DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
NYSE:DAR - New York Stock Exchange, Inc. - US2372661015 - Common Stock - Currency: USD
Taking everything into account, DAR scores 4 out of 10 in our fundamental rating. DAR was compared to 89 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 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.
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
With a Return On Assets value of 2.77%, DAR perfoms like the industry average, outperforming 47.19% of the companies in the same industry.
DAR's Return On Equity of 6.37% is in line compared to the rest of the industry. DAR outperforms 51.69% of its industry peers.
DAR has a Return On Invested Capital (2.47%) which is in line with its industry peers.
DAR had an Average Return On Invested Capital over the past 3 years of 4.65%. This is below the industry average of 8.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 6.37% | ||
| ROIC | 2.47% |
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 (4.88%) is better than 70.79% of its industry peers.
In the last couple of years the Profit Margin of DAR has declined.
DAR's Operating Margin of 4.93% is in line compared to the rest of the industry. DAR outperforms 57.30% of its industry peers.
In the last couple of years the Operating Margin of DAR has grown nicely.
DAR has a Gross Margin (22.36%) which is in line with its industry peers.
DAR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.93% | ||
| PM (TTM) | 4.88% | ||
| GM | 22.36% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAR is destroying value.
The number of shares outstanding for DAR has been reduced compared to 1 year ago.
The number of shares outstanding for DAR has been reduced compared to 5 years ago.
The debt/assets ratio for DAR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.77, we must say that DAR is in the distress zone and has some risk of bankruptcy.
DAR has a Altman-Z score of 1.77. This is comparable to the rest of the industry: DAR outperforms 47.19% of its industry peers.
The Debt to FCF ratio of DAR is 7.98, which is on the high side as it means it would take DAR, 7.98 years of fcf income to pay off all of its debts.
DAR has a Debt to FCF ratio of 7.98. This is comparable to the rest of the industry: DAR outperforms 59.55% of its industry peers.
DAR has a Debt/Equity ratio of 0.89. This is a neutral value indicating DAR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.89, DAR is not doing good in the industry: 68.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.35
WACC6.95%
2.3 Liquidity
A Current Ratio of 1.38 indicates that DAR should not have too much problems paying its short term obligations.
The Current ratio of DAR (1.38) is comparable to the rest of the industry.
DAR has a Quick Ratio of 1.38. This is a bad value and indicates that DAR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of DAR (0.83) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.38 | ||
| 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%.
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.
Looking at the last year, DAR shows a very negative growth in Revenue. The Revenue has decreased by -15.81% in the last year.
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
Based on estimates for the next years, DAR will show a very strong growth in Earnings Per Share. The EPS will grow by 27.63% on average per year.
DAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.27% yearly.
EPS Next Y37.86%
EPS Next 2Y37.43%
EPS Next 3Y30.31%
EPS Next 5Y27.63%
Revenue Next Year3.11%
Revenue Next 2Y2.78%
Revenue Next 3Y2.27%
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.
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
A Price/Earnings ratio of 17.72 indicates a rather expensive valuation of DAR.
DAR's Price/Earnings ratio is a bit cheaper when compared to the industry. DAR is cheaper than 62.92% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.63. DAR is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.86, the valuation of DAR can be described as correct.
78.65% of the companies in the same industry are more expensive than DAR, based on the Price/Forward Earnings ratio.
DAR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
DAR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAR indicates a rather cheap valuation: DAR is cheaper than 80.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.57 | ||
| EV/EBITDA | 11.14 |
4.3 Compensation for Growth
The 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 30.31% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y37.43%
EPS Next 3Y30.31%
5. Dividend
5.1 Amount
DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.66
+0.39 (+1.29%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.86%
Inst Owner Change-0.14%
Ins Owners0.98%
Ins Owner Change7.95%
Market Cap4.85B
Analysts86.32
Price Target54.45 (77.59%)
Short Float %5.27%
Short Ratio3.74
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)1
Avg EPS beat(2)-18.96%
Min EPS beat(2)-72.7%
Max EPS beat(2)34.77%
EPS beat(4)3
Avg EPS beat(4)-7.35%
Min EPS beat(4)-72.7%
Max EPS beat(4)34.77%
EPS beat(8)4
Avg EPS beat(8)-6.57%
EPS beat(12)5
Avg EPS beat(12)-8.62%
EPS beat(16)9
Avg EPS beat(16)-1%
Revenue beat(2)0
Avg Revenue beat(2)-4.19%
Min Revenue beat(2)-5.08%
Max Revenue beat(2)-3.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.62%
Min Revenue beat(4)-5.19%
Max Revenue beat(4)-0.93%
Revenue beat(8)1
Avg Revenue beat(8)-2.92%
Revenue beat(12)5
Avg Revenue beat(12)0.45%
Revenue beat(16)8
Avg Revenue beat(16)1.04%
PT rev (1m)-3.21%
PT rev (3m)-1.28%
EPS NQ rev (1m)-14.62%
EPS NQ rev (3m)-45.66%
EPS NY rev (1m)-9.02%
EPS NY rev (3m)-20.83%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)-3.55%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 12.86 | ||
| P/S | 0.85 | ||
| P/FCF | 9.57 | ||
| P/OCF | 5.78 | ||
| P/B | 1.11 | ||
| P/tB | 4.19 | ||
| EV/EBITDA | 11.14 |
EPS(TTM)1.73
EY5.64%
EPS(NY)2.39
Fwd EY7.78%
FCF(TTM)3.2
FCFY10.45%
OCF(TTM)5.31
OCFY17.31%
SpS36.14
BVpS27.68
TBVpS7.31
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 6.37% | ||
| ROCE | 3.12% | ||
| ROIC | 2.47% | ||
| ROICexc | 2.49% | ||
| ROICexgc | 3.89% | ||
| OM | 4.93% | ||
| PM (TTM) | 4.88% | ||
| GM | 22.36% | ||
| FCFM | 8.87% |
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%
ROICexcg growth 3Y-30.18%
ROICexcg 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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | 4.97 | ||
| Cap/Depr | 65.99% | ||
| Cap/Sales | 5.82% | ||
| Interest Coverage | 1.16 | ||
| Cash Conversion | 106.82% | ||
| Profit Quality | 181.74% | ||
| Current Ratio | 1.38 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.77 |
F-Score5
WACC6.95%
ROIC/WACC0.35
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)-56.09%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%21.15%
EPS Next Y37.86%
EPS Next 2Y37.43%
EPS Next 3Y30.31%
EPS Next 5Y27.63%
Revenue 1Y (TTM)-15.81%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%-12.17%
Revenue Next Year3.11%
Revenue Next 2Y2.78%
Revenue Next 3Y2.27%
Revenue Next 5YN/A
EBIT growth 1Y-53.05%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year174.46%
EBIT Next 3Y50.37%
EBIT Next 5Y33.63%
FCF growth 1Y47.43%
FCF growth 3Y5.61%
FCF growth 5YN/A
OCF growth 1Y-6.67%
OCF growth 3Y6.01%
OCF growth 5Y18.28%