Darling Ingredients (DAR): Exploring Valuation Following Mixed Performance and Investor Sentiment Shifts

Darling Ingredients (DAR) stock has delivered mixed results lately, with shares down over 16% for the past year but up slightly in the most recent trading day. Investors are weighing recent performance trends in relation to the company’s long-term fundamentals.

See our latest analysis for Darling Ingredients.

While Darling Ingredients enjoyed a strong single-day share price return of 3.89%, this bounce comes after months of lackluster momentum, with a total return of -16.63% over the past year. The ups and downs highlight a market that is still recalibrating its expectations for the business, as growth potential gives way to current risk perceptions.

If the volatility in Darling’s returns has you curious about other opportunities, now is an ideal time to broaden your outlook and discover fast growing stocks with high insider ownership

With shares trading at a notable discount to analyst price targets and meaningful net income growth reported, investors now face a key question: Is Darling Ingredients truly undervalued, or is the market correctly pricing in the years ahead?

Most Popular Narrative: 27.7% Undervalued

With Darling Ingredients closing at $33.38 and the most popular narrative setting fair value at $46.17, the market price trails the narrative’s outlook. This suggests notable upside according to this forecast.

Ongoing expansion into high-growth, high-margin specialty ingredients via the Nextida JV and rising global demand for health & wellness products (e.g., collagen, functional peptides), backed by scientific validation and early repeat orders, is expected to meaningfully broaden Darling's product portfolio, diversify revenues, and drive Food segment EBITDA growth starting in 2026.

Read the complete narrative.

Want to see what’s behind this ambitious target? The narrative draws from bold margin, revenue and profit assumptions, some rarely seen outside high-growth tech. Find out which game-changing metrics underpin the fair value calculation.

Result: Fair Value of $46.17 (UNDERVALUED)

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

However, regulatory uncertainty and volatile feedstock costs could still derail Darling’s recovery, which casts doubt on the upbeat forecast for margin expansion.

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

Another View: Earnings Multiple Suggests Caution

Looking at earnings, Darling Ingredients trades at a price-to-earnings ratio of 49, which is much higher than both the US Food industry average of 19.4 and similar peers at 17.2. While SWS’s fair ratio is 60.5, current levels signal valuation risk if growth does not accelerate as forecast. Is the market too optimistic, or is there hidden upside?

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

Build Your Own Darling Ingredients Narrative

If you have a different perspective or are eager to dig into the numbers yourself, you can craft a personalized narrative 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 3 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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