DARLING INGREDIENTS INC (DAR)

US2372661015 - Common Stock

42.88  +0.27 (+0.63%)

After market: 42.88 0 (0%)

Fundamental Rating

5

Overall DAR gets a fundamental rating of 5 out of 10. We evaluated DAR against 92 industry peers in the Food Products industry. While DAR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. DAR has a correct valuation and a medium growth rate.



7

1. Profitability

1.1 Basic Checks

In the past year DAR was profitable.
DAR had a positive operating cash flow in the past year.
DAR had positive earnings in each of the past 5 years.
DAR had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

DAR's Return On Assets of 5.86% is fine compared to the rest of the industry. DAR outperforms 68.13% of its industry peers.
DAR has a better Return On Equity (14.06%) than 73.63% of its industry peers.
DAR has a Return On Invested Capital of 5.23%. This is in the better half of the industry: DAR outperforms 60.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for DAR is in line with the industry average of 7.56%.
Industry RankSector Rank
ROA 5.86%
ROE 14.06%
ROIC 5.23%
ROA(3y)8.16%
ROA(5y)7.12%
ROE(3y)17.76%
ROE(5y)15.14%
ROIC(3y)7.15%
ROIC(5y)5.19%

1.3 Margins

DAR has a better Profit Margin (9.54%) than 81.32% of its industry peers.
DAR's Profit Margin has improved in the last couple of years.
DAR has a Operating Margin of 8.85%. This is in the better half of the industry: DAR outperforms 73.63% of its industry peers.
In the last couple of years the Operating Margin of DAR has grown nicely.
The Gross Margin of DAR (24.23%) is better than 61.54% of its industry peers.
DAR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 8.85%
PM (TTM) 9.54%
GM 24.23%
OM growth 3Y25.8%
OM growth 5Y21.47%
PM growth 3Y4.72%
PM growth 5Y26.07%
GM growth 3Y-0.64%
GM growth 5Y2.08%

4

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.
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

An Altman-Z score of 1.99 indicates that DAR is not a great score, but indicates only limited risk for bankruptcy at the moment.
DAR has a Altman-Z score (1.99) which is in line with its industry peers.
The Debt to FCF ratio of DAR is 12.88, which is on the high side as it means it would take DAR, 12.88 years of fcf income to pay off all of its debts.
DAR has a Debt to FCF ratio (12.88) which is in line with its industry peers.
A Debt/Equity ratio of 0.95 indicates that DAR is somewhat dependend on debt financing.
DAR has a worse Debt to Equity ratio (0.95) than 69.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF 12.88
Altman-Z 1.99
ROIC/WACC0.65
WACC8.03%

2.3 Liquidity

A Current Ratio of 1.86 indicates that DAR should not have too much problems paying its short term obligations.
DAR has a Current ratio of 1.86. This is in the better half of the industry: DAR outperforms 62.64% of its industry peers.
DAR has a Quick Ratio of 1.10. This is a normal value and indicates that DAR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.10, DAR is in the better half of the industry, outperforming 67.03% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.86
Quick Ratio 1.1

4

3. Growth

3.1 Past

The earnings per share for DAR have decreased strongly by -12.44% in the last year.
The Earnings Per Share has been growing by 50.52% on average over the past years. This is a very strong growth
Looking at the last year, DAR shows a small growth in Revenue. The Revenue has grown by 3.92% in the last year.
The Revenue has been growing by 14.91% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.44%
EPS 3Y26.21%
EPS 5Y50.52%
EPS growth Q2Q-45.83%
Revenue 1Y (TTM)3.92%
Revenue growth 3Y23.87%
Revenue growth 5Y14.91%
Revenue growth Q2Q-8.71%

3.2 Future

The Earnings Per Share is expected to grow by 13.97% on average over the next years. This is quite good.
Based on estimates for the next years, DAR will show a decrease in Revenue. The Revenue will decrease by -0.39% on average per year.
EPS Next Y-11.55%
EPS Next 2Y6.58%
EPS Next 3Y6.56%
EPS Next 5Y13.97%
Revenue Next Year-9.16%
Revenue Next 2Y-1.83%
Revenue Next 3Y-0.39%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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.

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 10.88 indicates a reasonable valuation of DAR.
DAR's Price/Earnings ratio is rather cheap when compared to the industry. DAR is cheaper than 91.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of DAR to the average of the S&P500 Index (24.95), we can say DAR is valued rather cheaply.
A Price/Forward Earnings ratio of 12.30 indicates a correct valuation of DAR.
85.71% 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 21.40, DAR is valued a bit cheaper.
Industry RankSector Rank
PE 10.88
Fwd PE 12.3

4.2 Price Multiples

DAR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. DAR is cheaper than 74.73% of the companies in the same industry.
67.03% of the companies in the same industry are more expensive than DAR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 19.93
EV/EBITDA 10.08

4.3 Compensation for Growth

DAR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y6.58%
EPS Next 3Y6.56%

0

5. Dividend

5.1 Amount

DAR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

DARLING INGREDIENTS INC

NYSE:DAR (4/22/2024, 4:58:40 PM)

After market: 42.88 0 (0%)

42.88

+0.27 (+0.63%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.85B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.88
Fwd PE 12.3
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.22
Profitability
Industry RankSector Rank
ROA 5.86%
ROE 14.06%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.85%
PM (TTM) 9.54%
GM 24.23%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.86
Quick Ratio 1.1
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.44%
EPS 3Y26.21%
EPS 5Y
EPS growth Q2Q
EPS Next Y-11.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.92%
Revenue growth 3Y23.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y