CARBACID INVESTMENTS PLC — DETAILED INVESTOR ANALYSIS (2025)

What Carbacid Does & How It Generates Revenue:

Carbacid Investments produces food-grade and industrial CO₂ primarily for the beverage and food industries in the region. It generates revenue through a cash-based model by selling CO₂ to breweries, carbonated beverage manufacturers, and other industrial clients, leveraging its monopoly-like market position and low production costs.

Current Share Price: KSh 30

Latest Dividend (2025): KSh 2.00 per share

Dividend Yield: 6.67% (Dividend ÷ Price = 2 ÷ 30 = 0.0667 → 6.67%)

Carbacid remains one of the NSE’s most financially disciplined, cash-rich, and consistently profitable companies. Even in a challenging economic environment, the company continues to deliver strong results, maintain debt-free operations, and reward shareholders with reliable dividends.

1. INCOME STATEMENT ANALYSIS (2024/2025)

Revenue & Profit Trends

Revenue (2025): KSh 1.33B

Revenue (2024): KSh 1.35B

➡ Slight decline due to weaker regional CO₂ demand.

Profitability Remains Strong

Profit Before Tax: Approx KSh 470M – 500M

Profit After Tax: Approx KSh 345M – 370M

Why profits remain stable:

• ✔ Monopoly-like dominance in food-grade industrial CO₂
• ✔ Low production costs vs. high value product
• ✔ Zero debt → no interest expense
• ✔ Cash-based revenue model

📌 Conclusion: Even with a slight revenue drop, Carbacid remains highly profitable and extremely stable.

2. BALANCE SHEET (2025)

Zero Debt

Carbacid carries no long-term or short-term bank loans. This places it among the strongest balance-sheet companies in Kenya.

Strong Asset Position

• Total Assets: KSh 4.29B
• Shareholders' Equity: KSh 3.51B
• Liabilities: Only KSh 775M

Balance Sheet Strength Indicators

• Equity Ratio: ~82%
• Debt Ratio: <10%
• Current Ratio: Strong
• Net Cash Position: Very strong and growing

📌 Conclusion: Carbacid has one of the top 5 strongest balance sheets on the NSE — near-zero financial risk.

3. CASHFLOW & SUSTAINABILITY ANALYSIS

Massive Positive Cashflow — Carbacid generates consistent cash due to low operational costs, efficient CO₂ extraction, and stable regional beverage/industrial demand.

Sustainability Strength:

• Environmentally responsible CO₂ extraction
• Low emissions footprint
• Stable long-term demand outlook
• Zero-debt model reduces business risk

📌 Conclusion: Carbacid is both financially and environmentally sustainable.

4. DIVIDEND STRENGTH

Carbacid is one of Kenya’s elite dividend-paying companies.

Dividend Reliability:

• ✔ Pays dividends annually
• ✔ Fully funded from cashflow (not debt)
• ✔ Strong payout ratio
• ✔ Even during weaker years, dividends remain stable

2025 Dividend Yield:

Dividend: KSh 2.00

Price: KSh 30

Yield: 6.67%

📌 Conclusion: A top-tier dividend stock — reliable income for long-term investors.

Carbacid Investments — Dividend History

5. SHARE PRICE VIEW

Price Characteristics: Historically trades between KSh 10–15 during Covid, but recently at KSh 30. Slow-moving, stable, low-volatility. Rarely driven by hype or speculation.

Why the price stays stable:

• ✔ Strong fundamentals
• ✔ Consistent dividends attract long-term holders
• ✔ Monopoly-like position
• ✔ Low supply of shares in the market

📌 Conclusion: Carbacid is a value + dividend stock, not a speculative or pump-driven stock.

6. RISKS

Carbacid faces low company-specific risk, but watch for:

• Regional demand slowdowns
• Competition from cheaper imported CO₂
• Industrial/production cycles
• Environmental compliance requirements

📌 None of these threaten company survival or dividend continuity.

7. BUY / HOLD / SELL RECOMMENDATION

Long-Term Investors → BUY

✔ Zero debt

✔ Reliable profits

✔ Strong cashflow

✔ High dividend yield

✔ Defensive business model

Dividend Investors → STRONG BUY

If you want stable, low-risk dividend income → Carbacid is one of the best options on the NSE.

Value Investors → BUY

Cheap relative to its strong earnings and balance sheet.

Short-Term Traders → HOLD

Price movement is slow. Not ideal for quick flips.

High-Risk Speculators → AVOID

Too stable, too mature — not a gambling stock.

FINAL VERDICT: STRONG BUY (For Long-Term & Dividend Investors)

• ✔ Stable earnings
• ✔ Zero debt
• ✔ Strong cashflows
• ✔ Consistent dividends
• ✔ Low risk
• ✔ High-quality management
• ✔ Real assets + real profitability

Carbacid is exactly the kind of company serious investors should hold for stability and long-term income.