DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA - NYSE:DAR - US2372661015 - Common Stock
31.93 USD
-0.52 (-1.6%)
31.93 USD
0 (0%)
Taking everything into account, DAR scores 4 out of 10 in our fundamental rating. DAR was compared to 89 industry peers in the Food Products industry. While DAR is still in line with the averages on profitability rating, there are concerns on its financial health. DAR is not valued too expensively and it also shows a decent 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.
In the past 5 years DAR has always 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 1.03%. This is comparable to the rest of the industry: DAR outperforms 41.57% of its industry peers.
DAR's Return On Equity of 2.28% is in line compared to the rest of the industry. DAR outperforms 40.45% of its industry peers.
DAR's Return On Invested Capital of 2.77% is in line compared to the rest of the industry. DAR outperforms 46.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DAR is significantly below the industry average of 28.31%.
| 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 52.81% of the companies in the same industry.
In the last couple of years the Profit Margin of DAR has declined.
DAR has a Operating Margin (5.70%) which is comparable to the rest of the industry.
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 55.06% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
Based on the Altman-Z score of 1.81, we must say that DAR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DAR (1.81) is comparable to the rest of the industry.
The Debt to FCF ratio of DAR is 7.25, which is on the high side as it means it would take DAR, 7.25 years of fcf income to pay off all of its debts.
DAR has a Debt to FCF ratio of 7.25. This is in the better half of the industry: DAR outperforms 68.54% of its industry peers.
A Debt/Equity ratio of 0.85 indicates that DAR is somewhat dependend on debt financing.
DAR has a Debt to Equity ratio of 0.85. This is in the lower half of the industry: DAR underperforms 64.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.25 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.41
WACC6.83%
2.3 Liquidity
A Current Ratio of 1.50 indicates that DAR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.50, DAR perfoms like the industry average, outperforming 49.44% of the companies in the same industry.
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 (0.89) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
The earnings per share for DAR have decreased strongly by -70.18% in the last year.
Measured over the past years, DAR shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.44% on average per year.
The Revenue has decreased by -6.76% 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)-70.18%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%-79.59%
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%1.8%
3.2 Future
DAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.13% yearly.
DAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.58% yearly.
EPS Next Y-55.02%
EPS Next 2Y28.06%
EPS Next 3Y29.67%
EPS Next 5Y29.13%
Revenue Next Year2.58%
Revenue Next 2Y3.88%
Revenue Next 3Y3.51%
Revenue Next 5Y3.58%
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
Based on the Price/Earnings ratio of 46.96, the valuation of DAR can be described as expensive.
DAR's Price/Earnings ratio is in line with the industry average.
DAR is valuated expensively when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.25, the valuation of DAR can be described as reasonable.
83.15% of the companies in the same industry are more expensive than DAR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.86. DAR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.96 | ||
| Fwd PE | 11.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, DAR is valued cheaply inside the industry as 84.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.2 | ||
| EV/EBITDA | 10.98 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DAR's earnings are expected to grow with 29.67% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.06%
EPS Next 3Y29.67%
5. Dividend
5.1 Amount
DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
31.93
-0.52 (-1.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners106.92%
Inst Owner Change1.94%
Ins Owners1.06%
Ins Owner Change-3.11%
Market Cap5.05B
Analysts83.33
Price Target48.2 (50.96%)
Short Float %5.55%
Short Ratio3.9
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)-2.04%
PT rev (3m)-1.58%
EPS NQ rev (1m)-3.99%
EPS NQ rev (3m)-46.1%
EPS NY rev (1m)-46.78%
EPS NY rev (3m)-49.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.93%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.96 | ||
| Fwd PE | 11.25 | ||
| P/S | 0.89 | ||
| P/FCF | 9.2 | ||
| P/OCF | 6.13 | ||
| P/B | 1.09 | ||
| P/tB | 4.08 | ||
| EV/EBITDA | 10.98 |
EPS(TTM)0.68
EY2.13%
EPS(NY)2.84
Fwd EY8.88%
FCF(TTM)3.47
FCFY10.87%
OCF(TTM)5.21
OCFY16.31%
SpS36.04
BVpS29.16
TBVpS7.82
PEG (NY)N/A
PEG (5Y)N/A
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%
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 Turnover0.55
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
WACC6.83%
ROIC/WACC0.41
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)-70.18%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%-79.59%
EPS Next Y-55.02%
EPS Next 2Y28.06%
EPS Next 3Y29.67%
EPS Next 5Y29.13%
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%1.8%
Revenue Next Year2.58%
Revenue Next 2Y3.88%
Revenue Next 3Y3.51%
Revenue Next 5Y3.58%
EBIT growth 1Y-18.34%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year123.49%
EBIT Next 3Y46.72%
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%