Risk factor
Very poor trading liquidity
Profitability factor
Greatly overvalued vs peers
About
Headquartered in Mannheim, Germany, and established in 2006, CropEnergies AG specializes in the production and global distribution of bioethanol and various other biofuels, primarily utilizing grain and agricultural raw materials. Beyond its core biofuel business, the company also manufactures a diverse portfolio of protein-based food and animal feed products. These include ProtiGrain, a protein feed for livestock and pets; wheat gluten for both food and feed applications; animal feed derived from stillage; and ProtiWanze, a liquid feed specifically for cattle and pigs. Additionally, CropEnergies AG produces liquefied carbon dioxide and neutral alcohol, which is supplied to the beverage, food, cosmetics, pharmaceutical, and industrial sectors. The company operates as a subsidiary of Südzucker AG.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB