DARLING INGREDIENTS INC (DAR)
US2372661015 - Common Stock
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 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.
DAR had positive earnings in each of the past 5 years.
In the past 5 years DAR always reported a positive cash flow from operatings.
1.2 Ratios
DAR has a better Return On Assets (5.86%) than 68.13% of its industry peers.
DAR's Return On Equity of 14.06% is fine compared to the rest of the industry. DAR outperforms 73.63% of its industry peers.
The Return On Invested Capital of DAR (5.23%) is better than 60.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DAR is in line with the industry average of 7.56%.
| Industry Rank | Sector 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
Looking at the Profit Margin, with a value of 9.54%, DAR belongs to the top of the industry, outperforming 81.32% of the companies in the same industry.
In the last couple of years the Profit Margin of DAR has grown nicely.
With a decent Operating Margin value of 8.85%, DAR is doing good in the industry, outperforming 73.63% 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 of 24.23%. This is in the better half of the industry: DAR outperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of DAR has grown nicely.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 2.00. This is not the best score and indicates that DAR is in the grey zone with still only limited risk for bankruptcy at the moment.
DAR's Altman-Z score of 2.00 is in line compared to the rest of the industry. DAR outperforms 48.35% of its industry peers.
DAR has a debt to FCF ratio of 12.88. This is a negative value and a sign of low solvency as DAR would need 12.88 years to pay back of all of its debts.
DAR's Debt to FCF ratio of 12.88 is in line compared to the rest of the industry. DAR outperforms 56.04% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that DAR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.95, DAR is doing worse than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 12.88 | ||
| Altman-Z | 2 |
ROIC/WACC0.65
WACC8.03%
2.3 Liquidity
DAR has a Current Ratio of 1.86. 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 1.86 is fine compared to the rest 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.
DAR has a Quick ratio of 1.10. This is in the better half of the industry: DAR outperforms 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for DAR have decreased strongly by -12.44% in the last year.
DAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 50.52% yearly.
Looking at the last year, DAR shows a small growth in Revenue. The Revenue has grown by 3.92% in the last year.
Measured over the past years, DAR shows a quite strong growth in Revenue. The Revenue has been growing by 14.91% on average per year.
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
Based on estimates for the next years, DAR will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.97% on average per year.
DAR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.39% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
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 10.95, the valuation of DAR can be described as reasonable.
91.21% of the companies in the same industry are more expensive than DAR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.25, DAR is valued rather cheaply.
A Price/Forward Earnings ratio of 12.38 indicates a correct valuation of DAR.
DAR's Price/Forward Earnings ratio is rather cheap when compared to the industry. DAR is cheaper than 85.71% of the companies in the same industry.
DAR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 12.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of DAR indicates a somewhat cheap valuation: DAR is cheaper than 75.82% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, DAR is valued a bit cheaper than 68.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.05 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
The decent profitability rating of DAR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y6.58%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DARLING INGREDIENTS INC
NYSE:DAR (4/24/2024, 7:04:00 PM)
After market: 43.13 0 (0%)43.13
-0.01 (-0.02%)
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 Cap6.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.95 | ||
| Fwd PE | 12.38 | ||
| 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 Rank | Sector 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 Rank | Sector 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