Darling Ingredients Inc.
Darling Ingredients Inc. Fundamental Analysis
Darling Ingredients Inc. (DAR) shows weak financial fundamentals with a PE ratio of 162.82, profit margin of 1.02%, and ROE of 1.36%. The company generates $6.2B in annual revenue with weak year-over-year growth of -15.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DAR's fundamental strength across five key dimensions:
Efficiency Score
WeakDAR struggles to generate sufficient returns from assets.
Valuation Score
ModerateDAR shows balanced valuation metrics.
Growth Score
WeakDAR faces weak or negative growth trends.
Financial Health Score
ExcellentDAR maintains a strong and stable balance sheet.
Profitability Score
ModerateDAR maintains healthy but balanced margins.
Key Financial Metrics
Is DAR Expensive or Cheap?
P/E Ratio
DAR trades at 162.82 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, DAR's PEG of -3.95 indicates potential undervaluation.
Price to Book
The market values Darling Ingredients Inc. at 2.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.48 times EBITDA. This is generally considered low.
How Well Does DAR Make Money?
Net Profit Margin
For every $100 in sales, Darling Ingredients Inc. keeps $1.02 as profit after all expenses.
Operating Margin
Core operations generate 5.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.36 in profit for every $100 of shareholder equity.
ROA
Darling Ingredients Inc. generates $0.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Darling Ingredients Inc. produces operating cash flow of $1.06B, showing steady but balanced cash generation.
Free Cash Flow
Darling Ingredients Inc. generates strong free cash flow of $681.11M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.29 in free cash annually.
FCF Yield
DAR converts 6.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
162.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.88
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How DAR Stacks Against Its Sector Peers
| Metric | DAR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 162.82 | 22.36 | Worse (Expensive) |
| ROE | 1.36% | 1238.00% | Weak |
| Net Margin | 1.02% | -5096.00% (disorted) | Weak |
| Debt/Equity | 0.88 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 1.50 | 2.47 | Neutral |
| ROA | 0.61% | -191998.00% (disorted) | Weak |
DAR outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Darling Ingredients Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.02%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-8.10%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
138.43%
Industry Style: Defensive, Dividend, Low Volatility
High Growth