NYSE:DAR

Stock Analysis Report

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Executive Summary

Darling Ingredients Inc. develops, produces, and sells natural ingredients from edible and inedible bio-nutrients.


Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

How has Darling Ingredients's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DAR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.4%

DAR

3.2%

US Food

1.7%

US Market


1 Year Return

24.3%

DAR

3.8%

US Food

8.5%

US Market

Return vs Industry: DAR exceeded the US Food industry which returned 4.6% over the past year.

Return vs Market: DAR exceeded the US Market which returned 9.3% over the past year.


Shareholder returns

DARIndustryMarket
7 Day-2.4%3.2%1.7%
30 Day20.0%6.0%9.5%
90 Day-7.4%0.9%0.1%
1 Year24.3%24.3%6.4%3.8%11.0%8.5%
3 Year51.7%51.7%-4.4%-12.4%32.2%23.5%
5 Year52.7%52.7%31.0%15.5%58.6%40.8%

Price Volatility Vs. Market

How volatile is Darling Ingredients's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Darling Ingredients undervalued compared to its fair value and its price relative to the market?

10.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DAR ($23.92) is trading above our estimate of fair value ($6.54)

Significantly Below Fair Value: DAR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DAR is good value based on its PE Ratio (10.3x) compared to the Food industry average (21.4x).

PE vs Market: DAR is good value based on its PE Ratio (10.3x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: DAR is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: DAR is good value based on its PB Ratio (1.5x) compared to the US Food industry average (2x).


Next Steps

Future Growth

How is Darling Ingredients forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DAR's forecast earnings growth (4.8% per year) is above the savings rate (2.2%).

Earnings vs Market: DAR's earnings (4.8% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: DAR's earnings are forecast to grow, but not significantly.

Revenue vs Market: DAR's revenue (2.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: DAR's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if DAR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Darling Ingredients performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DAR has high quality earnings.

Growing Profit Margin: DAR's current net profit margins (11.2%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: DAR's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: DAR's earnings growth over the past year (1547.3%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: DAR earnings growth over the past year (1547.3%) exceeded the Food industry -1%.


Return on Equity

High ROE: DAR's Return on Equity (14.9%) is considered low.


Next Steps

Financial Health

How is Darling Ingredients's financial position?


Financial Position Analysis

Short Term Liabilities: DAR's short term assets ($930.1M) exceed its short term liabilities ($651.7M).

Long Term Liabilities: DAR's short term assets ($930.1M) do not cover its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: DAR's debt to equity ratio (67.1%) is considered high.

Reducing Debt: DAR's debt to equity ratio has reduced from 106.7% to 67.1% over the past 5 years.

Debt Coverage: DAR's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: DAR's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Darling Ingredients's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DAR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate DAR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DAR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DAR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DAR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Randall Stuewe (56yo)

17.33yrs

Tenure

US$7,630,211

Compensation

Mr. Randall C. Stuewe, also known as Randy, has been the Chairman and Chief Executive Officer of Darling Ingredients Inc. since February, 3, 2003. Mr. Stuewe served as the President of ConAgra Foods, Inc.  ...


CEO Compensation Analysis

Compensation vs Market: Randall's total compensation ($USD7.63M) is about average for companies of similar size in the US market ($USD5.87M).

Compensation vs Earnings: Randall's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Randall Stuewe
Chairman & CEO17.33yrsUS$7.63m0.59% $22.9m
Brad Phillips
Executive VP & CFO2.42yrsUS$1.64m0.045% $1.7m
John Muse
Executive VP & Chief Administrative Officer2.42yrsUS$1.83m0.085% $3.3m
John Bullock
Executive VP of Specialty Ingredients & Chief Strategy Officer6.42yrsUS$2.33m0.13% $5.1m
Jan van der Velden
Executive Vice President of International Rendering & Specialties6.42yrsUS$1.95m0.081% $3.1m
Brenda Snell
Chief Accounting Officer2.5yrsno data0.026% $1.0m
James Stark
Vice President of Investor Relations0.50yrno datano data
John Sterling
Executive VP12.83yrsUS$2.04m0.20% $7.7m
Melissa Gaither
Vice President of Global Communications & Sustainabilityno datano datano data
Michael Rath
Chief Risk Officer & Senior VP – Commoditiesno dataUS$715.22kno data

4.5yrs

Average Tenure

58yo

Average Age

Experienced Management: DAR's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randall Stuewe
Chairman & CEO17.33yrsUS$7.63m0.59% $22.9m
Michael Rescoe
Independent Director3.08yrsUS$204.00k0.015% $581.9k
Charles Macaluso
Independent Lead Directorno dataUS$314.00k0.061% $2.3m
Linda Goodspeed
Independent Director3.08yrsUS$208.50k0.015% $581.9k
Mary Korby
Independent Director5.75yrsUS$227.25k0.021% $830.5k
Dirk Kloosterboer
Director6.42yrsUS$198.50k0.12% $4.6m
Gary Mize
Independent Director4.42yrsUS$210.00k0.019% $730.2k
Nicole Ringenberg
Independent Director1.58yrsUS$204.50k0.0083% $319.8k
Charles Adair
Independent Director3.08yrsUS$210.00k0.019% $737.5k
Elizabeth Albright
Independent Director0.083yrno data0.0033% $128.2k

3.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: DAR's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DAR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Darling Ingredients Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Darling Ingredients Inc.
  • Ticker: DAR
  • Exchange: NYSE
  • Founded: 1882
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$3.872b
  • Shares outstanding: 161.86m
  • Website: https://www.darlingii.com

Number of Employees


Location

  • Darling Ingredients Inc.
  • 5601 North MacArthur Boulevard
  • Irving
  • Texas
  • 75038
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DARNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1994
43DDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1994

Biography

Darling Ingredients Inc. develops, produces, and sells natural ingredients from edible and inedible bio-nutrients. The company operates through three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. It offers ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries. The company collects and transforms various animal by-product streams into useable and specialty ingredients, such as collagen, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstock, green energy, natural casings, and hides. It also recovers and converts used cooking oil and animal fats, and residual bakery products into valuable feed and fuel ingredients. In addition, the company provides environmental services, including grease trap collection and disposal services to food service establishments. It primarily operates under the Sonac, Dar Pro, Rothsay, Rousselot, CTH, Ecoson, and Rendac brand names in North America, Europe, China, South America, Australia, and internationally. The company was formerly known as Darling International Inc. and changed its name to Darling Ingredients Inc. in May 2014. Darling Ingredients Inc. was founded in 1882 and is headquartered in Irving, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 02:24
End of Day Share Price2020/06/02 00:00
Earnings2020/03/28
Annual Earnings2019/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.