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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 H1 2025-2026 Earnings: Strong Performance Amidst Regulatory Noise

Verbio SE reported a robust financial performance for the half year and second quarter of 2025-2026, with revenue increasing due to higher sales volumes and demand for greenhouse gas quotas. The company's EPS came in at €0.05, below estimates of €0.09. EBITDA was driven primarily by the Bioethanol/Biomethane segment, which saw a significant increase to €30.1 million in the second quarter. The company's operating cash flow improved by €21.7 million, although CapEx amounted to €47.8 million, resulting in an increase in net debt to €173 million.

Publication Date: Mar -05

📋 Highlights
  • Full-Year EBITDA Guidance: Expects upper end of prior high double-digit million euro range, driven by Bioethanol/Biomethane segment (Q2 EBITDA: EUR 30.1M).
  • Operating Cash Flow Growth: Improved by EUR 21.7M, offset by EUR 47.8M CapEx, leading to net debt increase to EUR 173M.
  • Greenhouse Gas Quota Market: Removal of double counting in 2027 to boost CO2 savings prices, with advanced biodiesel premiums at EUR 1,244/ton (vs. EUR 912 for conventional).
  • Production Expansion: Ethanolysis plant in Bitterfeld to launch in H2 2026, targeting renewable chemicals; bioethanol/biomethane output rose from Nevada and South Bend plants.
  • Geographic Diversification: Trading now accounts for 50% of physical volumes, expanding into France and Belgium, with plans for further growth.

Segmental Performance

The Bioethanol/Biomethane segment was the main driver of the increase in group EBITDA, driven by the ramp-up of the bioethanol biomethane plant in Nevada and better uptime at the ethanol plant in South Bend. The Biodiesel segment saw record production in Europe, although overall production was lower due to a seasonal slowdown in Canada. As Olaf Troeber, CFO, noted, "the positive development in the greenhouse gas quota market, with the stabilization of prices and the elimination of double counting, will now be removed in 2027," which will benefit Verbio's production.

Regulatory Developments and Outlook

The company expects a moderate increase in free cash flow and reduction in net financial debt year-over-year. Verbio is on track with its construction of an ethanolysis plant in Bitterfeld, which will produce renewable molecules for the chemical industry starting in the second half of 2026. The new legislation in 2026 will improve Verbio's economics due to increased prices for greenhouse gas savings per ton of biodiesel. Analysts estimate next year's revenue growth at 11.1%.

Valuation

Verbio's current valuation metrics indicate a mixed picture. The stock trades at a P/E Ratio of -17.08, P/B Ratio of 2.58, and EV/EBITDA of 42.82. The company's ROE and ROIC are negative, at -14.46% and -8.55%, respectively. The Net Debt / EBITDA ratio stands at 4.57. These metrics suggest that the market is pricing in significant growth expectations, although the company's current financial performance is still challenged by regulatory uncertainties.

Future Prospects

Verbio is well-positioned to benefit from the changing regulatory landscape, particularly with the elimination of double counting in 2027. The company's expansion into new markets, including the development of its ethanolysis plant, is expected to drive growth in the coming years. As Verbio continues to navigate the complexities of the biofuel market, its focus on sustainable production and innovative technologies is likely to remain a key driver of its success.

3. NewsRoom

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Verbio SE (XTER:VBK) (Half Year 2026) Earnings Call Highlights: Record Production and Strong ...

Feb -18

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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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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: 4.5/10

Value: 5.7

Growth: 6.9

Quality: 7.0

Yield: 1.9

Momentum: 2.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Treatt

A-Score: 4.3/10

Value: 7.8

Growth: 6.0

Quality: 6.2

Yield: 5.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Carbios

A-Score: 3.6/10

Value: 7.4

Growth: 0.3

Quality: 4.7

Yield: 0.0

Momentum: 9.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Gurit

A-Score: 3.3/10

Value: 7.6

Growth: 1.4

Quality: 1.5

Yield: 4.4

Momentum: 3.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
VERBIO

A-Score: 3.2/10

Value: 6.6

Growth: 2.0

Quality: 1.1

Yield: 0.0

Momentum: 9.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Avantium

A-Score: 2.3/10

Value: 8.4

Growth: 3.0

Quality: 2.6

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

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

39.56$

Current Price

39.56$

Potential

-0.00%

Expected Cash-Flows