DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:DAR - US2372661015 - Common Stock
36.19 USD
-0.32 (-0.88%)
36.19 USD
0 (0%)
Taking everything into account, DAR scores 4 out of 10 in our fundamental rating. DAR was compared to 86 industry peers in the Food Products industry. DAR has an average financial health and profitability rating. DAR has a correct valuation and a medium 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.
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 46.51% of its industry peers.
DAR has a Return On Equity (2.30%) which is comparable to the rest of the industry.
The Return On Invested Capital of DAR (3.13%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for DAR is significantly below the industry average of 28.77%.
| 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
DAR has a Profit Margin of 1.84%. This is comparable to the rest of the industry: DAR outperforms 55.81% of its industry peers.
DAR's Profit Margin has declined in the last couple of years.
DAR has a Operating Margin of 6.40%. This is in the better half of the industry: DAR outperforms 65.12% of its industry peers.
DAR's Operating Margin has improved in the last couple of years.
The Gross Margin of DAR (23.58%) is comparable to the rest of the 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 | 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.
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 1.87. 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.
Looking at the Altman-Z score, with a value of 1.87, DAR is in line with its industry, outperforming 46.51% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 8.62, DAR is doing good in the industry, outperforming 65.12% of the companies in the same industry.
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 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 1.87 |
ROIC/WACC0.43
WACC7.28%
2.3 Liquidity
A Current Ratio of 1.49 indicates that DAR should not have too much problems paying its short term obligations.
The Current ratio of DAR (1.49) is comparable to the rest of the industry.
A Quick Ratio of 0.87 indicates that DAR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, DAR is in line with its industry, outperforming 46.51% of the companies in the same industry.
| 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.
DAR shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.44% yearly.
Looking at the last year, DAR shows a decrease in Revenue. The Revenue has decreased by -1.15% in the last year.
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)-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
DAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.96% yearly.
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-75.81%
EPS Next 2Y22.49%
EPS Next 3Y26.14%
EPS Next 5Y26.96%
Revenue Next Year3.53%
Revenue Next 2Y4.1%
Revenue Next 3Y3.64%
Revenue Next 5Y3.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 52.45, which means the current valuation is very expensive for DAR.
The rest of the industry has a similar Price/Earnings ratio as DAR.
When comparing the Price/Earnings ratio of DAR to the average of the S&P500 Index (26.34), we can say DAR is valued expensively.
DAR is valuated correctly with a Price/Forward Earnings ratio of 13.94.
Compared to the rest of the industry, the Price/Forward Earnings ratio of DAR indicates a somewhat cheap valuation: DAR is cheaper than 70.93% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, DAR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.45 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
DAR's Enterprise Value to EBITDA ratio is in line with the industry average.
81.40% 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 | 12.02 | ||
| EV/EBITDA | 11.23 |
4.3 Compensation for Growth
A more expensive valuation may be justified as DAR's earnings are expected to grow with 26.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.49%
EPS Next 3Y26.14%
5. Dividend
5.1 Amount
DAR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
36.19
-0.32 (-0.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners112.68%
Inst Owner Change1.79%
Ins Owners0.83%
Ins Owner Change-3.11%
Market Cap5.72B
Revenue(TTM)5.84B
Net Income(TTM)107.77M
Analysts84.21
Price Target49.4 (36.5%)
Short Float %7.95%
Short Ratio5.13
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)-51.8%
Min EPS beat(2)-65.86%
Max EPS beat(2)-37.74%
EPS beat(4)1
Avg EPS beat(4)-54.59%
Min EPS beat(4)-149.54%
Max EPS beat(4)34.77%
EPS beat(8)3
Avg EPS beat(8)-38.39%
EPS beat(12)4
Avg EPS beat(12)-27.92%
EPS beat(16)6
Avg EPS beat(16)-21.82%
Revenue beat(2)1
Avg Revenue beat(2)1%
Min Revenue beat(2)-0.97%
Max Revenue beat(2)2.96%
Revenue beat(4)1
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-5.89%
Max Revenue beat(4)2.96%
Revenue beat(8)1
Avg Revenue beat(8)-2.94%
Revenue beat(12)3
Avg Revenue beat(12)-2.04%
Revenue beat(16)7
Avg Revenue beat(16)0.5%
PT rev (1m)2.25%
PT rev (3m)2.18%
EPS NQ rev (1m)-4.13%
EPS NQ rev (3m)-41.89%
EPS NY rev (1m)-2.17%
EPS NY rev (3m)-46.22%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.45 | ||
| Fwd PE | 13.94 | ||
| P/S | 0.98 | ||
| P/FCF | 12.02 | ||
| P/OCF | 7.4 | ||
| P/B | 1.22 | ||
| P/tB | 4.38 | ||
| EV/EBITDA | 11.23 |
EPS(TTM)0.69
EY1.91%
EPS(NY)2.6
Fwd EY7.17%
FCF(TTM)3.01
FCFY8.32%
OCF(TTM)4.89
OCFY13.51%
SpS36.94
BVpS29.64
TBVpS8.27
PEG (NY)N/A
PEG (5Y)N/A
Graham Number21.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 2.3% | ||
| ROCE | 3.96% | ||
| ROIC | 3.13% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 4.95% | ||
| OM | 6.4% | ||
| PM (TTM) | 1.84% | ||
| GM | 23.58% | ||
| FCFM | 8.15% |
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%
ROICexgc growth 3Y-30.18%
ROICexgc 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-Score7
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.62 | ||
| Debt/EBITDA | 4.62 | ||
| Cap/Depr | 59.82% | ||
| Cap/Sales | 5.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.78% | ||
| Profit Quality | 441.79% | ||
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.87 |
F-Score7
WACC7.28%
ROIC/WACC0.43
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)-57.41%
EPS 3Y-23.73%
EPS 5Y-1.44%
EPS Q2Q%9.09%
EPS Next Y-75.81%
EPS Next 2Y22.49%
EPS Next 3Y26.14%
EPS Next 5Y26.96%
Revenue 1Y (TTM)-1.15%
Revenue growth 3Y6.42%
Revenue growth 5Y11.18%
Sales Q2Q%9.99%
Revenue Next Year3.53%
Revenue Next 2Y4.1%
Revenue Next 3Y3.64%
Revenue Next 5Y3.15%
EBIT growth 1Y7%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year105.34%
EBIT Next 3Y44.67%
EBIT Next 5Y33.72%
FCF growth 1Y38.88%
FCF growth 3Y5.61%
FCF growth 5YN/A
OCF growth 1Y-9.8%
OCF growth 3Y6.01%
OCF growth 5Y18.28%
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.
What is the valuation status for DAR stock?
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 valuation of DARLING INGREDIENTS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for DARLING INGREDIENTS INC (DAR) is 52.45 and the Price/Book (PB) ratio is 1.22.
Can you provide the financial health for DAR stock?
The financial health rating of DARLING INGREDIENTS INC (DAR) is 4 / 10.