DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAR - US2372661015 - Common Stock
42.74 USD
+0.42 (+0.99%)
42.9514 USD
+0.21 (+0.49%)
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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- DAR had positive earnings in the past year.
- In the past year DAR had a positive cash flow from operations.
- Each year in the past 5 years DAR has been profitable.
- In the past 5 years DAR always reported a positive cash flow from operatings.
1.2 Ratios
- DAR has a Return On Assets of 1.03%. This is comparable to the rest of the industry: DAR outperforms 45.98% of 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.
- The Return On Invested Capital of DAR (3.13%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years 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
- Looking at the Profit Margin, with a value of 1.84%, DAR is in line with its industry, outperforming 55.17% of the companies in the same industry.
- DAR's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 6.40%, DAR is doing good in the industry, outperforming 65.52% of the companies in the same industry.
- DAR's Operating Margin has improved in the last couple of years.
- DAR has a Gross Margin of 23.58%. This is comparable to the rest of the industry: DAR outperforms 55.17% of 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so DAR is destroying value.
- Compared to 1 year ago, DAR has less shares outstanding
- Compared to 5 years ago, DAR has less shares outstanding
- Compared to 1 year ago, DAR has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.97 indicates that DAR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- DAR's Altman-Z score of 1.97 is in line compared 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.
- DAR has a Debt to FCF ratio of 8.62. This is in the better half of the industry: DAR outperforms 63.22% of its industry peers.
- A Debt/Equity ratio of 0.86 indicates that DAR is somewhat dependend on debt financing.
- DAR has a worse Debt to Equity ratio (0.86) than 64.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.43
WACC7.21%
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.
- DAR has a Quick Ratio of 1.49. 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 (0.87) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- The earnings per share for DAR have decreased strongly by -57.41% in the last year.
- The Earnings Per Share has been decreasing by -1.44% on average over the past years.
- The Revenue has decreased by -1.15% in the past 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
- DAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.15% yearly.
EPS Next Y-76.5%
EPS Next 2Y22.49%
EPS Next 3Y26.23%
EPS Next 5Y26.96%
Revenue Next Year3.67%
Revenue Next 2Y4.11%
Revenue Next 3Y3.42%
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.
- 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
- Based on the Price/Earnings ratio of 61.94, the valuation of DAR can be described as expensive.
- DAR's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, DAR is valued quite expensively.
- With a Price/Forward Earnings ratio of 16.47, DAR is valued correctly.
- 66.67% of the companies in the same industry are more expensive than DAR, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of DAR to the average of the S&P500 Index (24.26), we can say DAR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.94 | ||
| Fwd PE | 16.47 |
4.2 Price Multiples
- DAR's Enterprise Value to EBITDA ratio is in line with the industry average.
- 73.56% of the companies in the same industry are more expensive than DAR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.2 | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
- DAR's earnings are expected to grow with 26.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.49%
EPS Next 3Y26.23%
5. Dividend
5.1 Amount
- No dividends for DAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 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 earnings growth outlook for DARLING INGREDIENTS INC?
The Earnings per Share (EPS) of DARLING INGREDIENTS INC (DAR) is expected to decline by -76.5% in the next year.