DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
NYSE:DAR - New York Stock Exchange, Inc. - US2372661015 - Common Stock - Currency: USD
Overall DAR gets a fundamental rating of 4 out of 10. We evaluated DAR against 91 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year DAR was profitable.
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's Return On Assets of 1.71% is in line compared to the rest of the industry. DAR outperforms 42.86% of its industry peers.
DAR's Return On Equity of 3.86% is in line compared to the rest of the industry. DAR outperforms 43.96% of its industry peers.
DAR has a Return On Invested Capital (2.73%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DAR is significantly below the industry average of 28.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 3.86% | ||
| ROIC | 2.73% |
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
DAR has a better Profit Margin (3.02%) than 60.44% of its industry peers.
DAR's Profit Margin has declined in the last couple of years.
DAR has a Operating Margin of 5.48%. This is in the better half of the industry: DAR outperforms 60.44% of its industry peers.
In the last couple of years the Operating Margin of DAR has grown nicely.
DAR has a Gross Margin (22.65%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DAR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.48% | ||
| PM (TTM) | 3.02% | ||
| GM | 22.65% |
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
DAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for DAR has been reduced compared to 1 year ago.
DAR has less shares outstanding than it did 5 years ago.
DAR has a worse debt/assets ratio than last year.
2.2 Solvency
DAR has an Altman-Z score of 1.92. 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.
Looking at the Altman-Z score, with a value of 1.92, DAR is in line with its industry, outperforming 46.15% of the companies in the same industry.
DAR has a debt to FCF ratio of 7.50. This is a slightly negative value and a sign of low solvency as DAR would need 7.50 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.50, DAR is doing good in the industry, outperforming 67.03% of the companies in the same industry.
DAR has a Debt/Equity ratio of 0.86. This is a neutral value indicating DAR is somewhat dependend on debt financing.
DAR's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. DAR is outperformed by 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.38
WACC7.14%
2.3 Liquidity
A Current Ratio of 1.40 indicates that DAR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.40, DAR is in line with its industry, outperforming 46.15% of the companies in the same industry.
DAR has a Quick Ratio of 1.40. This is a bad value and indicates that DAR is not financially healthy enough and could expect problems in meeting its short term obligations.
DAR has a Quick ratio of 0.83. This is comparable to the rest of the industry: DAR outperforms 49.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for DAR have decreased strongly by -67.58% in the last year.
DAR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.44% yearly.
DAR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.56%.
The Revenue has been growing by 11.18% on average over the past years. This is quite good.
EPS 1Y (TTM)-67.58%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%-132%
Revenue 1Y (TTM)-11.56%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%-2.8%
3.2 Future
The Earnings Per Share is expected to grow by 32.89% 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 2.46% yearly.
EPS Next Y-11.33%
EPS Next 2Y41.6%
EPS Next 3Y32.87%
EPS Next 5Y32.89%
Revenue Next Year2.32%
Revenue Next 2Y2.75%
Revenue Next 3Y2.46%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.08, the valuation of DAR can be described as expensive.
DAR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, DAR is valued a bit more expensive.
A Price/Forward Earnings ratio of 10.82 indicates a reasonable valuation of DAR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAR indicates a rather cheap valuation: DAR is cheaper than 86.81% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, DAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.08 | ||
| Fwd PE | 10.82 |
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 cheaply inside the industry as 81.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
DAR's earnings are expected to grow with 32.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.6%
EPS Next 3Y32.87%
5. Dividend
5.1 Amount
DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
37.54
-0.74 (-1.93%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners108.17%
Inst Owner Change-0.01%
Ins Owners1.06%
Ins Owner Change4.46%
Market Cap5.94B
Analysts85.56
Price Target49.45 (31.73%)
Short Float %6.27%
Short Ratio3.7
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)1
Avg EPS beat(2)-57.38%
Min EPS beat(2)-149.54%
Max EPS beat(2)34.77%
EPS beat(4)2
Avg EPS beat(4)-44.95%
Min EPS beat(4)-149.54%
Max EPS beat(4)34.77%
EPS beat(8)3
Avg EPS beat(8)-26.94%
EPS beat(12)4
Avg EPS beat(12)-21.18%
EPS beat(16)8
Avg EPS beat(16)-12.87%
Revenue beat(2)0
Avg Revenue beat(2)-4.59%
Min Revenue beat(2)-5.89%
Max Revenue beat(2)-3.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.8%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)-0.93%
Revenue beat(8)0
Avg Revenue beat(8)-4.82%
Revenue beat(12)4
Avg Revenue beat(12)-0.46%
Revenue beat(16)7
Avg Revenue beat(16)0.65%
PT rev (1m)-3.67%
PT rev (3m)-9.19%
EPS NQ rev (1m)-3.09%
EPS NQ rev (3m)-30.86%
EPS NY rev (1m)-1.22%
EPS NY rev (3m)-36.72%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.08 | ||
| Fwd PE | 10.82 | ||
| P/S | 1.05 | ||
| P/FCF | 11.36 | ||
| P/OCF | 7.2 | ||
| P/B | 1.33 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | 12.2 |
EPS(TTM)1.07
EY2.85%
EPS(NY)3.47
Fwd EY9.24%
FCF(TTM)3.3
FCFY8.8%
OCF(TTM)5.21
OCFY13.88%
SpS35.88
BVpS28.13
TBVpS7.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 3.86% | ||
| ROCE | 3.46% | ||
| ROIC | 2.73% | ||
| ROICexc | 2.75% | ||
| ROICexgc | 4.36% | ||
| OM | 5.48% | ||
| PM (TTM) | 3.02% | ||
| GM | 22.65% | ||
| FCFM | 9.21% |
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%
ROICexcg growth 3Y-30.18%
ROICexcg 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-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 7.5 | ||
| Debt/EBITDA | 4.69 | ||
| Cap/Depr | 60.32% | ||
| Cap/Sales | 5.32% | ||
| Interest Coverage | 1.33 | ||
| Cash Conversion | 101.64% | ||
| Profit Quality | 304.65% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.92 |
F-Score5
WACC7.14%
ROIC/WACC0.38
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)-67.58%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%-132%
EPS Next Y-11.33%
EPS Next 2Y41.6%
EPS Next 3Y32.87%
EPS Next 5Y32.89%
Revenue 1Y (TTM)-11.56%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%-2.8%
Revenue Next Year2.32%
Revenue Next 2Y2.75%
Revenue Next 3Y2.46%
Revenue Next 5YN/A
EBIT growth 1Y-33.1%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year141.57%
EBIT Next 3Y48.85%
EBIT Next 5Y33.63%
FCF growth 1Y24.76%
FCF growth 3Y5.61%
FCF growth 5YN/A
OCF growth 1Y-3.02%
OCF growth 3Y6.01%
OCF growth 5Y18.28%