NYSE:DAR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value with moderate growth potential.


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

-4.9%

NYSE:DAR

-0.1%

US Food

-1.0%

US Market


1 Year Return

-4.9%

NYSE:DAR

-1.5%

US Food

-0.4%

US Market

DAR underperformed the Food industry which returned -1.6% over the past year.

DAR underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

DARIndustryMarket
7 Day-4.9%-0.1%-1.0%
30 Day-3.8%-0.01%-3.3%
90 Day-6.0%1.8%0.4%
1 Year-4.9%-4.9%1.1%-1.5%1.8%-0.4%
3 Year35.6%35.6%-7.6%-15.4%39.4%30.4%
5 Year-2.5%-2.5%42.8%26.0%54.2%37.1%

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?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Darling Ingredients's share price is below the future cash flow value, and at a moderate discount (> 20%).

Darling Ingredients's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Darling Ingredients is overvalued based on earnings compared to the US Food industry average.

Darling Ingredients is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Darling Ingredients is good value based on expected growth next year.


Price Based on Value of Assets

Darling Ingredients is good value based on assets compared to the US Food industry average.


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

Darling Ingredients's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).

Darling Ingredients's earnings are expected to grow significantly at over 20% yearly.

Darling Ingredients's revenue growth is positive but not above the United States of America market average.

Darling Ingredients's earnings growth is expected to exceed the United States of America market average.

Darling Ingredients's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Darling Ingredients is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Darling Ingredients's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Darling Ingredients's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Darling Ingredients's 1-year earnings growth is negative, it can't be compared to the US Food industry average.


Return on Equity

Darling Ingredients has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Darling Ingredients used its assets less efficiently than the US Food industry average last year based on Return on Assets.


Return on Capital Employed

Darling Ingredients's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Darling Ingredients's financial position?


Financial Position Analysis

Darling Ingredients is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Darling Ingredients's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Darling Ingredients's level of debt (69.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (111.6% vs 69.6% today).

Debt is well covered by operating cash flow (25.4%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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 and Payments Analysis

Unable to evaluate Darling Ingredients's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Darling Ingredients's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Darling Ingredients has not reported any payouts.

Unable to verify if Darling Ingredients's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Darling Ingredients has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Darling Ingredients's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Randall Stuewe (56yo)

16.5yrs

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

Randall's remuneration is about average for companies of similar size in United States of America.

Randall's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

59yo

Average Age

The tenure for the Darling Ingredients management team is about average.


Board Age and Tenure

3.6yrs

Average Tenure

68yo

Average Age

The tenure for the Darling Ingredients board of directors is about average.


Insider Trading

More shares have been bought than sold by Darling Ingredients individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

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

Ownership Breakdown


Management Team

  • John Muse (70yo)

    Executive VP & Chief Administrative Officer

    • Tenure: 1.6yrs
    • Compensation: $3.23m
  • Brad Phillips (60yo)

    Executive VP & CFO

    • Tenure: 1.6yrs
    • Compensation: $1.06m
  • Jan van der Velden (55yo)

    Executive Vice President of International Rendering & Specialties

    • Tenure: 5.6yrs
    • Compensation: $1.69m
  • Brenda Snell (62yo)

    Chief Accounting Officer

    • Tenure: 1.7yrs
  • Rick Elrod (59yo)

    Executive Vice President of Darling U.S. Rendering Operations

    • Tenure: 4.3yrs
    • Compensation: $1.29m
  • Randall Stuewe (56yo)

    Chairman & CEO

    • Tenure: 16.5yrs
    • Compensation: $5.85m
  • John Sterling (55yo)

    Executive VP

    • Tenure: 12.0yrs
    • Compensation: $2.04m
  • Melissa Gaither

    Vice President of Investor Relations & Global Communications

  • Jos Vervoort (60yo)

    Executive Vice President of Rousselot

    • Tenure: 2.3yrs
    • Compensation: $1.27m
  • Michael Rath (54yo)

    Chief Risk Officer & Senior VP – Commodities

    • Compensation: $715.22k

Board Members

  • Cynthia Pharr Lee (70yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: $206.00k
  • Michael Rescoe (66yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $206.50k
  • Gene Ewing (70yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $233.00k
  • Randall Stuewe (56yo)

    Chairman & CEO

    • Tenure: 16.5yrs
    • Compensation: $5.85m
  • Dirk Kloosterboer (65yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: $193.98k
  • Mary Korby (74yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: $227.25k
  • Chuck Adair (68yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $211.50k
  • Linda Goodspeed (57yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: $208.00k
  • Charles Macaluso (75yo)

    Lead Director

    • Compensation: $316.50k
  • Gary Mize (68yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: $210.50k

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$3.125b
  • Shares outstanding: 164.75m
  • Website: Click here

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 Analysis2019/08/16 23:37
End of Day Share Price2019/08/16 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.