DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
NYSE:DAR - New York Stock Exchange, Inc. - US2372661015 - Common Stock - Currency: USD
Overall DAR gets a fundamental rating of 4 out of 10. We evaluated DAR against 89 industry peers in the Food Products industry. DAR has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
DAR had a positive operating cash flow in the past year.
Each year in the past 5 years DAR has been profitable.
DAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DAR has a Return On Assets of 1.71%. This is comparable to the rest of the industry: DAR outperforms 43.82% of its industry peers.
With a Return On Equity value of 3.86%, DAR perfoms like the industry average, outperforming 44.94% of the companies in the same industry.
DAR has a Return On Invested Capital of 2.73%. This is comparable to the rest of the industry: DAR outperforms 49.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DAR is below the industry average of 7.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 3.86% | ||
| ROIC | 2.73% |
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
DAR has a Profit Margin of 3.02%. This is comparable to the rest of the industry: DAR outperforms 59.55% of its industry peers.
In the last couple of years the Profit Margin of DAR has declined.
Looking at the Operating Margin, with a value of 5.48%, DAR is in the better half of the industry, outperforming 60.67% of the companies in the same industry.
DAR's Operating Margin has improved in the last couple of years.
DAR's Gross Margin of 22.65% is in line compared to the rest of the industry. DAR outperforms 52.81% of its industry peers.
DAR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.48% | ||
| PM (TTM) | 3.02% | ||
| GM | 22.65% |
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.
The number of shares outstanding for DAR has been reduced compared to 1 year ago.
DAR has less shares outstanding than it did 5 years ago.
DAR has a worse debt/assets ratio than last year.
2.2 Solvency
DAR has an Altman-Z score of 1.79. This is a bad value and indicates that DAR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.79, DAR is in line with its industry, outperforming 47.19% of the companies in the same industry.
The Debt to FCF ratio of DAR is 7.50, which is on the high side as it means it would take DAR, 7.50 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.50, DAR is in the better half of the industry, outperforming 67.42% 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.
The Debt to Equity ratio of DAR (0.86) is worse than 68.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 1.79 |
ROIC/WACC0.29
WACC9.35%
2.3 Liquidity
DAR has a Current Ratio of 1.40. 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 1.40 is in line compared to the rest of the industry. DAR outperforms 46.07% of its industry peers.
DAR has a Quick Ratio of 1.40. This is a bad value and indicates that DAR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.83, DAR perfoms like the industry average, outperforming 48.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The earnings per share for DAR have decreased strongly by -67.58% in the last year.
The Earnings Per Share has been decreasing by -1.44% on average over the past years.
Looking at the last year, DAR shows a very negative growth in Revenue. The Revenue has decreased by -11.56% in the last year.
Measured over the past years, DAR shows a quite strong growth in Revenue. The Revenue has been growing by 11.18% on average per year.
EPS 1Y (TTM)-67.58%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%-132%
Revenue 1Y (TTM)-11.56%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%-2.8%
3.2 Future
The Earnings Per Share is expected to grow by 27.63% 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 2.48% on average per year.
EPS Next Y-10.23%
EPS Next 2Y37.1%
EPS Next 3Y32.87%
EPS Next 5Y27.63%
Revenue Next Year2.43%
Revenue Next 2Y2.71%
Revenue Next 3Y2.48%
Revenue Next 5YN/A
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
The Price/Earnings ratio is 28.43, which means the current valuation is very expensive for DAR.
The rest of the industry has a similar Price/Earnings ratio as DAR.
DAR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 9.35, the valuation of DAR can be described as reasonable.
92.13% of the companies in the same industry are more expensive than DAR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.06, DAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 9.35 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DAR.
Based on the Price/Free Cash Flow ratio, DAR is valued cheaper than 88.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.21 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DAR's earnings are expected to grow with 32.87% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y37.1%
EPS Next 3Y32.87%
5. Dividend
5.1 Amount
No dividends for DAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.42
-0.18 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.86%
Inst Owner Change-1.89%
Ins Owners0.98%
Ins Owner Change8.52%
Market Cap4.81B
Analysts86.32
Price Target51.33 (68.74%)
Short Float %6.19%
Short Ratio4.19
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)-57.38%
Min EPS beat(2)-149.54%
Max EPS beat(2)34.77%
EPS beat(4)2
Avg EPS beat(4)-44.95%
Min EPS beat(4)-149.54%
Max EPS beat(4)34.77%
EPS beat(8)3
Avg EPS beat(8)-26.94%
EPS beat(12)4
Avg EPS beat(12)-21.18%
EPS beat(16)8
Avg EPS beat(16)-12.87%
Revenue beat(2)0
Avg Revenue beat(2)-4.59%
Min Revenue beat(2)-5.89%
Max Revenue beat(2)-3.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.8%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)-0.93%
Revenue beat(8)0
Avg Revenue beat(8)-4.82%
Revenue beat(12)4
Avg Revenue beat(12)-0.46%
Revenue beat(16)7
Avg Revenue beat(16)0.65%
PT rev (1m)-3.24%
PT rev (3m)-8.77%
EPS NQ rev (1m)-16.58%
EPS NQ rev (3m)-35.28%
EPS NY rev (1m)-34.89%
EPS NY rev (3m)-40.76%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 9.35 | ||
| P/S | 0.85 | ||
| P/FCF | 9.21 | ||
| P/OCF | 5.84 | ||
| P/B | 1.08 | ||
| P/tB | 4.14 | ||
| EV/EBITDA | 10.7 |
EPS(TTM)1.07
EY3.52%
EPS(NY)3.25
Fwd EY10.69%
FCF(TTM)3.3
FCFY10.86%
OCF(TTM)5.21
OCFY17.13%
SpS35.88
BVpS28.13
TBVpS7.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.71% | ||
| ROE | 3.86% | ||
| ROCE | 3.46% | ||
| ROIC | 2.73% | ||
| ROICexc | 2.75% | ||
| ROICexgc | 4.36% | ||
| OM | 5.48% | ||
| PM (TTM) | 3.02% | ||
| GM | 22.65% | ||
| FCFM | 9.21% |
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 | 0.86 | ||
| Debt/FCF | 7.5 | ||
| Debt/EBITDA | 4.69 | ||
| Cap/Depr | 60.32% | ||
| Cap/Sales | 5.32% | ||
| Interest Coverage | 1.33 | ||
| Cash Conversion | 101.64% | ||
| Profit Quality | 304.65% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 1.79 |
F-Score5
WACC9.35%
ROIC/WACC0.29
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)-67.58%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%-132%
EPS Next Y-10.23%
EPS Next 2Y37.1%
EPS Next 3Y32.87%
EPS Next 5Y27.63%
Revenue 1Y (TTM)-11.56%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%-2.8%
Revenue Next Year2.43%
Revenue Next 2Y2.71%
Revenue Next 3Y2.48%
Revenue Next 5YN/A
EBIT growth 1Y-33.1%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year141.57%
EBIT Next 3Y48.85%
EBIT Next 5Y33.63%
FCF growth 1Y24.76%
FCF growth 3Y5.61%
FCF growth 5YN/A
OCF growth 1Y-3.02%
OCF growth 3Y6.01%
OCF growth 5Y18.28%