DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAR - US2372661015 - Common Stock
34.97 USD
-0.46 (-1.3%)
34.97 USD
0 (0%)
Overall DAR gets a fundamental rating of 4 out of 10. We evaluated DAR against 86 industry peers in the Food Products industry. Both the profitability and the financial health of DAR get a neutral evaluation. Nothing too spectacular is happening here. DAR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year DAR was profitable.
DAR had a positive operating cash flow in the past year.
Each year in the past 5 years DAR has been profitable.
DAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DAR has a Return On Assets (1.03%) which is comparable to the rest of the industry.
The Return On Equity of DAR (2.30%) is comparable to the rest of the industry.
DAR has a Return On Invested Capital (3.13%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DAR is significantly below the industry average of 28.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 2.3% | ||
| ROIC | 3.13% |
ROA(3y)5.55%
ROA(5y)6.51%
ROE(3y)13.27%
ROE(5y)13.98%
ROIC(3y)4.65%
ROIC(5y)4.87%
1.3 Margins
The Profit Margin of DAR (1.84%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DAR has declined.
With a decent Operating Margin value of 6.40%, DAR is doing good in the industry, outperforming 65.12% of the companies in the same industry.
DAR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 23.58%, DAR is in line with its industry, outperforming 55.81% of the companies in the same industry.
DAR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.4% | ||
| PM (TTM) | 1.84% | ||
| GM | 23.58% |
OM growth 3Y-24.06%
OM growth 5Y13.04%
PM growth 3Y-29.16%
PM growth 5Y-12.09%
GM growth 3Y-5.14%
GM growth 5Y-0.53%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAR is destroying value.
DAR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for DAR has been reduced compared to 5 years ago.
Compared to 1 year ago, DAR has a worse debt to assets ratio.
2.2 Solvency
DAR has an Altman-Z score of 1.86. This is not the best score and indicates that DAR is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of DAR (1.86) is comparable to the rest of the industry.
DAR has a debt to FCF ratio of 8.62. This is a slightly negative value and a sign of low solvency as DAR would need 8.62 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.62, DAR is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that DAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, DAR is doing worse than 65.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.43
WACC7.3%
2.3 Liquidity
A Current Ratio of 1.49 indicates that DAR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.49, DAR perfoms like the industry average, outperforming 41.86% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that DAR may have some problems paying its short term obligations.
DAR has a Quick ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for DAR have decreased strongly by -57.41% in the last year.
Measured over the past years, DAR shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.44% on average per year.
The Revenue has decreased by -1.15% in the past year.
The Revenue has been growing by 11.18% on average over the past years. This is quite good.
EPS 1Y (TTM)-57.41%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%9.09%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%9.99%
3.2 Future
The Earnings Per Share is expected to grow by 26.96% on average over the next years. This is a very strong growth
DAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.15% yearly.
EPS Next Y-75.81%
EPS Next 2Y22.49%
EPS Next 3Y26.14%
EPS Next 5Y26.96%
Revenue Next Year3.53%
Revenue Next 2Y4.1%
Revenue Next 3Y3.64%
Revenue Next 5Y3.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 50.68 indicates a quite expensive valuation of DAR.
DAR's Price/Earnings is on the same level as the industry average.
DAR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.59.
Based on the Price/Forward Earnings ratio of 13.47, the valuation of DAR can be described as correct.
DAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DAR is cheaper than 74.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, DAR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.68 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DAR.
Based on the Price/Free Cash Flow ratio, DAR is valued cheaply inside the industry as 83.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.62 | ||
| EV/EBITDA | 11.04 |
4.3 Compensation for Growth
DAR's earnings are expected to grow with 26.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.49%
EPS Next 3Y26.14%
5. Dividend
5.1 Amount
DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.97
-0.46 (-1.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners112.68%
Inst Owner Change1.79%
Ins Owners0.83%
Ins Owner Change-3.11%
Market Cap5.53B
Revenue(TTM)5.84B
Net Income(TTM)107.77M
Analysts84.21
Price Target49.4 (41.26%)
Short Float %7.95%
Short Ratio5.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-51.8%
Min EPS beat(2)-65.86%
Max EPS beat(2)-37.74%
EPS beat(4)1
Avg EPS beat(4)-54.59%
Min EPS beat(4)-149.54%
Max EPS beat(4)34.77%
EPS beat(8)3
Avg EPS beat(8)-38.39%
EPS beat(12)4
Avg EPS beat(12)-27.92%
EPS beat(16)6
Avg EPS beat(16)-21.82%
Revenue beat(2)1
Avg Revenue beat(2)1%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)2.96%
Revenue beat(4)1
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)2.96%
Revenue beat(8)1
Avg Revenue beat(8)-2.94%
Revenue beat(12)3
Avg Revenue beat(12)-2.04%
Revenue beat(16)7
Avg Revenue beat(16)0.5%
PT rev (1m)2.25%
PT rev (3m)2.18%
EPS NQ rev (1m)-4.13%
EPS NQ rev (3m)-41.89%
EPS NY rev (1m)-2.17%
EPS NY rev (3m)-46.22%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.68 | ||
| Fwd PE | 13.47 | ||
| P/S | 0.95 | ||
| P/FCF | 11.62 | ||
| P/OCF | 7.15 | ||
| P/B | 1.18 | ||
| P/tB | 4.23 | ||
| EV/EBITDA | 11.04 |
EPS(TTM)0.69
EY1.97%
EPS(NY)2.6
Fwd EY7.42%
FCF(TTM)3.01
FCFY8.61%
OCF(TTM)4.89
OCFY13.98%
SpS36.94
BVpS29.64
TBVpS8.27
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 2.3% | ||
| ROCE | 3.96% | ||
| ROIC | 3.13% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 4.95% | ||
| OM | 6.4% | ||
| PM (TTM) | 1.84% | ||
| GM | 23.58% | ||
| FCFM | 8.15% |
ROA(3y)5.55%
ROA(5y)6.51%
ROE(3y)13.27%
ROE(5y)13.98%
ROIC(3y)4.65%
ROIC(5y)4.87%
ROICexc(3y)4.72%
ROICexc(5y)4.94%
ROICexgc(3y)7.33%
ROICexgc(5y)7.49%
ROCE(3y)5.89%
ROCE(5y)6.16%
ROICexgc growth 3Y-30.18%
ROICexgc growth 5Y9.18%
ROICexc growth 3Y-32.08%
ROICexc growth 5Y9.94%
OM growth 3Y-24.06%
OM growth 5Y13.04%
PM growth 3Y-29.16%
PM growth 5Y-12.09%
GM growth 3Y-5.14%
GM growth 5Y-0.53%
F-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.62 | ||
| Debt/EBITDA | 4.62 | ||
| Cap/Depr | 59.82% | ||
| Cap/Sales | 5.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.78% | ||
| Profit Quality | 441.79% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.86 |
F-Score7
WACC7.3%
ROIC/WACC0.43
Cap/Depr(3y)91.92%
Cap/Depr(5y)88.7%
Cap/Sales(3y)6.66%
Cap/Sales(5y)6.74%
Profit Quality(3y)97.36%
Profit Quality(5y)94.6%
High Growth Momentum
Growth
EPS 1Y (TTM)-57.41%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%9.09%
EPS Next Y-75.81%
EPS Next 2Y22.49%
EPS Next 3Y26.14%
EPS Next 5Y26.96%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%9.99%
Revenue Next Year3.53%
Revenue Next 2Y4.1%
Revenue Next 3Y3.64%
Revenue Next 5Y3.15%
EBIT growth 1Y7%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year105.34%
EBIT Next 3Y44.67%
EBIT Next 5Y33.72%
FCF growth 1Y38.88%
FCF growth 3Y5.61%
FCF growth 5YN/A
OCF growth 1Y-9.8%
OCF growth 3Y6.01%
OCF growth 5Y18.28%
DARLING INGREDIENTS INC / DAR FAQ
What is the ChartMill fundamental rating of DARLING INGREDIENTS INC (DAR) stock?
ChartMill assigns a fundamental rating of 4 / 10 to DAR.
What is the valuation status for DAR stock?
ChartMill assigns a valuation rating of 4 / 10 to DARLING INGREDIENTS INC (DAR). This can be considered as Fairly Valued.
Can you provide the profitability details for DARLING INGREDIENTS INC?
DARLING INGREDIENTS INC (DAR) has a profitability rating of 5 / 10.
What is the valuation of DARLING INGREDIENTS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DARLING INGREDIENTS INC (DAR) is 50.68 and the Price/Book (PB) ratio is 1.18.
Can you provide the financial health for DAR stock?
The financial health rating of DARLING INGREDIENTS INC (DAR) is 4 / 10.