DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA - NYSE:DAR - US2372661015 - Common Stock
32.53 USD
+0.61 (+1.91%)
32.53 USD
0 (0%)
Overall DAR gets a fundamental rating of 4 out of 10. We evaluated DAR against 86 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 decent growth rate and is not valued too expensively.
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's Return On Assets of 1.03% is in line compared to the rest of the industry. DAR outperforms 43.02% of its industry peers.
Looking at the Return On Equity, with a value of 2.28%, DAR is in line with its industry, outperforming 43.02% of the companies in the same industry.
The Return On Invested Capital of DAR (2.77%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DAR is significantly below the industry average of 28.66%.
| 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
With a Profit Margin value of 1.85%, DAR perfoms like the industry average, outperforming 53.49% of the companies in the same industry.
In the last couple of years the Profit Margin of DAR has declined.
DAR has a better Operating Margin (5.70%) than 60.47% of its industry peers.
In the last couple of years the Operating Margin of DAR has grown nicely.
DAR's Gross Margin of 22.88% is in line compared to the rest of the industry. DAR outperforms 55.81% of its industry peers.
DAR's Gross Margin has been stable in the last couple of years.
| 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
DAR has an Altman-Z score of 1.81. This is a bad value and indicates that DAR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of DAR (1.81) is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 7.25, DAR is doing good in the industry, outperforming 68.60% of the companies in the same industry.
DAR has a Debt/Equity ratio of 0.85. This is a neutral value indicating DAR is somewhat dependend on debt financing.
DAR's Debt to Equity ratio of 0.85 is on the low side compared to the rest of the industry. DAR is outperformed by 66.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.25 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.4
WACC6.93%
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.
DAR's Current ratio of 1.50 is in line compared to the rest of the industry. DAR outperforms 51.16% of its industry peers.
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 of 0.89. This is comparable to the rest of the industry: DAR outperforms 51.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.89 |
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%.
The Earnings Per Share has been decreasing by -1.44% on average over the past years.
Looking at the last year, DAR shows a decrease in Revenue. The Revenue has decreased by -1.15% in the last year.
DAR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.18% yearly.
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
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y-75.28%
EPS Next 2Y22.4%
EPS Next 3Y26.14%
EPS Next 5Y26.96%
Revenue Next Year3.39%
Revenue Next 2Y3.75%
Revenue Next 3Y3.62%
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.
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
A Price/Earnings ratio of 47.14 indicates a quite expensive valuation of DAR.
Compared to the rest of the industry, the Price/Earnings ratio of DAR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.06, DAR is valued quite expensively.
Based on the Price/Forward Earnings ratio of 12.55, the valuation of DAR can be described as correct.
Based on the Price/Forward Earnings ratio, DAR is valued a bit cheaper than 75.58% of the companies in the same industry.
DAR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.14 | ||
| Fwd PE | 12.55 |
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 cheaply inside the industry as 86.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.37 | ||
| EV/EBITDA | 10.99 |
4.3 Compensation for Growth
DAR's earnings are expected to grow with 26.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.4%
EPS Next 3Y26.14%
5. Dividend
5.1 Amount
No dividends for DAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
32.53
+0.61 (+1.91%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.57%
Inst Owner Change-1.14%
Ins Owners0.99%
Ins Owner Change-4.47%
Market Cap5.15B
Revenue(TTM)5.84B
Net Income(TTM)105.36M
Analysts84.21
Price Target48.32 (48.54%)
Short Float %7.48%
Short Ratio4.54
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)-1.36%
PT rev (3m)-1.79%
EPS NQ rev (1m)-35.05%
EPS NQ rev (3m)-38.89%
EPS NY rev (1m)-44.22%
EPS NY rev (3m)-70.74%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.14 | ||
| Fwd PE | 12.55 | ||
| P/S | 0.9 | ||
| P/FCF | 9.37 | ||
| P/OCF | 6.25 | ||
| P/B | 1.12 | ||
| P/tB | 4.16 | ||
| EV/EBITDA | 10.99 |
EPS(TTM)0.69
EY2.12%
EPS(NY)2.59
Fwd EY7.97%
FCF(TTM)3.47
FCFY10.67%
OCF(TTM)5.21
OCFY16.01%
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 | 1.81 |
F-Score5
WACC6.93%
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-75.28%
EPS Next 2Y22.4%
EPS Next 3Y26.14%
EPS Next 5Y26.96%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%9.99%
Revenue Next Year3.39%
Revenue Next 2Y3.75%
Revenue Next 3Y3.62%
Revenue Next 5Y3.15%
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 47.14 and the Price/Book (PB) ratio is 1.12.
Can you provide the financial health for DAR stock?
The financial health rating of DARLING INGREDIENTS INC (DAR) is 3 / 10.