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1. Company Snapshot

1.a. Company Description

VERBIO 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.

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1.b. Last Insights on VBK

VERBIO Vereinigte BioEnergie AG's recent performance has been negatively impacted by concerns surrounding its second-quarter results, which may have fallen short of expectations. Insiders, who hold a significant 63% stake in the company, may be under pressure to drive growth. Additionally, the company's high insider ownership could lead to a lack of diversity in decision-making, potentially hindering innovation and progress.

1.c. Company Highlights

2. Verbio's Q1 FY2025/26 Earnings: A Strong Start

Verbio's financial performance in the first quarter of FY2025/26 was marked by a significant improvement in EBITDA, which rose to €15.4 million from -€6.6 million in the same period last year, driven by higher coproduct revenues and favorable developments in commodity forwards and ForEx valuations. The company's actual EPS came out at '-0.06', relative to estimates at '-0.03', indicating a still challenging but improving environment. Revenue growth is expected to be around 7.9% next year, according to analysts' estimates.

Publication Date: Nov -23

📋 Highlights
  • EBITDA Surge:: EBITDA jumped to €15.4 million from -€6.6 million, driven by higher coproduct revenues and favorable commodity forwards.
  • Record Biodiesel Output:: Achieved 167,000 tonnes of biodiesel (94% capacity utilization) and 10% ethanol growth to 154,000 tonnes.
  • Strategic Investments:: Net debt increase tied to €20 million in projects, including a specialty chemicals unit and inventory plant.
  • Segment Performance:: Biodiesel EBITDA at €22.6 million; Bioethanol/Biomethane reduced losses to -€9.5 million amid North American gains.
  • Market Outlook:: EBITDA guidance set for high double-digit million euros, leveraging RED III policies and ethanol price support in Europe/U.S.

Segment-wise Performance

The Biodiesel segment delivered strong earnings, with EBITDA at €22.6 million, primarily due to an improved gross margin. The Bioethanol and Biomethane segment reduced losses to -€9.5 million, driven by positive developments in North America. Biomethane production increased by 24% year-on-year, indicating a strong growth trajectory for this segment.

Market Environment and Outlook

The company sees a favorable market environment ahead, with factors such as the transposition of RED III in the Netherlands supporting ethanol prices in Europe. Verbio's CFO, Olaf Troeber, noted that the company is confident that it will complete its investment by mid to end of next year and then start the ramp-up phase, indicating a positive outlook for future growth.

Valuation and Metrics

Verbio's current valuation metrics indicate a mixed picture, with a P/E Ratio of -7.43, P/B Ratio of 1.37, and EV/EBITDA of 79.89. The Net Debt / EBITDA ratio stands at 13.28, highlighting the company's leverage. The ROE and ROIC are negative, at -16.23% and -11.63%, respectively, indicating that the company still faces challenges in generating returns.

Investment and Growth Plans

The company is focusing on its current projects, with investments in the specialty chemicals unit in Bitterfeld and an inventory production plant in South Bend, Indiana, totaling around €20 million. Verbio does not plan to invest in a new plant in other countries outside Europe within the next 3 years, indicating a focus on consolidating its existing operations.

RED III Framework and Future Prospects

3. NewsRoom

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European Stocks Trading Below Estimated Intrinsic Values

Nov -05

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November 2025's Global Stock Selections Possibly Below Fair Value Estimates

Nov -05

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3 European Stocks Estimated To Be Up To 45.8% Below Intrinsic Value

Nov -05

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European Stocks With Estimated Discounts Up To 47.3% That May Offer Value

Oct -23

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A Look at Verbio (XTRA:VBK) Valuation Following Dividend Suspension and Strategic North America Expansion

Oct -10

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Here's What Analysts Are Forecasting For Verbio SE (ETR:VBK) After Its Full-Year Results

Sep -29

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A Look At The Fair Value Of Verbio SE (ETR:VBK)

Sep -24

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Shareholders in Verbio (ETR:VBK) are in the red if they invested three years ago

Jun -26

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.79%)

6. Segments

Biodiesel

Expected Growth: 2.5%

VERBIO's biodiesel growth is driven by increasing demand for renewable energy, government incentives for biofuels, and rising crude oil prices. Additionally, the company's focus on sustainable production and expanding capacity utilization contribute to its 2.5% growth rate.

Bioethanol

Expected Growth: 3.5%

VERBIO's bioethanol growth is driven by increasing demand for sustainable energy, government incentives for biofuels, and rising crude oil prices. Additionally, VERBIO's efficient production process, strong distribution network, and growing market share in the European bioethanol market contribute to its 3.5% growth rate.

Other

Expected Growth: 2.0%

VERBIO's 2.0 growth driven by increasing demand for sustainable energy, expansion into new markets, and strategic acquisitions. Government incentives and regulations supporting bioenergy adoption, coupled with declining production costs, further fuel growth. Additionally, VERBIO's diversified product portfolio and strong distribution network contribute to its growth momentum.

7. Detailed Products

Biodiesel

VERBIO's biodiesel is a renewable energy source produced from vegetable oils and fats, used as a substitute for fossil fuels in diesel engines.

Bioethanol

VERBIO's bioethanol is a biofuel produced from biomass, used as a blending component in gasoline to reduce greenhouse gas emissions.

Biogas

VERBIO's biogas is a renewable energy source produced from organic waste, used to generate electricity, heat, and fuel.

Bio-LNG

VERBIO's bio-LNG is a liquefied biomethane fuel produced from biogas, used as a sustainable alternative to fossil fuels in transportation and industry.

Bio-CNG

VERBIO's bio-CNG is a compressed biomethane fuel produced from biogas, used as a sustainable alternative to fossil fuels in transportation and industry.

8. VERBIO Vereinigte BioEnergie AG's Porter Forces

Forces Ranking

Threat Of Substitutes

VERBIO Vereinigte BioEnergie AG operates in the bioenergy industry, which has a moderate threat of substitutes. The company's products, such as biodiesel and bioethanol, have substitutes in fossil fuels, but the increasing demand for renewable energy sources reduces the threat of substitutes.

Bargaining Power Of Customers

VERBIO Vereinigte BioEnergie AG's customers are primarily large energy companies and distributors, which have limited bargaining power due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

VERBIO Vereinigte BioEnergie AG's suppliers of raw materials, such as vegetable oils and grains, have a moderate level of bargaining power due to the company's dependence on these inputs and the limited number of suppliers.

Threat Of New Entrants

The bioenergy industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which reduces the threat of new entrants and gives VERBIO Vereinigte BioEnergie AG a competitive advantage.

Intensity Of Rivalry

The bioenergy industry is highly competitive, with several established players competing for market share. VERBIO Vereinigte BioEnergie AG faces intense rivalry from companies such as Neste and Total, which increases the competitive pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.28%
Debt Cost 3.95%
Equity Weight 82.72%
Equity Cost 9.40%
WACC 8.46%
Leverage 20.89%

11. Quality Control: VERBIO Vereinigte BioEnergie AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SP Group

A-Score: 4.4/10

Value: 6.3

Growth: 6.9

Quality: 6.2

Yield: 1.9

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Treatt

A-Score: 3.9/10

Value: 6.7

Growth: 6.0

Quality: 6.2

Yield: 3.8

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Gurit

A-Score: 2.7/10

Value: 7.6

Growth: 1.4

Quality: 1.5

Yield: 4.4

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Carbios

A-Score: 2.5/10

Value: 7.8

Growth: 0.3

Quality: 4.5

Yield: 0.0

Momentum: 2.5

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Avantium

A-Score: 2.3/10

Value: 8.2

Growth: 3.1

Quality: 2.6

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
VERBIO

A-Score: 2.2/10

Value: 7.0

Growth: 2.0

Quality: 1.1

Yield: 1.2

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.33$

Current Price

18.33$

Potential

-0.00%

Expected Cash-Flows