DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAR - US2372661015 - Common Stock
36.61 USD
+0.01 (+0.03%)
36.61 USD
0 (0%)
DAR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. DAR has an average financial health and profitability rating. 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.
DAR had a positive operating cash flow in the past year.
In the past 5 years DAR has always been profitable.
In the past 5 years DAR always reported a positive cash flow from operatings.
1.2 Ratios
DAR has a Return On Assets of 1.03%. This is comparable to the rest of the industry: DAR outperforms 43.68% of its industry peers.
DAR's Return On Equity of 2.30% is in line compared to the rest of the industry. DAR outperforms 43.68% of its industry peers.
The Return On Invested Capital of DAR (3.13%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for DAR is significantly below the industry average of 28.38%.
| 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.
DAR's Profit Margin has declined in the last couple of years.
DAR's Operating Margin of 6.40% is fine compared to the rest of the industry. DAR outperforms 65.52% of its industry peers.
DAR's Operating Margin has improved in the last couple of years.
The Gross Margin of DAR (23.58%) is comparable to the rest of the 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
DAR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
DAR has less shares outstanding than it did 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
An Altman-Z score of 1.87 indicates that DAR is not a great score, but indicates only limited risk for bankruptcy at the moment.
DAR has a Altman-Z score (1.87) which 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.
DAR's Debt to FCF ratio of 8.62 is fine compared to the rest of the industry. DAR outperforms 65.52% of its industry peers.
DAR has a Debt/Equity ratio of 0.86. This is a neutral value indicating DAR is somewhat dependend on debt financing.
The Debt to Equity ratio of DAR (0.86) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.45
WACC6.92%
2.3 Liquidity
A Current Ratio of 1.49 indicates that DAR should not have too much problems paying its short term obligations.
DAR's Current ratio of 1.49 is in line compared to the rest of the industry. DAR outperforms 47.13% of its industry peers.
A Quick Ratio of 0.87 indicates that DAR may have some problems paying its short term obligations.
DAR has a Quick ratio of 0.87. This is comparable to the rest of the industry: DAR outperforms 51.72% of its industry peers.
| 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.
DAR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.44% yearly.
The Revenue has decreased by -1.15% in the past year.
Measured over the past years, DAR shows a quite strong growth in Revenue. The Revenue has been growing by 11.18% on average per year.
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
DAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.96% yearly.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y-75.28%
EPS Next 2Y22.4%
EPS Next 3Y26.14%
EPS Next 5Y26.96%
Revenue Next Year3.39%
Revenue Next 2Y3.75%
Revenue Next 3Y3.62%
Revenue Next 5Y3.15%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
DAR is valuated quite expensively with a Price/Earnings ratio of 53.06.
DAR's Price/Earnings ratio is in line with the industry average.
DAR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 14.12, the valuation of DAR can be described as correct.
72.41% of the companies in the same industry are more expensive than DAR, based on the Price/Forward Earnings ratio.
DAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.06 | ||
| Fwd PE | 14.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAR is on the same level as its industry peers.
DAR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DAR is cheaper than 80.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.16 | ||
| EV/EBITDA | 11.25 |
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 2Y22.4%
EPS Next 3Y26.14%
5. Dividend
5.1 Amount
DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.61
+0.01 (+0.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.57%
Inst Owner Change1.76%
Ins Owners0.99%
Ins Owner Change-3.11%
Market Cap5.79B
Revenue(TTM)5.84B
Net Income(TTM)107.77M
Analysts84.21
Price Target48.66 (32.91%)
Short Float %7.01%
Short Ratio4.39
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)0.7%
PT rev (3m)0.63%
EPS NQ rev (1m)-2.77%
EPS NQ rev (3m)-39.39%
EPS NY rev (1m)-14.3%
EPS NY rev (3m)-45.03%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.06 | ||
| Fwd PE | 14.12 | ||
| P/S | 0.99 | ||
| P/FCF | 12.16 | ||
| P/OCF | 7.49 | ||
| P/B | 1.24 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 11.25 |
EPS(TTM)0.69
EY1.88%
EPS(NY)2.59
Fwd EY7.08%
FCF(TTM)3.01
FCFY8.22%
OCF(TTM)4.89
OCFY13.36%
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 | 1.87 |
F-Score7
WACC6.92%
ROIC/WACC0.45
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-75.28%
EPS Next 2Y22.4%
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 Year3.39%
Revenue Next 2Y3.75%
Revenue Next 3Y3.62%
Revenue Next 5Y3.15%
EBIT growth 1Y7%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year118.04%
EBIT Next 3Y47.19%
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 53.06 and the Price/Book (PB) ratio is 1.24.
Can you provide the financial health for DAR stock?
The financial health rating of DARLING INGREDIENTS INC (DAR) is 4 / 10.