Verbio VBK.DE
What does Verbio do?
Verbio is a manufacturer of biofuels and bio-based products headquartered in Germany. The company produces biodiesel, bioethanol and biomethane and supplies mainly oil companies, traders and energy suppliers, which use these products to meet statutory greenhouse gas reduction quotas in transport. In addition, by-products such as pharmaceutical glycerin, animal feed, fertilizers and phytosterols arise, which are sold in pharmaceutical, cosmetics, food and agricultural markets.
Reporting is done in the segments biodiesel, bioethanol/biomethane and other. Verbio operates plants in Europe and is also active in North America. The company mainly uses agricultural raw materials as well as residues such as straw, and presents itself with a strong integration of production, logistics and trading. In terms of competition, Verbio faces other European biofuel producers, agricultural and energy groups, and international importers. Technological developments, for example in biomethane from residues or in specialty chemicals such as catalysts, are intended to reduce dependence on the pure fuel business.
Score profile
Rank vs. Specialty Chemicals (37 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Verbio ranks below average in the group Specialty Chemicals (3.4/10). On growth, the company ranks above average in the group Specialty Chemicals (6.5/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Specialty Chemicals (5.5/10). On financial strength, Verbio ranks above average in the group Specialty Chemicals (6.4/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 9.8x | 15.6x | better than 85 % |
| Trailing P/E | 25.5x | 27.9x | better than 60 % |
| PEG ratio | 5.8x | 1.8x | better than 4 % |
| EV/EBITDA | 10.1x | 11.9x | better than 61 % |
| Price/sales | 0.9x | 1.6x | better than 72 % |
| Price/book | 2.0x | 2.0x | better than 53 % |
| Revenue growth | 22.7% | 8.1% | better than 93 % |
| Earnings growth | 0.0% | 0.0% | better than 38 % |
| Gross margin | 18.0% | 31.6% | better than 18 % |
| Operating margin | 11.7% | 12.7% | better than 45 % |
| Net margin | 3.4% | 5.3% | better than 28 % |
| Return on equity | 8.2% | 9.6% | better than 45 % |
| Debt/equity | 27.1% | 68.5% | better than 84 % |
| Current ratio | 1.7x | 1.8x | better than 36 % |
| Free cash flow yield | 5.6% | 3.9% | better than 72 % |
| Dividend yield | 0.8% | 1.8% | – |
| Payout ratio | 0.0% | 40.8% | – |
| Beta | 0.03 | 0.90 | – |
Valuation: what is Verbio worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Verbio a model range of 30.59 EUR to 60.52 EUR per share.
4 analysts, average rating “Strong buy”, average price target 45.00 EUR (+76.3%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Statutory quotas and rules on greenhouse gas reduction in transport largely determine demand and prices for biofuels.
- The spread between selling prices for biodiesel, bioethanol and biomethane and the costs of agricultural raw materials shapes profitability.
- Plant utilization, process efficiency and the sale of by-products additionally influence results.
Risks
- Changes in political support, quota rules or crediting rules can change the business model considerably.
- Fluctuating raw material prices and harvest conditions, as well as volatile energy and fuel prices, weigh on margins.
- Imports of biofuels from third countries can increase price pressure in Europe and intensify competition.
What to look for with Verbio
The gross profit margin by segment is particularly informative because it shows the spread between product and raw material prices, which largely determines earnings.