Intrinsic Value Carbios SAS (ALCRB.PA)

• Previous Close: €10.00
• Intrinsic Value: €7.11
• Upside potential: -29%

Stock Valuation Context

Business Model And Market Position

Carbios SAS is a pioneering green chemistry company specializing in enzymatic solutions for polymer biodegradation and recycling. The company’s core offerings include EVANESTO, an enzymatic solution for degrading PLA-based single-use plastics, and a proprietary enzymatic recycling process for PET, transforming plastic waste into reusable materials. Operating in the specialty chemicals sector, Carbios targets the growing demand for sustainable alternatives in packaging, textiles, and medical applications. Its strategic partnership with Novozymes enhances its ability to scale enzyme production, positioning it as a leader in bio-recycling innovation. The company’s focus on circular economy principles aligns with global regulatory shifts toward plastic waste reduction, giving it a competitive edge in Europe’s evolving green materials market. Despite being in the development phase, Carbios has carved a niche by addressing critical environmental challenges through biotechnology, differentiating itself from traditional chemical recyclers.

Revenue Profitability And Efficiency

Carbios reported modest revenue of €136,000 in the latest fiscal year, reflecting its early-stage commercialization efforts. The company’s net loss of €33.1 million and negative operating cash flow of €30.2 million highlight significant R&D and capital expenditures, typical of a biotech firm in the growth phase. Capital expenditures of €62.6 million underscore heavy investment in scaling its enzymatic recycling technology.

Earnings Power And Capital Efficiency

With a diluted EPS of -€1.97, Carbios currently lacks earnings power as it prioritizes technology development over profitability. The negative cash flow and high capex indicate capital-intensive operations, though its €89.8 million cash reserve provides runway for further innovation and commercialization efforts.

Balance Sheet And Financial Health

Carbios maintains a solid liquidity position with €89.8 million in cash and equivalents, offset by €45.7 million in total debt. The balance sheet reflects a growth-oriented strategy, with sufficient liquidity to fund near-term operations but reliant on future financing or revenue generation to sustain long-term viability.

Growth Trends And Dividend Policy

Growth is driven by enzymatic recycling adoption, though revenue remains negligible. The company reinvests all cash flows into R&D and infrastructure, with no dividends paid, aligning with its focus on scaling proprietary technologies.

Valuation And Market Expectations

The market values Carbios at €105.5 million, reflecting high expectations for its bio-recycling solutions. A beta of 2.155 indicates significant volatility, typical of early-stage green tech firms betting on regulatory tailwinds and commercial scalability.

Strategic Advantages And Outlook

Carbios’ enzymatic processes offer a unique, sustainable alternative to mechanical recycling, with potential for industry disruption. Partnerships and regulatory support for circular economy solutions bolster its outlook, but execution risks and competition from conventional recyclers remain key challenges.

Sources

Company filings, Euronext Paris disclosures