DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAR - US2372661015 - Common Stock
36 USD
-0.53 (-1.45%)
36 USD
0 (0%)
Overall DAR gets a fundamental rating of 4 out of 10. We evaluated DAR 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.
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 comparable to the rest of the industry.
DAR has a Return On Equity (2.30%) which 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 28.50%.
| 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
DAR has a Profit Margin (1.84%) which is in line with its industry peers.
In the last couple of years the Profit Margin of DAR has declined.
The Operating Margin of DAR (6.40%) is better than 66.67% 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.
Compared to 1 year ago, DAR has less shares outstanding
Compared to 5 years ago, DAR has less shares outstanding
The debt/assets ratio for DAR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.86 indicates that DAR is not a great score, but indicates only limited risk for bankruptcy at the moment.
DAR has a Altman-Z score (1.86) which is in line with 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.
DAR has a Debt to Equity ratio of 0.86. This is in the lower half of the industry: DAR underperforms 63.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.44
WACC7.1%
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 in line with its industry peers.
A Quick Ratio of 0.87 indicates that DAR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, DAR is in line with its industry, outperforming 45.98% 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.
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.
DAR shows a decrease in Revenue. In the last year, the revenue decreased by -1.15%.
DAR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.18% yearly.
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
Based on estimates for the next years, DAR will show a very strong growth in Earnings Per Share. The EPS will grow by 26.96% on average per year.
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-76.5%
EPS Next 2Y22.49%
EPS Next 3Y26.23%
EPS Next 5Y26.96%
Revenue Next Year3.61%
Revenue Next 2Y4.13%
Revenue Next 3Y3.28%
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 52.17, which means the current valuation is very expensive for DAR.
Compared to the rest of the industry, the Price/Earnings ratio of DAR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.51. DAR is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 13.87, which indicates a correct valuation of DAR.
DAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DAR is cheaper than 71.26% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, DAR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.17 | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DAR.
DAR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DAR is cheaper than 81.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.96 | ||
| EV/EBITDA | 11.14 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DAR's earnings are expected to grow with 26.23% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.49%
EPS Next 3Y26.23%
5. Dividend
5.1 Amount
DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
36
-0.53 (-1.45%)
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 Cap5.69B
Revenue(TTM)5.84B
Net Income(TTM)107.77M
Analysts84.21
Price Target49.41 (37.25%)
Short Float %6.42%
Short Ratio4.55
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)1.55%
PT rev (3m)2.52%
EPS NQ rev (1m)-4.75%
EPS NQ rev (3m)-42.27%
EPS NY rev (1m)-4.96%
EPS NY rev (3m)-46.99%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.17 | ||
| Fwd PE | 13.87 | ||
| P/S | 0.97 | ||
| P/FCF | 11.96 | ||
| P/OCF | 7.36 | ||
| P/B | 1.21 | ||
| P/tB | 4.35 | ||
| EV/EBITDA | 11.14 |
EPS(TTM)0.69
EY1.92%
EPS(NY)2.6
Fwd EY7.21%
FCF(TTM)3.01
FCFY8.36%
OCF(TTM)4.89
OCFY13.58%
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
WACC7.1%
ROIC/WACC0.44
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-76.5%
EPS Next 2Y22.49%
EPS Next 3Y26.23%
EPS Next 5Y26.96%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%9.99%
Revenue Next Year3.61%
Revenue Next 2Y4.13%
Revenue Next 3Y3.28%
Revenue Next 5Y3.15%
EBIT growth 1Y7%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year104.3%
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.
Can you provide the valuation status for DARLING INGREDIENTS INC?
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 earnings growth outlook for DARLING INGREDIENTS INC?
The Earnings per Share (EPS) of DARLING INGREDIENTS INC (DAR) is expected to decline by -76.5% in the next year.