DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
NYSE:DAR - US2372661015 - Common Stock
34.82 USD
+3 (+9.43%)
34.9487 USD
+0.13 (+0.37%)
Overall DAR gets a fundamental rating of 4 out of 10. We evaluated DAR against 89 industry peers in the Food Products industry. There are concerns on the financial health of DAR while its profitability can be described as average. DAR has a decent growth rate and is not valued too expensively.
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.
DAR had positive earnings in each of the past 5 years.
Each year in the past 5 years DAR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.03%, DAR is in line with its industry, outperforming 42.70% of the companies in the same industry.
DAR has a Return On Equity (2.28%) which is in line with its industry peers.
DAR has a Return On Invested Capital of 2.77%. This is comparable to the rest of the industry: DAR outperforms 47.19% of its industry peers.
DAR had an Average Return On Invested Capital over the past 3 years of 4.65%. This is significantly below the industry average of 29.14%.
| 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
DAR has a Profit Margin (1.85%) which is in line with its industry peers.
In the last couple of years the Profit Margin of DAR has declined.
With a Operating Margin value of 5.70%, DAR perfoms like the industry average, outperforming 59.55% of the companies in the same industry.
In the last couple of years the Operating Margin of DAR has grown nicely.
Looking at the Gross Margin, with a value of 22.88%, DAR is in line with its industry, outperforming 53.93% of the companies in the same industry.
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 | 5.7% | ||
| 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.
Compared to 1 year ago, DAR has less shares outstanding
The number of shares outstanding for DAR has been reduced compared to 5 years ago.
Compared to 1 year ago, DAR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that DAR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DAR (1.80) 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.
Looking at the Debt to FCF ratio, with a value of 7.25, DAR is in the better half of the industry, outperforming 69.66% of the companies in the same industry.
DAR has a Debt/Equity ratio of 0.85. This is a neutral value indicating DAR is somewhat dependend on debt financing.
The Debt to Equity ratio of DAR (0.85) is worse than 65.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 7.25 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.39
WACC7.05%
2.3 Liquidity
A Current Ratio of 1.50 indicates that DAR should not have too much problems paying its short term obligations.
The Current ratio of DAR (1.50) is comparable to the rest of the 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
DAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -70.18%.
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.
DAR shows a decrease in Revenue. In the last year, the revenue decreased by -6.76%.
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)-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
The Earnings Per Share is expected to grow by 29.13% 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 3.58% yearly.
EPS Next Y-15.49%
EPS Next 2Y43.34%
EPS Next 3Y33.79%
EPS Next 5Y29.13%
Revenue Next Year3.15%
Revenue Next 2Y3.82%
Revenue Next 3Y3%
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.
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
DAR is valuated quite expensively with a Price/Earnings ratio of 51.21.
DAR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.24. DAR is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 9.80, which indicates a very decent valuation of DAR.
DAR's Price/Forward Earnings ratio is rather cheap when compared to the industry. DAR is cheaper than 93.26% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, DAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.21 | ||
| Fwd PE | 9.8 |
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.
88.76% 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 | 10.03 | ||
| EV/EBITDA | 10.85 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DAR's earnings are expected to grow with 33.79% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y43.34%
EPS Next 3Y33.79%
5. Dividend
5.1 Amount
No dividends for DAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.82
+3 (+9.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners106.92%
Inst Owner Change1.92%
Ins Owners1.06%
Ins Owner Change3.33%
Market Cap5.51B
Analysts83.33
Price Target49.2 (41.3%)
Short Float %4.92%
Short Ratio2.94
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)-0.51%
PT rev (3m)-4.15%
EPS NQ rev (1m)-40.88%
EPS NQ rev (3m)-55.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.86%
Revenue NQ rev (1m)1%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.21 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.97 | ||
| P/FCF | 10.03 | ||
| P/OCF | 6.69 | ||
| P/B | 1.19 | ||
| P/tB | 4.45 | ||
| EV/EBITDA | 10.85 |
EPS(TTM)0.68
EY1.95%
EPS(NY)3.55
Fwd EY10.21%
FCF(TTM)3.47
FCFY9.97%
OCF(TTM)5.21
OCFY14.96%
SpS36.05
BVpS29.17
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 | 1.8 |
F-Score5
WACC7.05%
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)-70.18%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%-79.59%
EPS Next Y-15.49%
EPS Next 2Y43.34%
EPS Next 3Y33.79%
EPS Next 5Y29.13%
Revenue 1Y (TTM)-6.76%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%1.8%
Revenue Next Year3.15%
Revenue Next 2Y3.82%
Revenue Next 3Y3%
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%