NYSE:DAR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


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


Market Performance


7 Day Return

1.4%

DAR

-0.4%

US Food

1.0%

US Market


1 Year Return

-2.7%

DAR

3.4%

US Food

6.7%

US Market

Return vs Industry: DAR underperformed the US Food industry which returned 3.4% over the past year.

Return vs Market: DAR underperformed the US Market which returned 6.7% over the past year.


Share holder returns

DARIndustryMarket
7 Day1.4%-0.4%1.0%
30 Day-6.7%-1.6%-1.8%
90 Day-4.1%0.8%-1.8%
1 Year-2.7%-2.7%6.5%3.4%9.1%6.7%
3 Year42.1%42.1%-1.4%-10.1%46.1%36.6%
5 Year6.8%6.8%47.5%29.9%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

39.58x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: DAR ($18.94) is trading above our estimate of fair value ($8.23)

Significantly Undervalued: DAR is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: DAR is poor value based on its PE Ratio (39.6x) compared to the Food industry average (25.4x).

PE vs Market: DAR is poor value based on its PE Ratio (39.6x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: DAR is good value based on its PEG Ratio (0.9x)


Price Based on Value of Assets

PB vs Industry: DAR is good value based on its PB Ratio (1.3x) compared to the US Food industry average (2.1x).


Next Steps

Future Growth

How is Darling Ingredients expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

45.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: DAR's forecast earnings growth (45.3% per year) is above the savings rate (2.7%).

Earnings vs Market: DAR's earnings (45.3% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: DAR's revenue (4.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: DAR's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: DAR's Return on Equity is forecast to be low in 3 years time (6%).


Next Steps

Past Performance

How has Darling Ingredients performed over the past 5 years?

13.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DAR's earnings have grown by 13.8% per year over the past 5 years.

Accelerating Growth: DAR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DAR had negative earnings growth (-56.4%) over the past year, making it difficult to compare to the Food industry average (-22.7%).


Return on Equity

High ROE: DAR's Return on Equity (3.6%) is considered low.


Return on Assets

ROA vs Industry: DAR's Return on Assets is below or equal to the Food industry average last year.


Return on Capital Employed

ROCE Improving: DAR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Darling Ingredients's financial position?


Financial Position Analysis

Short Term Liabilities: DAR's short term assets ($867.1M) exceeds its short term liabilities ($566.3M)

Long Term Liabilities: DAR's short term assets ($867.1M) do not cover its long term liabilities ($2.1B)


Debt to Equity History and Analysis

Debt Level: DAR's debt to equity ratio (69.6%) is considered high

Reducing Debt: DAR's debt to equity ratio has reduced from 111.6% to 69.6% over the past 5 years.

Debt Coverage: DAR's debt is well covered by operating cash flow (25.4%).

Interest Coverage: DAR's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet

Inventory Level: DAR has a high level of physical assets or inventory.

Debt Coverage by Assets: DAR's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

What is the CEO of Darling Ingredients's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Randall Stuewe (56yo)

16.7yrs

Tenure

US$5,846,278

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 ($USD5.85M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

3.5yrs

Average Tenure

59yo

Average Age

Experienced Management: DAR's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

68yo

Average Age

Experienced Board: DAR's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$19,80015 Aug 19
Charles Adair
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$19.80
SellUS$1,449,05711 Mar 19
Randall Stuewe
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares68,940
Max PriceUS$21.02
BuyUS$21,00011 Mar 19
Charles Adair
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$21.00
SellUS$463,34707 Mar 19
Randall Stuewe
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares21,060
Max PriceUS$22.00
BuyUS$20,15020 Nov 18
Charles Adair
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$20.15

Ownership Breakdown


Management Team

  • John Sterling (55yo)

    Executive VP

    • Tenure: 12.2yrs
    • Compensation: US$2.04m
  • John Muse (70yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 1.8yrs
    • Compensation: US$3.23m
  • Randall Stuewe (56yo)

    Chairman & CEO

    • Tenure: 16.7yrs
    • Compensation: US$5.85m
  • Brad Phillips (60yo)

    Executive VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$1.06m
  • Michael Rath (54yo)

    Chief Risk Officer & Senior VP – Commodities

    • Tenure: 0yrs
    • Compensation: US$715.22k
  • Melissa Gaither

    Vice President of Investor Relations & Global Communications

    • Tenure: 0yrs
  • Jan van der Velden (55yo)

    Executive Vice President of International Rendering & Specialties

    • Tenure: 5.8yrs
    • Compensation: US$1.69m
  • Rick Elrod (59yo)

    Executive Vice President of Darling U.S. Rendering Operations

    • Tenure: 4.5yrs
    • Compensation: US$1.29m
  • Jos Vervoort (60yo)

    Executive Vice President of Rousselot

    • Tenure: 2.4yrs
    • Compensation: US$1.27m
  • Brenda Snell (62yo)

    Chief Accounting Officer

    • Tenure: 1.8yrs

Board Members

  • Michael Rescoe (66yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$206.50k
  • Cynthia Pharr Lee (70yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$206.00k
  • Charles Macaluso (75yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$316.50k
  • Linda Goodspeed (57yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$208.00k
  • Mary Korby (74yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$227.25k
  • Dirk Kloosterboer (65yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$193.98k
  • Randall Stuewe (56yo)

    Chairman & CEO

    • Tenure: 16.7yrs
    • Compensation: US$5.85m
  • Gary Mize (68yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$210.50k
  • Gene Ewing (70yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$233.00k
  • Chuck Adair (68yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$211.50k

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$3.120b
  • Shares outstanding: 164.75m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:19
End of Day Share Price2019/10/11 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.

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