We assign a fundamental rating of 4 out of 10 to DAR. DAR was compared to 87 industry peers in the Food Products industry. DAR has only an average score on both its financial health and profitability. DAR is valied quite expensively at the moment, while it does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

DAR has a Return On Assets (1.03%) which is in line with its industry peers.
DAR has a Return On Equity of 2.30%. This is comparable to the rest of the industry: DAR outperforms 47.13% of its industry peers.
DAR has a Return On Invested Capital of 3.13%. This is comparable to the rest of the industry: DAR outperforms 50.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DAR 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

The Profit Margin of DAR (1.84%) is comparable to the rest of the industry.
DAR's Profit Margin has declined in the last couple of years.
DAR's Operating Margin of 6.40% is fine compared to the rest of the industry. DAR outperforms 65.52% of its industry peers.
DAR's Operating Margin has improved in the last couple of years.
DAR has a Gross Margin (23.58%) 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	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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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
DAR has a worse debt/assets ratio than last year.

2.2 Solvency

DAR has an Altman-Z score of 1.97. 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.
DAR has a Altman-Z score of 1.97. This is comparable to the rest of the industry: DAR outperforms 44.83% of its industry peers.
The Debt to FCF ratio of DAR is 8.62, which is on the high side as it means it would take DAR, 8.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DAR (8.62) is better than 63.22% of its industry peers.
DAR has a Debt/Equity ratio of 0.86. This is a neutral value indicating DAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.86, DAR is doing worse than 64.37% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.86
Debt/FCF	8.62
Altman-Z	1.97

ROIC/WACC0.43

WACC7.22%

2.3 Liquidity

DAR has a Current Ratio of 1.49. This is a normal value and indicates that DAR is financially healthy and should not expect problems in meeting 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.
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

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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%.
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 decrease in Revenue. The Revenue has decreased by -1.15% 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)-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.
The Revenue is expected to grow by 3.15% on average over the next years.

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

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 61.45 indicates a quite expensive valuation of DAR.
The rest of the industry has a similar Price/Earnings ratio as DAR.
DAR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
With a Price/Forward Earnings ratio of 17.64, DAR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAR indicates a somewhat cheap valuation: DAR is cheaper than 65.52% of the companies listed in the same industry.
DAR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	61.45
Fwd PE	17.64

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, DAR is valued a bit cheaper than 74.71% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	14.09
EV/EBITDA	12.3

4.3 Compensation for Growth

A more expensive valuation may be justified as DAR's earnings are expected to grow with 22.87% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y17.88%

EPS Next 3Y22.87%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

No dividends for DAR!.

		Industry Rank	Sector Rank
Dividend Yield	0%

More info and screens

Find the best dividend stocks

Show peers with best dividend

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.