DARLING INGREDIENTS INC (DAR)
US2372661015 - Common Stock
We assign a fundamental rating of 4 out of 10 to DAR. DAR was compared to 92 industry peers in the Food Products industry. While DAR belongs to the best of the industry regarding profitability, there are concerns on its financial health. DAR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year DAR was profitable.
DAR had a positive operating cash flow in the past year.
Each year in the past 5 years DAR has been profitable.
DAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
DAR's Return On Assets of 4.96% is fine compared to the rest of the industry. DAR outperforms 64.84% of its industry peers.
With a decent Return On Equity value of 11.82%, DAR is doing good in the industry, outperforming 67.03% of the companies in the same industry.
DAR has a Return On Invested Capital of 4.08%. This is comparable to the rest of the industry: DAR outperforms 52.75% 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 8.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 11.82% | ||
| ROIC | 4.08% |
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's Profit Margin of 8.46% is amongst the best of the industry. DAR outperforms 81.32% of its industry peers.
In the last couple of years the Profit Margin of DAR has grown nicely.
DAR has a Operating Margin of 7.24%. This is in the better half of the industry: DAR outperforms 67.03% of its industry peers.
In the last couple of years the Operating Margin of DAR has grown nicely.
Looking at the Gross Margin, with a value of 23.76%, DAR is in the better half of the industry, outperforming 60.44% of the companies in the same industry.
In the last couple of years the Gross Margin of DAR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.24% | ||
| PM (TTM) | 8.46% | ||
| GM | 23.76% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, DAR has a worse debt to assets ratio.
2.2 Solvency
DAR has an Altman-Z score of 1.84. 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 has a Altman-Z score (1.84) which is in line with its industry peers.
The Debt to FCF ratio of DAR is 10.22, which is on the high side as it means it would take DAR, 10.22 years of fcf income to pay off all of its debts.
DAR has a Debt to FCF ratio (10.22) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.95 indicates that DAR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.95, DAR is not doing good in the industry: 64.84% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | 10.22 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.53
WACC7.75%
2.3 Liquidity
DAR has a Current Ratio of 1.67. 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 Current ratio (1.67) which is comparable to the rest of the industry.
DAR has a Quick Ratio of 1.67. 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 (0.96) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
DAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.67%.
The Earnings Per Share has been growing by 50.52% on average over the past years. This is a very strong growth
The Revenue has decreased by -7.76% in the past 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)-26.67%
EPS 3Y26.21%
EPS 5Y50.52%
EPS Q2Q%-56.14%
Revenue 1Y (TTM)-7.76%
Revenue growth 3Y23.87%
Revenue growth 5Y14.91%
Sales Q2Q%-20.71%
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 9.35% on average per year.
The Revenue is expected to decrease by -2.04% on average over the next years.
EPS Next Y-27.35%
EPS Next 2Y0.49%
EPS Next 3Y5.25%
EPS Next 5Y9.35%
Revenue Next Year-13.34%
Revenue Next 2Y-3.98%
Revenue Next 3Y-2.04%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
The Price/Earnings ratio is 11.99, which indicates a very decent valuation of DAR.
84.62% 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 24.29, DAR is valued rather cheaply.
A Price/Forward Earnings ratio of 9.95 indicates a reasonable valuation of DAR.
DAR's Price/Forward Earnings ratio is rather cheap when compared to the industry. DAR is cheaper than 93.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, DAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 9.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAR is valued a bit cheaper than 69.23% of the companies in the same industry.
74.73% 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 | 14.48 | ||
| EV/EBITDA | 10.44 |
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)0.24
EPS Next 2Y0.49%
EPS Next 3Y5.25%
5. Dividend
5.1 Amount
DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
DARLING INGREDIENTS INC
NYSE:DAR (7/25/2024, 7:04:00 PM)
After market: 39.58 0 (0%)39.58
+2.69 (+7.29%)
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 Cap6.32B
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(4)
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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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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 9.95 | ||
| 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)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 11.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.24% | ||
| PM (TTM) | 8.46% | ||
| GM | 23.76% | ||
| 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 Turnover0.59
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 | 1.67 | ||
| Quick Ratio | 0.96 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-26.67%
EPS 3Y26.21%
EPS 5Y
EPS Q2Q%
EPS Next Y-27.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.76%
Revenue growth 3Y23.87%
Revenue growth 5Y
Sales 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