DARLING INGREDIENTS INC (DAR) Stock Fundamental Analysis
USA - NYSE:DAR - US2372661015 - Common Stock
34.43 USD
-0.32 (-0.92%)
34.43 USD
0 (0%)
Taking everything into account, DAR scores 4 out of 10 in our fundamental rating. DAR was compared to 87 industry peers in the Food Products industry. DAR has an average financial health and profitability rating. 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.
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 has a Return On Assets of 1.03%. This is comparable to the rest of the industry: DAR outperforms 43.68% of its industry peers.
DAR has a Return On Equity (2.30%) which is in line with its industry peers.
The Return On Invested Capital of DAR (3.13%) is comparable to the rest of the industry.
DAR had an Average Return On Invested Capital over the past 3 years of 4.65%. This is significantly below the industry average of 28.37%.
| 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 (1.84%) which is in line with its industry peers.
DAR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.40%, DAR is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
DAR's Operating Margin has improved in the last couple of years.
DAR has a Gross Margin (23.58%) which is in line with its industry peers.
DAR's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), DAR is destroying value.
DAR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DAR has less shares outstanding
DAR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.84 indicates that DAR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.84, DAR perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
DAR has a debt to FCF ratio of 8.62. This is a slightly negative value and a sign of low solvency as DAR would need 8.62 years to pay back of all of its debts.
DAR has a better Debt to FCF ratio (8.62) than 63.22% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that DAR is somewhat dependend on debt financing.
The Debt to Equity ratio of DAR (0.86) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 8.62 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.45
WACC6.94%
2.3 Liquidity
A Current Ratio of 1.49 indicates that DAR should not have too much problems paying its short term obligations.
DAR's Current ratio of 1.49 is in line compared to the rest of the industry. DAR outperforms 47.13% of its industry peers.
DAR has a Quick Ratio of 1.49. 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 of 0.87. This is comparable to the rest of the industry: DAR outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
DAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.41%.
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 -1.15% in the past year.
The Revenue has been growing by 11.18% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 3.15% on average over the next years.
EPS Next Y-75.28%
EPS Next 2Y22.4%
EPS Next 3Y26.14%
EPS Next 5Y26.96%
Revenue Next Year3.39%
Revenue Next 2Y3.75%
Revenue Next 3Y3.62%
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.
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
The Price/Earnings ratio is 49.90, which means the current valuation is very expensive for DAR.
Compared to the rest of the industry, the Price/Earnings ratio of DAR is on the same level as its industry peers.
DAR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.56.
The Price/Forward Earnings ratio is 13.28, which indicates a correct valuation of DAR.
Based on the Price/Forward Earnings ratio, DAR is valued a bit cheaper than 75.86% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.62. DAR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.9 | ||
| Fwd PE | 13.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as DAR.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DAR indicates a rather cheap valuation: DAR is cheaper than 82.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.44 | ||
| EV/EBITDA | 10.91 |
4.3 Compensation for Growth
DAR's earnings are expected to grow with 26.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.4%
EPS Next 3Y26.14%
5. Dividend
5.1 Amount
No dividends for DAR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.43
-0.32 (-0.92%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners109.57%
Inst Owner Change1.72%
Ins Owners0.99%
Ins Owner Change-6.28%
Market Cap5.45B
Revenue(TTM)5.84B
Net Income(TTM)107.77M
Analysts84.21
Price Target48.32 (40.34%)
Short Float %7.48%
Short Ratio4.54
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)-1.36%
PT rev (3m)-1.79%
EPS NQ rev (1m)-28.11%
EPS NQ rev (3m)-39.27%
EPS NY rev (1m)-44.22%
EPS NY rev (3m)-70.74%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.9 | ||
| Fwd PE | 13.28 | ||
| P/S | 0.93 | ||
| P/FCF | 11.44 | ||
| P/OCF | 7.04 | ||
| P/B | 1.16 | ||
| P/tB | 4.16 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)0.69
EY2%
EPS(NY)2.59
Fwd EY7.53%
FCF(TTM)3.01
FCFY8.74%
OCF(TTM)4.89
OCFY14.2%
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 | 1.84 |
F-Score7
WACC6.94%
ROIC/WACC0.45
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-75.28%
EPS Next 2Y22.4%
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 Year3.39%
Revenue Next 2Y3.75%
Revenue Next 3Y3.62%
Revenue Next 5Y3.15%
EBIT growth 1Y7%
EBIT growth 3Y-19.18%
EBIT growth 5Y25.68%
EBIT Next Year118.04%
EBIT Next 3Y47.19%
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 49.9 and the Price/Book (PB) ratio is 1.16.
Can you provide the financial health for DAR stock?
The financial health rating of DARLING INGREDIENTS INC (DAR) is 4 / 10.