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

16.0%

DAR

0.9%

US Food

1.2%

US Market


1 Year Return

66.3%

DAR

5.6%

US Food

16.8%

US Market

Return vs Industry: DAR exceeded the US Food industry which returned 5.6% over the past year.

Return vs Market: DAR exceeded the US Market which returned 16.4% over the past year.


Shareholder returns

DARIndustryMarket
7 Day16.0%0.9%1.2%
30 Day34.3%7.0%4.9%
90 Day61.1%9.9%20.0%
1 Year66.3%66.3%8.3%5.6%19.3%16.8%
3 Year92.5%92.5%4.5%-4.2%43.7%34.4%
5 Year137.4%137.4%16.0%0.6%75.5%56.6%

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 compared to its fair value and its price relative to the market?

12.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate DAR's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate DAR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: DAR is good value based on its PE Ratio (12.7x) compared to the US Food industry average (26.1x).

PE vs Market: DAR is good value based on its PE Ratio (12.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: DAR is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: DAR's PB Ratio (2x) is in line with the US Food industry average.


Next Steps

Future Growth

How is Darling Ingredients forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DAR's forecast earnings growth (22% per year) is above the savings rate (2.2%).

Earnings vs Market: DAR's earnings (22% per year) are forecast to grow slower than the US market (23.7% 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 (9.4% 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 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?

28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DAR has high quality earnings.

Growing Profit Margin: DAR's current net profit margins (12.3%) are higher than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: DAR's earnings have grown significantly by 28.7% per year over the past 5 years.

Accelerating Growth: DAR's earnings growth over the past year (435.8%) exceeds its 5-year average (28.7% per year).

Earnings vs Industry: DAR earnings growth over the past year (435.8%) exceeded the Food industry -5.4%.


Return on Equity

High ROE: DAR's Return on Equity (15.7%) 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 ($931.1M) exceed its short term liabilities ($606.3M).

Long Term Liabilities: DAR's short term assets ($931.1M) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: DAR's debt to equity ratio (59.1%) is considered high.

Reducing Debt: DAR's debt to equity ratio has reduced from 104% to 59.1% over the past 5 years.

Debt Coverage: DAR's debt is well covered by operating cash flow (29.6%).

Interest Coverage: DAR's interest payments on its debt are not well covered by EBIT (1.5x 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?

4.3yrs

Average management tenure


CEO

Randall Stuewe (57 yo)

17.5yrs

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 ($USD7.63M) is about average for companies of similar size in the US market ($USD7.23M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Randall Stuewe
Chairman & CEO17.5yrsUS$7.63m0.59%
$ 31.1m
Brad Phillips
Executive VP & CFO2.58yrsUS$1.64m0.045%
$ 2.4m
John Muse
Executive VP & Chief Administrative Officer2.58yrsUS$1.83m0.085%
$ 4.4m
John Bullock
Executive VP of Specialty Ingredients & Chief Strategy Officer6.58yrsUS$2.33m0.13%
$ 6.9m
Jan van der Velden
Executive Vice President of International Rendering & Specialties6.58yrsUS$1.95m0.081%
$ 4.3m
Brenda Snell
Chief Accounting Officer2.67yrsno data0.026%
$ 1.4m
James Stark
Vice President of Investor Relations0.67yrno datano data
John Sterling
Executive VP13yrsUS$2.04m0.20%
$ 10.4m
Melissa Gaither
Vice President of Global Communications & Sustainabilityno datano datano data
Michael Rath
Chief Risk Officer & Senior VP – Commoditiesno dataUS$715.22kno data
Rick Elrod
Executive Vice President of Darling U.S. Rendering Operations5.33yrsUS$1.29m0.12%
$ 6.4m
Jos Vervoort
Executive Vice President of Rousselot3.25yrsUS$1.27m0.030%
$ 1.6m

4.3yrs

Average Tenure

60yo

Average Age

Experienced Management: DAR's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Randall Stuewe
Chairman & CEO17.5yrsUS$7.63m0.59%
$ 31.1m
Michael Rescoe
Independent Director3.25yrsUS$204.00k0.015%
$ 789.9k
Charles Macaluso
Independent Lead Directorno dataUS$314.00k0.061%
$ 3.2m
Linda Goodspeed
Independent Director3.25yrsUS$208.50k0.015%
$ 789.9k
Mary Korby
Independent Director5.92yrsUS$227.25k0.021%
$ 1.1m
Dirk Kloosterboer
Director6.58yrsUS$198.50k0.12%
$ 6.3m
Gary Mize
Independent Director4.58yrsUS$210.00k0.019%
$ 991.3k
Nicole Ringenberg
Independent Director1.75yrsUS$204.50k0.0083%
$ 433.9k
Charles Adair
Independent Director3.25yrsUS$210.00k0.019%
$ 1.0m
Elizabeth Albright
Independent Director0.25yrno data0.0033%
$ 174.1k

3.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: DAR's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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$5.259b
  • Shares outstanding: 161.96m
  • 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 Analysis2020/08/11 00:32
End of Day Share Price2020/08/10 00:00
Earnings2020/06/27
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.