million in Q3, with a total of €91.5 million for the first nine months, compared to €130 million the previous year. The net debt was at €154 million, with a maximum expected to reach €190 million by the end of the fiscal year. The equity ratio stood at around 63%. For the third quarter, EBITDA improved year-over-year to €8.2 million from €7.3 million. The company anticipates a slight recovery in spreads, with free cash flow expected to be breakeven or positive during the fourth quarter. The guidance emphasized the importance of strategic investments and cost measures to enhance long-term competitiveness.verbio Vereinigte BioEnergie Financial Statement Overview
Summary
Verbio's financial performance is moderate with challenges in revenue and profitability margins. The balance sheet is strong with low leverage, but declining cash flow poses risks if negative trends persist.Income Statement
The company has experienced fluctuations in its revenue, with a decline in the most recent TTM data compared to previous years. Gross profit margin has decreased over time, indicating cost pressures or reduced pricing power. The net profit margin has turned negative in the TTM, reflecting a challenging period. EBIT and EBITDA margins are also declining, highlighting reduced operational efficiency.65
Positive
Balance Sheet
The company's balance sheet remains strong with a high equity ratio and manageable debt levels. The debt-to-equity ratio has increased slightly but remains low, indicating prudent financial management. Return on equity has been positive but shows a declining trend, aligning with the recent profitability pressures.78
Positive
Cash Flow
Cash flow from operations has been volatile, with a recent decline in free cash flow due to increased capital expenditures. The free cash flow to net income ratio is concerning, particularly with negative free cash flow in the TTM. Operating cash flow remains positive, which is a positive sign amid profitability challenges.55
Neutral
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.50B | 1.66B | 1.97B | 1.81B | 1.03B | 872.40M | Gross Profit |
| 227.06M | 324.53M | 381.91M | 610.89M | 257.74M | 184.37M | EBIT |
| 9.23M | 69.59M | 198.75M | 462.02M | 136.63M | 91.92M | EBITDA |
| 62.58M | 122.92M | 242.48M | 494.81M | 166.48M | 122.82M | Net Income Common Stockholders |
| -29.14M | 19.96M | 132.02M | 315.63M | 93.20M | 63.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 106.85M | 123.19M | 183.75M | 300.50M | 105.62M | 74.22M | Total Assets |
| 1.40B | 1.38B | 1.30B | 1.13B | 678.62M | 529.20M | Total Debt |
| 228.76M | 194.20M | 189.97M | 49.39M | 46.48M | 48.24M | Net Debt |
| 139.35M | 71.01M | 19.66M | -250.23M | -58.54M | -5.64M | Total Liabilities |
| 494.06M | 449.54M | 385.36M | 310.16M | 168.75M | 138.38M | Stockholders Equity |
| 901.23M | 925.67M | 909.47M | 816.23M | 507.85M | 389.14M |
| Cash Flow | Free Cash Flow | ||||
| -69.04M | -54.38M | -177.12M | 210.15M | 49.90M | 3.58M | Operating Cash Flow |
| 69.57M | 116.78M | 26.09M | 325.03M | 117.18M | 71.68M | Investing Cash Flow |
| -100.78M | -144.90M | -266.43M | -113.62M | -46.56M | -87.68M | Financing Cash Flow |
| 6.71M | -19.53M | 112.21M | -18.48M | -18.76M | 2.23M |
verbio Vereinigte BioEnergie Technical Analysis
Positive
9.98
Price Trends
9.40
Positive
9.40
Positive
11.50
Negative
Market Momentum
0.05
Negative
58.13
Neutral
85.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:VBK, the sentiment is Positive. The current price of 9.98 is above the 20-day moving average (MA) of 9.50, above the 50-day MA of 9.40, and below the 200-day MA of 11.50, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 85.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:VBK.
verbio Vereinigte BioEnergie Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | €636.20M | ― | -3.60% | 2.00% | -15.79% | -266.57% | |
58 Neutral | $7.43B | 3.43 | -4.49% | 10.08% | 0.81% | -49.42% | |
| €11.02B | ― | -6.00% | ― | ― | ― | ||
| €9.03B | 29.96 | 3.25% | 6.09% | ― | ― | ||
| $2.69B | ― | -3.92% | 0.36% | ― | ― | ||
| $3.73B | 14.23 | 5.37% | 3.77% | ― | ― | ||
75 Outperform | €1.29B | 23.86 | 29.46% | 1.42% | 2.51% | 56.13% |
* Energy Sector Average
Performance Comparison
DE:VBK
verbio Vereinigte BioEnergie
9.99
-9.57
-48.94%
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18.90
1.25
7.08%
LNXSF
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30.72
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27.57%
WKCMF
Wacker Chemie AG
72.60
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128.20
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182.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.