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verbio Vereinigte BioEnergie AG (DE:VBK)
XETRA:VBK
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verbio Vereinigte BioEnergie
(XETRA:VBK)
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Rating:52Neutral
Price Target:
€12.00
▲(7.33% 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
Negative Factors
verbio Vereinigte BioEnergie (VBK) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€679.21M
Dividend Yield1.77%
Average Volume (3M)111.86K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth-15.79%
EPS Growth-266.57%
CountryDE
Employees1,521
SectorEnergy
Sector Strength52
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.22
Shares Outstanding63,715,480
10 Day Avg. Volume104,669
30 Day Avg. Volume111,856
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€12.40Price Target Upside10.91% Upside
Rating ConsensusHold
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 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
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.55
Neutral
Balance Sheet
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.70
Positive
Cash Flow
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.49B | 1.67B | 1.97B | 1.81B | 1.03B | 872.40M |
| Gross Profit | 221.42M | 292.45M | 381.91M | 626.92M | 271.64M | 198.94M |
| EBITDA | 63.48M | 122.92M | 242.68M | 510.28M | 166.48M | 122.82M |
| Net Income | -32.11M | 19.96M | 132.02M | 315.63M | 93.20M | 63.38M |
Balance Sheet | ||||||
| Total Assets | 1.39B | 1.38B | 1.30B | 1.13B | 678.62M | 529.20M |
| Cash, Cash Equivalents and Short-Term Investments | 85.34M | 126.70M | 183.75M | 300.50M | 105.34M | 74.22M |
| Total Debt | 262.67M | 194.20M | 189.97M | 49.39M | 46.48M | 48.24M |
| Total Liabilities | 512.21M | 449.54M | 385.36M | 310.16M | 168.75M | 138.38M |
| Stockholders Equity | 871.94M | 925.67M | 909.47M | 816.23M | 507.85M | 389.14M |
Cash Flow | ||||||
| Free Cash Flow | -95.18M | -54.38M | -177.12M | 210.15M | 49.90M | 3.58M |
| Operating Cash Flow | 36.37M | 116.78M | 26.09M | 325.03M | 117.18M | 71.68M |
| Investing Cash Flow | -93.31M | -144.90M | -266.43M | -113.62M | -46.56M | -87.68M |
| Financing Cash Flow | 18.13M | -19.53M | 112.21M | -18.48M | -18.76M | 2.23M |
verbio Vereinigte BioEnergie Technical Analysis
Positive
11.18
Price Trends
10.92
Positive
10.77
Positive
10.29
Positive
Market Momentum
0.07
Negative
57.75
Neutral
67.40
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 11.18 is above the 20-day moving average (MA) of 10.47, above the 50-day MA of 10.92, and above the 200-day MA of 10.29, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 67.40 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | 1.45B | 24.61 | 26.31% | 1.27% | 1.03% | 25.48% | |
64 Neutral | 7.25B | 16.95 | 2.46% | 7.52% | -2.62% | 0.00% | |
52 Neutral | €679.21M | ― | -3.60% | 1.77% | -15.79% | -266.57% | |
48 Neutral | 3.14B | 13.28 | 3.13% | 3.95% | -10.63% | -23.15% | |
48 Neutral | 10.15B | -27.49 | -6.14% | ― | -1.98% | 0.00% | |
47 Neutral | 1.96B | -11.86 | -4.13% | 0.44% | -2.75% | 83.47% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
DE:VBK
verbio Vereinigte BioEnergie
11.18
-3.32
-22.90%
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-19.71%
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-10.15%
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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.