DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
NYSE:DAR - New York Stock Exchange, Inc. - US2372661015 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to DAR. DAR was compared to 91 industry peers in the Food Products industry. There are concerns on the financial health of DAR while its profitability can be described as average. DAR has a correct valuation and a medium growth rate.
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.
In the past 5 years DAR has always been profitable.
DAR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.47%, DAR is in line with its industry, outperforming 44.71% of the companies in the same industry.
The Return On Equity of DAR (5.75%) is comparable to the rest of the industry.
DAR's Return On Invested Capital of 2.90% is on the low side compared to the rest of the industry. DAR is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 5.75% | ||
| ROIC | 2.9% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
DAR's Profit Margin of 4.42% is fine compared to the rest of the industry. DAR outperforms 62.35% of its industry peers.
DAR's Profit Margin has declined in the last couple of years.
DAR has a Operating Margin (5.92%) which is in line with its industry peers.
DAR's Operating Margin has improved in the last couple of years.
DAR has a Gross Margin (23.35%) 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 | 5.92% | ||
| PM (TTM) | 4.42% | ||
| GM | 23.35% |
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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
DAR has an Altman-Z score of 1.86. 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.
The Altman-Z score of DAR (1.86) is comparable to the rest of the industry.
The Debt to FCF ratio of DAR is 9.08, which is on the high side as it means it would take DAR, 9.08 years of fcf income to pay off all of its debts.
DAR's Debt to FCF ratio of 9.08 is in line compared to the rest of the industry. DAR outperforms 51.76% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that DAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, DAR is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 9.08 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.37
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.41 indicates that DAR should not have too much problems paying its short term obligations.
The Current ratio of DAR (1.41) is comparable to the rest of the industry.
A Quick Ratio of 0.83 indicates that DAR may have some problems paying its short term obligations.
DAR's Quick ratio of 0.83 is in line compared to the rest of the industry. DAR outperforms 42.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
DAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.09%.
The Earnings Per Share has been decreasing by -1.44% on average over the past years.
DAR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.81%.
The Revenue has been growing by 11.18% on average over the past years. This is quite good.
EPS 1Y (TTM)-56.09%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%21.15%
Revenue 1Y (TTM)-15.81%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%-12.17%
3.2 Future
DAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.18% yearly.
Based on estimates for the next years, DAR will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y60.53%
EPS Next 2Y47.33%
EPS Next 3Y33.8%
EPS Next 5Y27.18%
Revenue Next Year3.91%
Revenue Next 2Y3.27%
Revenue Next 3YN/A
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.
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 22.67, which indicates a rather expensive current valuation of DAR.
DAR's Price/Earnings ratio is in line with the industry average.
DAR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 14.12, DAR is valued correctly.
DAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DAR is cheaper than 77.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, DAR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.67 | ||
| Fwd PE | 14.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DAR.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAR indicates a somewhat cheap valuation: DAR is cheaper than 69.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.33 | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
DAR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as DAR's earnings are expected to grow with 33.80% in the coming years.
PEG (NY)0.37
PEG (5Y)N/A
EPS Next 2Y47.33%
EPS Next 3Y33.8%
5. Dividend
5.1 Amount
DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
39.22
-0.34 (-0.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.86%
Inst Owner Change5.3%
Ins Owners0.98%
Ins Owner Change3.61%
Market Cap6.24B
Analysts84.21
Price Target56.26 (43.45%)
Short Float %6%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)2.8%
PT rev (3m)2.07%
EPS NQ rev (1m)-28.01%
EPS NQ rev (3m)-28.01%
EPS NY rev (1m)-7.82%
EPS NY rev (3m)-8.04%
Revenue NQ rev (1m)-3.04%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)-1.31%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.67 | ||
| Fwd PE | 14.12 | ||
| P/S | 1.06 | ||
| P/FCF | 13.33 | ||
| P/OCF | 6.92 | ||
| P/B | 1.37 | ||
| P/tB | 5.58 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)1.73
EY4.41%
EPS(NY)2.78
Fwd EY7.08%
FCF(TTM)2.94
FCFY7.5%
OCF(TTM)5.67
OCFY14.46%
SpS37.17
BVpS28.62
TBVpS7.03
PEG (NY)0.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.47% | ||
| ROE | 5.75% | ||
| ROCE | 3.68% | ||
| ROIC | 2.9% | ||
| ROICexc | 2.94% | ||
| ROICexgc | 4.63% | ||
| OM | 5.92% | ||
| PM (TTM) | 4.42% | ||
| GM | 23.35% | ||
| FCFM | 7.91% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector 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 | 1.86 |
F-Score6
WACC7.83%
ROIC/WACC0.37
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-56.09%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%21.15%
EPS Next Y60.53%
EPS Next 2Y47.33%
EPS Next 3Y33.8%
EPS Next 5Y27.18%
Revenue 1Y (TTM)-15.81%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%-12.17%
Revenue Next Year3.91%
Revenue Next 2Y3.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-40.15%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year197.98%
EBIT Next 3Y57.83%
EBIT Next 5Y32.75%
FCF growth 1Y36.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.16%
OCF growth 3YN/A
OCF growth 5YN/A