DARLING INGREDIENTS INC (DAR)

US2372661015 - Common Stock

34.59  +0.04 (+0.12%)

After market: 34.59 0 (0%)

Fundamental Rating

4

Taking everything into account, DAR scores 4 out of 10 in our fundamental rating. DAR was compared to 89 industry peers in the Food Products industry. While DAR is still in line with the averages on profitability rating, there are concerns on its financial health. DAR has a valuation in line with the averages, but it does not seem to be growing.



6

1. Profitability

1.1 Basic Checks

DAR had positive earnings in the past year.
In the past year DAR had a positive cash flow from operations.
Each year in the past 5 years DAR has been profitable.
Each year in the past 5 years DAR had a positive operating cash flow.

1.2 Ratios

DAR has a Return On Assets (2.47%) which is in line with its industry peers.
DAR's Return On Equity of 5.75% is in line compared to the rest of the industry. DAR outperforms 49.40% of its industry peers.
DAR's Return On Invested Capital of 3.22% is on the low side compared to the rest of the industry. DAR is outperformed by 60.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DAR is in line with the industry average of 8.88%.
Industry RankSector Rank
ROA 2.47%
ROE 5.75%
ROIC 3.22%
ROA(3y)8.16%
ROA(5y)7.12%
ROE(3y)17.76%
ROE(5y)15.14%
ROIC(3y)7.15%
ROIC(5y)5.19%

1.3 Margins

DAR's Profit Margin of 4.42% is in line compared to the rest of the industry. DAR outperforms 59.04% of its industry peers.
DAR's Profit Margin has improved in the last couple of years.
DAR has a better Operating Margin (5.92%) than 60.24% of its industry peers.
DAR's Operating Margin has improved in the last couple of years.
DAR has a Gross Margin of 23.35%. This is comparable to the rest of the industry: DAR outperforms 55.42% of its industry peers.
In the last couple of years the Gross Margin of DAR has grown nicely.
Industry RankSector Rank
OM 5.92%
PM (TTM) 4.42%
GM 23.35%
OM growth 3Y25.8%
OM growth 5Y21.47%
PM growth 3Y4.72%
PM growth 5Y26.07%
GM growth 3Y-0.64%
GM growth 5Y2.08%

3

2. Health

2.1 Basic Checks

DAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, DAR has less shares outstanding
DAR has less shares outstanding than it did 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 1.78. This is a bad value and indicates that DAR is not financially healthy and even has some risk of bankruptcy.
DAR's Altman-Z score of 1.78 is in line compared to the rest of the industry. DAR outperforms 40.96% of its industry peers.
DAR has a debt to FCF ratio of 9.08. This is a negative value and a sign of low solvency as DAR would need 9.08 years to pay back of all of its debts.
The Debt to FCF ratio of DAR (9.08) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.91 indicates that DAR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.91, DAR is not doing good in the industry: 75.90% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 9.08
Altman-Z 1.78
ROIC/WACC0.41
WACC7.84%

2.3 Liquidity

A Current Ratio of 1.41 indicates that DAR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, DAR is in line with its industry, outperforming 46.99% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that DAR may have some problems paying its short term obligations.
DAR has a Quick ratio (0.83) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 0.83

3

3. Growth

3.1 Past

DAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -63.01%.
Measured over the past years, DAR shows a very strong growth in Earnings Per Share. The EPS has been growing by 50.52% on average per year.
Looking at the last year, DAR shows a very negative growth in Revenue. The Revenue has decreased by -14.84% in the last year.
The Revenue has been growing by 14.91% on average over the past years. This is quite good.
EPS 1Y (TTM)-63.01%
EPS 3Y26.21%
EPS 5Y50.52%
EPS Q2Q%-85.71%
Revenue 1Y (TTM)-14.84%
Revenue growth 3Y23.87%
Revenue growth 5Y14.91%
Sales Q2Q%-12.51%

3.2 Future

DAR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.99% yearly.
Based on estimates for the next years, DAR will show a decrease in Revenue. The Revenue will decrease by -3.16% on average per year.
EPS Next Y-55.28%
EPS Next 2Y-12.56%
EPS Next 3Y0.91%
EPS Next 5Y8.99%
Revenue Next Year-15.54%
Revenue Next 2Y-6.06%
Revenue Next 3Y-3.16%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 21.35, DAR is valued on the expensive side.
DAR's Price/Earnings ratio is in line with the industry average.
DAR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.48, the valuation of DAR can be described as very reasonable.
DAR's Price/Forward Earnings ratio is rather cheap when compared to the industry. DAR is cheaper than 83.13% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.67. DAR is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 21.35
Fwd PE 11.48

4.2 Price Multiples

DAR's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, DAR is valued a bit cheaper than 75.90% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.76
EV/EBITDA 11.15

4.3 Compensation for Growth

The decent profitability rating of DAR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-12.56%
EPS Next 3Y0.91%

0

5. Dividend

5.1 Amount

DAR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

DARLING INGREDIENTS INC

NYSE:DAR (1/7/2025, 4:20:02 PM)

After market: 34.59 0 (0%)

34.59

+0.04 (+0.12%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)10-24 2024-10-24/bmo
Earnings (Next)N/A N/A
Inst Owners100.98%
Inst Owner Change0%
Ins Owners0.9%
Ins Owner Change-0.56%
Market Cap5.50B
Analysts84.44
Price Target55.16 (59.47%)
Short Float %6.13%
Short Ratio4.15
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-32.52%
Min EPS beat(2)-72.7%
Max EPS beat(2)7.66%
EPS beat(4)2
Avg EPS beat(4)-22.18%
Min EPS beat(4)-72.7%
Max EPS beat(4)7.66%
EPS beat(8)3
Avg EPS beat(8)-14.58%
EPS beat(12)5
Avg EPS beat(12)-10.9%
EPS beat(16)9
Avg EPS beat(16)-2.68%
Revenue beat(2)0
Avg Revenue beat(2)-3.01%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)-0.93%
Revenue beat(4)0
Avg Revenue beat(4)-4.09%
Min Revenue beat(4)-5.19%
Max Revenue beat(4)-0.93%
Revenue beat(8)2
Avg Revenue beat(8)-2.16%
Revenue beat(12)6
Avg Revenue beat(12)1.27%
Revenue beat(16)9
Avg Revenue beat(16)1.97%
PT rev (1m)0%
PT rev (3m)-7.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-30.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.16%
Valuation
Industry RankSector Rank
PE 21.35
Fwd PE 11.48
P/S 0.93
P/FCF 11.76
P/OCF 6.1
P/B 1.21
P/tB 4.92
EV/EBITDA 11.15
EPS(TTM)1.62
EY4.68%
EPS(NY)3.01
Fwd EY8.71%
FCF(TTM)2.94
FCFY8.5%
OCF(TTM)5.67
OCFY16.39%
SpS37.17
BVpS28.62
TBVpS7.03
PEG (NY)N/A
PEG (5Y)0.42
Profitability
Industry RankSector Rank
ROA 2.47%
ROE 5.75%
ROCE 3.68%
ROIC 3.22%
ROICexc 3.26%
ROICexgc 5.14%
OM 5.92%
PM (TTM) 4.42%
GM 23.35%
FCFM 7.91%
ROA(3y)8.16%
ROA(5y)7.12%
ROE(3y)17.76%
ROE(5y)15.14%
ROIC(3y)7.15%
ROIC(5y)5.19%
ROICexc(3y)7.25%
ROICexc(5y)5.27%
ROICexgc(3y)10.92%
ROICexgc(5y)8%
ROCE(3y)8.16%
ROCE(5y)5.92%
ROICexcg growth 3Y22.83%
ROICexcg growth 5Y14.97%
ROICexc growth 3Y22.74%
ROICexc growth 5Y17.74%
OM growth 3Y25.8%
OM growth 5Y21.47%
PM growth 3Y4.72%
PM growth 5Y26.07%
GM growth 3Y-0.64%
GM growth 5Y2.08%
F-Score6
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0.91
Debt/FCF 9.08
Debt/EBITDA 4.79
Cap/Depr 84.51%
Cap/Sales 7.34%
Interest Coverage 1.39
Cash Conversion 104.47%
Profit Quality 178.9%
Current Ratio 1.41
Quick Ratio 0.83
Altman-Z 1.78
F-Score6
WACC7.84%
ROIC/WACC0.41
Cap/Depr(3y)98.81%
Cap/Depr(5y)97.81%
Cap/Sales(3y)6.65%
Cap/Sales(5y)7.74%
Profit Quality(3y)58.82%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-63.01%
EPS 3Y26.21%
EPS 5Y50.52%
EPS Q2Q%-85.71%
EPS Next Y-55.28%
EPS Next 2Y-12.56%
EPS Next 3Y0.91%
EPS Next 5Y8.99%
Revenue 1Y (TTM)-14.84%
Revenue growth 3Y23.87%
Revenue growth 5Y14.91%
Sales Q2Q%-12.51%
Revenue Next Year-15.54%
Revenue Next 2Y-6.06%
Revenue Next 3Y-3.16%
Revenue Next 5YN/A
EBIT growth 1Y-40.15%
EBIT growth 3Y55.83%
EBIT growth 5Y39.59%
EBIT Next Year2.47%
EBIT Next 3Y14.65%
EBIT Next 5Y13.32%
FCF growth 1Y-15.14%
FCF growth 3Y0.29%
FCF growth 5Y36.41%
OCF growth 1Y1.24%
OCF growth 3Y12.91%
OCF growth 5Y17.67%