DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA - NYSE:DAR - US2372661015 - Common Stock
34.55 USD
-0.12 (-0.35%)
34.5 USD
-0.05 (-0.14%)
DAR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 86 industry peers in the Food Products industry. DAR has only an average score on both its financial health and profitability. DAR is not valued too expensively and it also shows a decent 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.
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
With a Return On Assets value of 1.03%, DAR perfoms like the industry average, outperforming 42.53% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.28%, DAR is in line with its industry, outperforming 41.38% of the companies in the same industry.
DAR has a Return On Invested Capital (2.77%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for DAR is significantly below the industry average of 28.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 2.28% | ||
| ROIC | 2.77% |
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 (1.85%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of DAR has declined.
The Operating Margin of DAR (5.70%) is better than 62.07% of its industry peers.
In the last couple of years the Operating Margin of DAR has grown nicely.
DAR has a Gross Margin (22.88%) which is comparable to the rest of the industry.
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 | 5.7% | ||
| PM (TTM) | 1.85% | ||
| GM | 22.88% |
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.
Compared to 1 year ago, DAR has less shares outstanding
Compared to 5 years ago, DAR has less shares outstanding
DAR has a worse debt/assets ratio than last year.
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 43.68% of its industry peers.
DAR has a debt to FCF ratio of 7.25. This is a slightly negative value and a sign of low solvency as DAR would need 7.25 years to pay back of all of its debts.
The Debt to FCF ratio of DAR (7.25) is better than 68.97% of its industry peers.
DAR has a Debt/Equity ratio of 0.85. This is a neutral value indicating DAR is somewhat dependend on debt financing.
DAR has a worse Debt to Equity ratio (0.85) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.25 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.4
WACC6.86%
2.3 Liquidity
DAR has a Current Ratio of 1.50. This is a normal value and indicates that DAR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.50, DAR is in line with its industry, outperforming 49.43% of the companies in the same industry.
DAR has a Quick Ratio of 1.50. 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 (0.89) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.89 |
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.
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 29.13% 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 3.58% on average per year.
EPS Next Y-71.15%
EPS Next 2Y25.77%
EPS Next 3Y27.16%
EPS Next 5Y29.13%
Revenue Next Year2.5%
Revenue Next 2Y3.7%
Revenue Next 3Y3.5%
Revenue Next 5Y3.58%
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
Based on the Price/Earnings ratio of 50.07, the valuation of DAR can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as DAR.
When comparing the Price/Earnings ratio of DAR to the average of the S&P500 Index (26.89), we can say DAR is valued expensively.
With a Price/Forward Earnings ratio of 12.63, DAR is valued correctly.
Based on the Price/Forward Earnings ratio, DAR is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.99. DAR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.07 | ||
| Fwd PE | 12.63 |
4.2 Price Multiples
DAR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, DAR is valued cheaper than 83.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.96 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
DAR's earnings are expected to grow with 27.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.77%
EPS Next 3Y27.16%
5. Dividend
5.1 Amount
No dividends for DAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.55
-0.12 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.57%
Inst Owner Change-0.03%
Ins Owners0.99%
Ins Owner Change-3.25%
Market Cap5.47B
Revenue(TTM)5.84B
Net Income(TTM)105.36M
Analysts83.33
Price Target48.98 (41.77%)
Short Float %7.19%
Short Ratio4.36
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)-107.7%
Min EPS beat(2)-149.54%
Max EPS beat(2)-65.86%
EPS beat(4)1
Avg EPS beat(4)-63.33%
Min EPS beat(4)-149.54%
Max EPS beat(4)34.77%
EPS beat(8)3
Avg EPS beat(8)-34.47%
EPS beat(12)4
Avg EPS beat(12)-26.35%
EPS beat(16)7
Avg EPS beat(16)-18.93%
Revenue beat(2)0
Avg Revenue beat(2)-3.43%
Min Revenue beat(2)-5.89%
Max Revenue beat(2)-0.97%
Revenue beat(4)0
Avg Revenue beat(4)-3.81%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)-0.97%
Revenue beat(8)0
Avg Revenue beat(8)-4.33%
Revenue beat(12)3
Avg Revenue beat(12)-1.69%
Revenue beat(16)6
Avg Revenue beat(16)0.15%
PT rev (1m)1.63%
PT rev (3m)-2.5%
EPS NQ rev (1m)-36.34%
EPS NQ rev (3m)-61.08%
EPS NY rev (1m)-34.91%
EPS NY rev (3m)-65.86%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.07 | ||
| Fwd PE | 12.63 | ||
| P/S | 0.96 | ||
| P/FCF | 9.96 | ||
| P/OCF | 6.64 | ||
| P/B | 1.18 | ||
| P/tB | 4.42 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)0.69
EY2%
EPS(NY)2.74
Fwd EY7.92%
FCF(TTM)3.47
FCFY10.04%
OCF(TTM)5.21
OCFY15.07%
SpS36.04
BVpS29.16
TBVpS7.82
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 2.28% | ||
| ROCE | 3.5% | ||
| ROIC | 2.77% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 4.42% | ||
| OM | 5.7% | ||
| PM (TTM) | 1.85% | ||
| GM | 22.88% | ||
| FCFM | 9.63% |
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-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.25 | ||
| Debt/EBITDA | 4.78 | ||
| Cap/Depr | 55.31% | ||
| Cap/Sales | 4.82% | ||
| Interest Coverage | 1.4 | ||
| Cash Conversion | 100.23% | ||
| Profit Quality | 521.03% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.84 |
F-Score5
WACC6.86%
ROIC/WACC0.4
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-71.15%
EPS Next 2Y25.77%
EPS Next 3Y27.16%
EPS Next 5Y29.13%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%9.99%
Revenue Next Year2.5%
Revenue Next 2Y3.7%
Revenue Next 3Y3.5%
Revenue Next 5Y3.58%
EBIT growth 1Y-18.34%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year118.04%
EBIT Next 3Y47.19%
EBIT Next 5Y33.72%
FCF growth 1Y42.86%
FCF growth 3Y5.61%
FCF growth 5YN/A
OCF growth 1Y-4.05%
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 50.07 and the Price/Book (PB) ratio is 1.18.
Can you provide the financial health for DAR stock?
The financial health rating of DARLING INGREDIENTS INC (DAR) is 4 / 10.