DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
NYSE:DAR - New York Stock Exchange, Inc. - US2372661015 - Common Stock - Currency: USD
DAR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. DAR has an average financial health and profitability rating. DAR has a correct valuation and a medium 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
DAR has a Return On Assets of 1.71%. This is comparable to the rest of the industry: DAR outperforms 46.15% of its industry peers.
Looking at the Return On Equity, with a value of 3.86%, DAR is in line with its industry, outperforming 47.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.73%, DAR is in line with its industry, outperforming 42.86% of the companies in the same industry.
DAR had an Average Return On Invested Capital over the past 3 years of 4.65%. This is below the industry average of 8.90%.
| 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's Profit Margin of 3.02% is in line compared to the rest of the industry. DAR outperforms 57.14% of its industry peers.
DAR's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 5.48%, DAR is doing good in the industry, outperforming 60.44% of the companies in the same industry.
In the last couple of years the Operating Margin of DAR has grown nicely.
DAR has a Gross Margin (22.65%) which is in line with its industry peers.
In the last couple of years the Gross Margin of DAR has remained more or less at the same level.
| 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.
DAR has less shares outstanding than it did 1 year ago.
DAR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for DAR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.85 indicates that DAR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of DAR (1.85) is comparable to the rest of the industry.
DAR has a debt to FCF ratio of 7.50. This is a slightly negative value and a sign of low solvency as DAR would need 7.50 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.50, DAR is doing good in the industry, outperforming 60.44% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that DAR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.86, DAR is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 7.5 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.39
WACC7.04%
2.3 Liquidity
A Current Ratio of 1.40 indicates that DAR should not have too much problems paying its short term obligations.
DAR has a Current ratio of 1.40. This is comparable to the rest of the industry: DAR outperforms 47.25% of its industry peers.
A Quick Ratio of 0.83 indicates that DAR may have some problems paying its short term obligations.
DAR has a Quick ratio (0.83) which is comparable to the rest of the 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.
DAR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.44% yearly.
DAR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.56%.
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
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.
Based on estimates for the next years, DAR will show a small growth in Revenue. The Revenue will grow by 2.23% on average per year.
EPS Next Y37.86%
EPS Next 2Y37.43%
EPS Next 3Y30.31%
EPS Next 5Y27.63%
Revenue Next Year2.34%
Revenue Next 2Y2.7%
Revenue Next 3Y2.23%
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.
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 31.80 indicates a quite expensive valuation of DAR.
The rest of the industry has a similar Price/Earnings ratio as DAR.
Compared to an average S&P500 Price/Earnings ratio of 24.21, DAR is valued a bit more expensive.
A Price/Forward Earnings ratio of 10.41 indicates a reasonable valuation of DAR.
DAR's Price/Forward Earnings ratio is rather cheap when compared to the industry. DAR is cheaper than 86.81% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DAR to the average of the S&P500 Index (20.44), we can say DAR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.8 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
DAR's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, DAR is valued a bit cheaper than the industry average as 79.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.3 | ||
| EV/EBITDA | 11.37 |
4.3 Compensation for Growth
DAR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
DAR's earnings are expected to grow with 30.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
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 |
34.03
+0.18 (+0.53%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.86%
Inst Owner Change-0.97%
Ins Owners0.98%
Ins Owner Change8.98%
Market Cap5.38B
Analysts86.32
Price Target51.33 (50.84%)
Short Float %6.05%
Short Ratio3.96
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)-54.81%
Min EPS beat(2)-144.4%
Max EPS beat(2)34.77%
EPS beat(4)2
Avg EPS beat(4)-43.67%
Min EPS beat(4)-144.4%
Max EPS beat(4)34.77%
EPS beat(8)3
Avg EPS beat(8)-26.3%
EPS beat(12)4
Avg EPS beat(12)-20.75%
EPS beat(16)8
Avg EPS beat(16)-12.55%
Revenue beat(2)0
Avg Revenue beat(2)-4.56%
Min Revenue beat(2)-5.83%
Max Revenue beat(2)-3.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-5.83%
Max Revenue beat(4)-0.93%
Revenue beat(8)0
Avg Revenue beat(8)-4.81%
Revenue beat(12)4
Avg Revenue beat(12)-0.45%
Revenue beat(16)7
Avg Revenue beat(16)0.65%
PT rev (1m)-5.74%
PT rev (3m)-9.48%
EPS NQ rev (1m)-19.52%
EPS NQ rev (3m)-38.81%
EPS NY rev (1m)-1.61%
EPS NY rev (3m)-20.31%
Revenue NQ rev (1m)0.47%
Revenue NQ rev (3m)1.62%
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.8 | ||
| Fwd PE | 10.41 | ||
| P/S | 0.95 | ||
| P/FCF | 10.3 | ||
| P/OCF | 6.53 | ||
| P/B | 1.21 | ||
| P/tB | 4.63 | ||
| EV/EBITDA | 11.37 |
EPS(TTM)1.07
EY3.14%
EPS(NY)3.27
Fwd EY9.6%
FCF(TTM)3.3
FCFY9.71%
OCF(TTM)5.21
OCFY15.32%
SpS35.89
BVpS28.13
TBVpS7.34
PEG (NY)0.84
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 | 1.85 |
F-Score5
WACC7.04%
ROIC/WACC0.39
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 Y37.86%
EPS Next 2Y37.43%
EPS Next 3Y30.31%
EPS Next 5Y27.63%
Revenue 1Y (TTM)-11.56%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%-2.8%
Revenue Next Year2.34%
Revenue Next 2Y2.7%
Revenue Next 3Y2.23%
Revenue Next 5YN/A
EBIT growth 1Y-33.1%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year174.46%
EBIT Next 3Y50.37%
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%