DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:DAR • US2372661015
46.665 USD
+1.01 (+2.2%)
Last: Feb 2, 2026, 10:21 AM
Taking everything into account, DAR scores 4 out of 10 in our fundamental rating. DAR was compared to 87 industry peers in the Food Products industry. Both the profitability and the financial health of DAR get a neutral evaluation. Nothing too spectacular is happening here. DAR is quite expensive at the moment. It does show a decent growth rate.
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.
- Each year in the past 5 years DAR had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.03%, DAR is in line with its industry, outperforming 45.98% of the companies in the same industry.
- With a Return On Equity value of 2.30%, DAR perfoms like the industry average, outperforming 47.13% of the companies in the same industry.
- DAR's Return On Invested Capital of 3.13% is in line compared to the rest of the industry. DAR outperforms 50.57% of its industry peers.
- DAR had an Average Return On Invested Capital over the past 3 years of 4.65%. This is significantly below the industry average of 27.79%.
| 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 55.17% of the companies in the same industry.
- DAR's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 6.40%, DAR is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
- DAR's Operating Margin has improved in the last couple of years.
- DAR has a Gross Margin of 23.58%. This is comparable to the rest of the industry: DAR outperforms 55.17% of its industry peers.
- 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.
- The number of shares outstanding for DAR has been reduced compared to 1 year ago.
- Compared to 5 years ago, DAR has less shares outstanding
- DAR has a worse debt/assets ratio than last year.
2.2 Solvency
- DAR has an Altman-Z score of 2.02. 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 (2.02) 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.
- With a decent Debt to FCF ratio value of 8.62, DAR is doing good in the industry, outperforming 63.22% of the companies in the same industry.
- DAR has a Debt/Equity ratio of 0.86. This is a neutral value indicating DAR is somewhat dependend on debt financing.
- DAR has a worse Debt to Equity ratio (0.86) than 64.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.43
WACC7.29%
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 43.68% of its industry peers.
- A Quick Ratio of 0.87 indicates that DAR may have some problems paying its short term obligations.
- DAR's Quick ratio of 0.87 is in line compared to the rest of the industry. DAR outperforms 45.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- DAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.41%.
- 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 26.96% on average over the next years. This is a very strong growth
- 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-76.32%
EPS Next 2Y17.88%
EPS Next 3Y22.87%
EPS Next 5Y26.96%
Revenue Next Year3.61%
Revenue Next 2Y4.16%
Revenue Next 3Y3.53%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 67.63, DAR can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of DAR is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of DAR to the average of the S&P500 Index (28.32), we can say DAR is valued expensively.
- With a Price/Forward Earnings ratio of 19.41, DAR is valued on the expensive side.
- DAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. DAR is cheaper than 60.92% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. DAR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.63 | ||
| Fwd PE | 19.41 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as DAR.
- 73.56% 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 | 15.5 | ||
| EV/EBITDA | 12.89 |
4.3 Compensation for Growth
- DAR's earnings are expected to grow with 22.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.88%
EPS Next 3Y22.87%
5. Dividend
5.1 Amount
- DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 3 / 10 to DARLING INGREDIENTS INC (DAR). This can be considered as Overvalued.
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 -76.32% in the next year.