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verbio Vereinigte BioEnergie AG (DE:VBK)
XETRA:VBK
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verbio Vereinigte BioEnergie (VBK) AI Stock Analysis

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DE:VBK

verbio Vereinigte BioEnergie

(XETRA:VBK)

Rating:52Neutral
Price Target:
€12.00
▲(12.57% Upside)
The most significant factor is the financial performance, which is strained due to declining revenues, profitability, and worsening cash flow. The technical analysis offers some positive momentum, but the valuation is weak with a negative P/E ratio. The earnings call suggests challenges with declining EBITDA and increasing net debt, despite some positive strategic developments.
Positive Factors
Financial Position
Verbio maintains a solid financial position with net financial debt at €164m, below the €190m self-imposed ceiling.
Operations
Delays faced in Nevada due to technical issues have now been sorted, with an expected ramp-up over the summer.
Negative Factors
GHG Certificate Prices
The challenging environment for biofuels continued, primarily due to still depressed GHG certificate prices.
Impairment
Verbio recognized a non-cash impairment of approximately €66m, primarily related to its straw biomethane plant in Iowa, due to reduced earnings potential and higher-than-expected COVID-era investment costs.

verbio Vereinigte BioEnergie (VBK) vs. iShares MSCI Germany ETF (EWG)

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 production and sale of biofuels such as biodiesel and bioethanol, which are distributed to energy companies and fuel distributors. Another significant revenue stream is the production of biomethane, which is injected into the natural gas grid and sold to both industrial and individual customers. The company also generates income from the sale of by-products, such as biofertilizers, which are derived from the production process and sold to the agricultural sector. Additionally, Verbio benefits from partnerships and collaborations with agricultural producers and energy companies, which help in securing raw materials and expanding its market reach.

verbio Vereinigte BioEnergie Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with some operational achievements such as record production volumes and strategic investment reductions, but also faced significant challenges including a decline in EBITDA, production issues in Canada, and uncertain greenhouse gas quota prices.
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 further de-bottlenecking in the U.S. plants.
Improved EBITDA in Q3
Q3 EBITDA improved year-over-year to €8.2 million from €7.3 million, thanks to developments in the biodiesel segment and trading activities.
Strategic Investment Reductions
Capital expenditure was significantly reduced from over €250 million at their peak to less than €100 million by 2025-2026, focusing on improving operating cash flow.
Positive Outlook for the U.S. Market
The Nevada RNG ethanol plant reached new peak production levels, with plans for continuous production by summer 2025. The U.S. biofuel market shows potential for better margins.
Negative Updates
Decline in EBITDA for First Nine Months
EBITDA declined sharply to €22 million from €82 million compared to the same period last year, largely due to a weaker first quarter and challenging market conditions.
Biodiesel Production Decline in Canada
Biodiesel production in Canada decreased due to regulatory changes in the U.S., impacting previous benefits from the blender's tax credit.
Challenging Margins and Revenue
Revenue fell in the Bioethanol and Biomethane segment to €181 million from €188 million, with tight margins due to high production and inventory levels.
Greenhouse Gas Quota Price Uncertainty
The greenhouse gas quota prices have not recovered significantly, with concerns over continued fraud affecting market stability.
Company Guidance
During the Verbio Earnings Call for the third quarter of the fiscal year 2024-2025, Claus Sauter, CEO, and Olaf Tröber, CFO, provided insights into the company's performance and guidance. The company reported a decline in EBITDA to €22 million from €82 million year-over-year due to weaker margins and a challenging market environment. Biodiesel production faced a slight decline, while ethanol and renewable natural gas showed record production volumes. Capital expenditure totaled €30 million for Q3 and €91.5 million for the first nine months, with a significant reduction from the previous year's €130 million. The net debt stood at €154 million by the end of March, with an equity ratio around 63%. Despite the current weak margin environment, Verbio's guidance for the fiscal year remains in the mid double-digit million-euro range, with expectations to meet the lower end of this guidance. The company anticipates a maximum net financial debt of €190 million by the fiscal year's end, with free cash flow expected to be breakeven or positive in the fourth quarter. The call highlighted strategic investments in specialty chemicals in Germany and the ethanol plant in South Bend, US, as well as a cautious approach to future growth initiatives.

verbio Vereinigte BioEnergie Financial Statement Overview

Summary
The company is experiencing declining revenues and profitability, with a negative net profit margin and increased debt. The cash flow has worsened significantly, which is concerning for liquidity.
Income Statement
55
Neutral
The income statement reveals some troubling trends. Revenue has declined significantly from 2023 to TTM 2025, with a notable drop in net income, resulting in a negative net profit margin of -2.16% for TTM. The gross profit margin also decreased compared to previous years, indicating declining profitability. However, the company maintained a gross profit margin of 17.06% and an EBITDA margin of 4.27% in the TTM, showing some operational efficiency.
Balance Sheet
70
Positive
The balance sheet displays a stable equity position with an equity ratio of 62.88% for TTM, indicating good financial stability. The debt-to-equity ratio has increased to 0.30 in the TTM period, showing a higher reliance on debt compared to previous years. Despite this, the company's return on equity has turned negative due to the net loss, which is a concern for investors. Overall, the financial position is stable but shows signs of strain.
Cash Flow
40
Negative
Cash flow analysis highlights some risks, with a negative free cash flow in TTM of -95.18 million, worsening from previous periods. The operating cash flow to net income ratio is positive at 1.13, indicating operational cash generation despite the net loss. However, the negative free cash flow and its deterioration are concerning for future liquidity and investment capacity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.49B1.67B1.97B1.81B1.03B872.40M
Gross Profit221.42M292.45M381.91M626.92M271.64M198.94M
EBITDA63.48M122.92M242.68M510.28M166.48M122.82M
Net Income-32.11M19.96M132.02M315.63M93.20M63.38M
Balance Sheet
Total Assets1.39B1.38B1.30B1.13B678.62M529.20M
Cash, Cash Equivalents and Short-Term Investments85.34M126.70M183.75M300.50M105.34M74.22M
Total Debt262.67M194.20M189.97M49.39M46.48M48.24M
Total Liabilities512.21M449.54M385.36M310.16M168.75M138.38M
Stockholders Equity871.94M925.67M909.47M816.23M507.85M389.14M
Cash Flow
Free Cash Flow-95.18M-54.38M-177.12M210.15M49.90M3.58M
Operating Cash Flow36.37M116.78M26.09M325.03M117.18M71.68M
Investing Cash Flow-93.31M-144.90M-266.43M-113.62M-46.56M-87.68M
Financing Cash Flow18.13M-19.53M112.21M-18.48M-18.76M2.23M

verbio Vereinigte BioEnergie Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.66
Price Trends
50DMA
11.50
Negative
100DMA
10.58
Positive
200DMA
10.36
Positive
Market Momentum
MACD
-0.33
Negative
RSI
49.15
Neutral
STOCH
58.10
Neutral
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 10.66 is above the 20-day moving average (MA) of 10.50, below the 50-day MA of 11.50, and above the 200-day MA of 10.36, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 58.10 is Neutral, 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.47B7.302.96%5.25%4.27%-62.52%
52
Neutral
€647.35M-3.60%1.88%-15.79%-266.57%
€10.99B-5.90%
€7.89B18.734.87%
$2.51B-3.72%0.74%
$3.86B14.945.37%3.66%
66
Neutral
€1.51B26.0129.12%1.24%1.03%25.48%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:VBK
verbio Vereinigte BioEnergie
10.66
-6.43
-37.61%
GB:0RBE
Covestro
60.52
4.79
8.60%
GB:0QDS
Evonik
16.80
-1.98
-10.54%
LNXSF
LANXESS
28.82
0.93
3.33%
WKCMF
Wacker Chemie AG
77.30
-13.45
-14.82%
DE:ACT
AlzChem Group AG
144.80
95.99
196.66%
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.Date of analysis: Jul 23, 2025