| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 101.11 | 456 |
| Intrinsic value (DCF) | 12.00 | -34 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
EnviTec Biogas AG (ETG.DE) is a leading player in the renewable utilities sector, specializing in the manufacturing and operation of biogas and biomethane plants. Headquartered in Lohne, Germany, the company operates internationally across Germany, Italy, Great Britain, Czechia, France, Denmark, the U.S., China, and Greece. EnviTec Biogas AG operates through three key segments: Plant Construction, Services, and Operation. The company provides comprehensive biogas plant services, including planning, turnkey construction, upgrading, biological and technical services, and plant management. Additionally, it generates electricity, heat, and gas from its own biogas plants, contributing to sustainable energy solutions. Founded in 2002, EnviTec Biogas AG has established itself as a key player in the biogas industry, leveraging its expertise to support the global transition to renewable energy. With a strong focus on innovation and sustainability, the company is well-positioned to capitalize on the growing demand for clean energy solutions.
EnviTec Biogas AG presents an attractive investment opportunity in the renewable energy sector, supported by its strong financial performance and growing demand for biogas solutions. In FY 2023, the company reported revenue of €427.1 million and net income of €58.5 million, with diluted EPS of €3.94. The company also demonstrated robust operating cash flow of €83.3 million, though capital expenditures were significant at €-54.5 million. With a market cap of €353.4 million and a low beta of 0.42, EnviTec offers stability in a volatile market. The dividend payout of €3 per share further enhances its appeal to income-focused investors. However, risks include exposure to regulatory changes in renewable energy policies and competition in the biogas sector. Overall, EnviTec's strong market position and international presence make it a compelling choice for investors seeking exposure to renewable utilities.
EnviTec Biogas AG holds a competitive advantage in the biogas industry through its vertically integrated business model, encompassing plant construction, services, and operations. This allows the company to capture value across the entire biogas value chain, from initial planning to long-term plant management. EnviTec's international presence, particularly in Europe and China, provides diversification and access to growing biogas markets. The company's expertise in turnkey biogas plant construction and operational management sets it apart from competitors, offering clients a one-stop solution. Additionally, EnviTec's focus on biomethane upgrading positions it well for the increasing demand for renewable natural gas. However, the company faces competition from larger energy utilities and specialized biogas firms. Its relatively smaller scale compared to multinational energy companies may limit its ability to compete on large-scale projects. Nevertheless, EnviTec's niche expertise and strong service offerings provide a solid foundation for sustained growth in the renewable energy sector.