Assessing Darling Ingredients's Valuation Following Chief Operating Officer Departure and Performance Headwinds

If you’re holding Darling Ingredients (NYSE:DAR) or thinking about it, today’s news is hard to ignore. The company has announced the departure of Matt Jansen, who served as Chief Operating Officer for North America. Executive changes at the top, especially in key markets like this one, often prompt questions about what’s next for strategy and operations. Because Jansen’s exit comes under a formal termination agreement with severance, investors might view this not just as routine turnover but as a potential pivot point for the business. This leadership shift arrives at a complicated time for shareholders. Over the past year, Darling Ingredients has seen its stock price decline by 15%, adding to a three-year drawdown of 51%. The steady drop in earnings per share over the same period hints at deeper hurdles, though the market’s relatively high P/E ratio suggests some participants are still betting on long-term stability or recovery. Recent moves in the stock price have not pointed to a turnaround yet, keeping the broader mood cautious. After another challenging year and a shake-up in the executive ranks, questions remain about whether this is a window to pick up shares at a discount, or if the market is already factoring in all the future growth or risk.

Most Popular Narrative: 30.4% Undervalued

According to the most widely followed narrative, Darling Ingredients appears substantially undervalued, trading well below the consensus fair value determined by current analyst assumptions.

Policy changes favoring U.S.-sourced renewable diesel feedstocks, higher domestic fat prices, reduced foreign competition, and increasing U.S. biofuel mandates are expected to structurally expand demand and improve pricing power in Darling's Feed and Fuel segments. These factors are cited as drivers of higher revenue and margin expansion through 2026 and beyond.

What is the secret behind this bullish outlook? It is a blend of bold growth forecasts and a valuation formula that is anything but ordinary. Want to discover the future earnings targets and profit multiples that have analysts calling for a value nearly a third higher than today’s price? The answer might just surprise you.

Result: Fair Value of $46.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing regulatory uncertainty and high feedstock costs remain major headwinds. These factors could quickly undermine even the most optimistic outlook.

Find out about the key risks to this Darling Ingredients narrative.

Another View: By the Numbers

Taking a closer look, the market's favored ratio comparison actually points to Darling Ingredients trading at a significantly higher value than the broader US Food sector average. This challenges the whole idea of an obvious bargain. Is this optimism misplaced?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Darling Ingredients to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Darling Ingredients Narrative

If you have your own perspective or want to dig into the numbers personally, you can build your own take in just a few minutes. Do it your way.

A great starting point for your Darling Ingredients research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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