DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAR - US2372661015 - Common Stock
34.72 USD
+0.35 (+1.02%)
34.72 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to DAR. DAR was compared to 87 industry peers in the Food Products industry. DAR has only an average score on both its financial health and profitability. DAR has a decent growth rate and is not valued too expensively.
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.
DAR had positive earnings in each of the past 5 years.
In the past 5 years DAR always reported a positive cash flow from operatings.
1.2 Ratios
DAR has a Return On Assets (1.03%) which is in line with its industry peers.
DAR's Return On Equity of 2.30% is in line compared to the rest of the industry. DAR outperforms 47.13% of its industry peers.
DAR has a Return On Invested Capital (3.13%) which is comparable to the rest of the industry.
DAR had an Average Return On Invested Capital over the past 3 years of 4.65%. This is significantly below the industry average of 28.50%.
| 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
With a Profit Margin value of 1.84%, DAR perfoms like the industry average, outperforming 56.32% of the companies in the same 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 66.67% of the companies in the same industry.
DAR's Operating Margin has improved in the last couple of years.
DAR has a Gross Margin (23.58%) which 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DAR 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.
The debt/assets ratio for DAR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.84 indicates that DAR is not a great score, but indicates only limited risk for bankruptcy at the moment.
DAR's Altman-Z score of 1.84 is in line compared to the rest of the industry. DAR outperforms 44.83% of its industry peers.
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.
The Debt to FCF ratio of DAR (8.62) is better than 65.52% of its industry peers.
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 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.43
WACC7.23%
2.3 Liquidity
A Current Ratio of 1.49 indicates that DAR should not have too much problems paying its short term obligations.
DAR has a Current ratio (1.49) which is comparable to the rest of the industry.
DAR has a Quick Ratio of 1.49. This is a bad value and indicates that DAR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.87, DAR is in line with its industry, outperforming 47.13% of the companies in the same 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.
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 decrease in Revenue. In the last year, the revenue decreased by -1.15%.
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
Based on estimates for the next years, DAR will show a small growth in Revenue. The Revenue will grow by 3.15% on average per year.
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
The Price/Earnings ratio is 50.32, which means the current valuation is very expensive for DAR.
DAR's Price/Earnings is on the same level as the industry average.
DAR is valuated expensively when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.38, DAR is valued correctly.
DAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DAR is cheaper than 72.41% of the companies in the same industry.
DAR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.32 | ||
| Fwd PE | 13.38 |
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.
83.91% of the companies in the same industry are more expensive than DAR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.54 | ||
| EV/EBITDA | 10.91 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DAR's earnings are expected to grow with 26.14% in the coming years.
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 | 0% |
34.72
+0.35 (+1.02%)
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 Cap5.49B
Revenue(TTM)5.84B
Net Income(TTM)107.77M
Analysts84.21
Price Target49.4 (42.28%)
Short Float %6.96%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2.51%
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 | 50.32 | ||
| Fwd PE | 13.38 | ||
| P/S | 0.94 | ||
| P/FCF | 11.54 | ||
| P/OCF | 7.1 | ||
| P/B | 1.17 | ||
| P/tB | 4.2 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)0.69
EY1.99%
EPS(NY)2.6
Fwd EY7.48%
FCF(TTM)3.01
FCFY8.67%
OCF(TTM)4.89
OCFY14.08%
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 | 1.84 |
F-Score7
WACC7.23%
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 50.32 and the Price/Book (PB) ratio is 1.17.
Can you provide the financial health for DAR stock?
The financial health rating of DARLING INGREDIENTS INC (DAR) is 4 / 10.