Darling Ingredients (DAR) AI Stock Analysis

• Market Cap: $9.03B
• Dividend Yield: N/A
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 94.1
• Beta (1Y): 0.75
• Revenue Growth: -0.83%
• EPS Growth: -58.55%
• Country: US
• Employees: 15,500
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.35
• Shares Outstanding: 158,603,550
• 10 Day Avg. Volume: 3,092,136
• 30 Day Avg. Volume: 2,718,455
• PEG Ratio: -1.22
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 8.70
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 10.83
• Enterprise Value/Ebitda: 15.86
• 1Y Price Target: $61.44
• Price Target Upside: 7.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.97
• Revenue Forecast (FY): $6.42B

• Rating: 64 Neutral
• Price Target: $57.00 ▲(0.16% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is anchored by solid cash-flow strength and improving operating momentum in core ingredients, tempered by a major profitability compression and elevated (though improving) leverage. Technically the trend is strong but looks overheated, while valuation is a key constraint due to the very high P/E and lack of a dividend yield.

Positive Factors

Consistent strong cash generation

Durable, above‑trend cash generation (operating cash flow ≈$1.06B and FCF ≈$679M) supports sustained debt service, capex and bolt‑on M&A without relying on equity issuance. Persistent positive FCF increases financial optionality and funds strategic investments over the next 2–6 months and beyond.

Core ingredients momentum and margin expansion

Repeated quarter-to-quarter EBITDA gains and margin expansion in Feed and Food show underlying operational improvement and pricing/volume resilience. Strength across diversified end markets (animal feed, food, collagen) supports more stable cash flows and less cyclicality over a multi‑quarter horizon.

Strategic JV and targeted M&A to expand collagen scale

A majority JV in collagen (NewCo Collagen) and selection as stalking horse for Potense Brazil assets are structural moves to capture high‑growth collagen and protein markets. These transactions increase scale, product mix quality, and cross‑sell potential, enhancing long‑run ingredient segment growth and margin potential.

Negative Factors

Severe profitability compression

A dramatic decline in net margins and EBITDA reduces the firm's ability to convert revenue into returns and weakens long‑term ROIC. Even with revenue growth, sustained low margins erode shareholder value, constrain reinvestment returns and heighten sensitivity to raw material or pricing shifts.

Fuel segment volatility and policy exposure

Heavy exposure to renewable fuel economics makes earnings contingent on public policy (RVO/LCFS) and feedstock flows. Policy delays or adverse rulings can materially depress fuel margins and cash generation, creating persistent volatility in consolidated results and complicating multi‑period planning.

Elevated leverage and weak returns on equity

Although leverage has improved, the company still carries elevated debt relative to historical lows while ROE collapsed, limiting financial flexibility. If margins remain depressed, servicing debt and funding growth without diluting equity or increasing leverage will be more difficult over the medium term.

Darling Ingredients Business Overview & Revenue Model

Company Description

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 Ingredients. It offers ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries. The company also collects and transforms various animal by-product streams into useable and specialty ingredients, such as collagen, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstock, green energy, natural casings, and hides. In addition, it recovers and converts used cooking oil and animal fats, and residual bakery products into valuable feed and fuel ingredients. Further, the company provides environmental services, including grease trap collection and disposal services to food service establishments. It primarily operates under the Sonac, Dar Pro, Rothsay, Rousselot, Nature Safe, CleanStar, Peptan, Cookie Meal, Bakery Feeds, Ecoson, and Rendac brand names in North America, Europe, China, South America, Australia, and internationally. The company was formerly known as Darling International Inc. and changed its name to Darling Ingredients Inc. in May 2014. Darling Ingredients Inc. was founded in 1882 and is headquartered in Irving, Texas.

How the Company Makes Money

Darling Ingredients generates revenue through multiple key streams, primarily from the sale of rendered products, which include protein meals and fats used in animal feed and pet food. The company also earns income from its ingredients segment, which provides specialized products such as gelatin and hydrolyzed proteins for food and pharmaceutical applications. Additionally, Darling produces renewable diesel and other fuel products from its rendering operations, contributing to its revenue. Significant partnerships with food processors and agricultural businesses enhance its supply chain and provide a steady stream of raw materials, while the growing demand for sustainable and environmentally friendly products supports its earnings. The company's focus on innovation and sustainability further positions it favorably in the market, allowing it to capitalize on emerging trends in both the food and energy sectors.

Darling Ingredients Financial Statement Overview

Summary

Strong and improving free cash flow (FCF up to ~$679M in 2026, +42.7% YoY) supports debt service and reinvestment, and revenue has grown long-term. However, profitability has deteriorated sharply (net margin ~1.0% in 2026 vs double-digits in 2021–2022) and ROE fell to ~1.3%, with leverage still elevated versus earlier years despite improvement.

Income Statement

Revenue has grown over the long run (from $3.6B in 2020 to $6.1B in 2026), including ~5.0% growth in the latest annual period, but the earnings profile has weakened materially versus prior years. Profitability has compressed sharply: net margin fell from ~13.7% (2021) and ~11.3% (2022) to ~1.0% in 2026, with gross and EBITDA margins also down meaningfully versus 2021–2023 levels. The result is a business showing good scale and top-line resilience, but with heightened volatility and much thinner earnings power recently.

Balance Sheet

Leverage is moderate but elevated versus earlier years. Debt-to-equity improved to ~0.83 in 2026 from ~1.01 in 2023, though it remains well above the ~0.49 level seen in 2021, reflecting a higher debt load over time. Equity has grown (to ~$4.8B in 2026), providing balance-sheet support, but returns on equity have fallen sharply to ~1.3% in 2026 (down from ~19–20% in 2021–2022), which signals weaker profitability relative to the capital base and reduces financial flexibility if margins remain pressured.

Cash Flow

Cash generation is a relative strength. Operating cash flow rose to ~$1.06B in 2026 (up from ~$0.84B in 2024), and free cash flow increased to ~$679M with a strong ~42.7% growth rate in the latest annual period. Free cash flow has also consistently remained positive across the years provided, supporting debt service and reinvestment capacity. A key watch-out is that earnings have dropped far faster than cash flow recently (2026 net income is much lower than prior years), implying a wider gap between reported profits and cash generation that warrants monitoring.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.14B	5.72B	6.79B	6.53B	4.74B
Gross Profit	964.95M	1.28B	1.65B	1.53B	1.24B
EBITDA	922.30M	1.01B	1.48B	1.41B	1.20B
Net Income	62.80M	278.88M	647.73M	737.69M	650.91M
Balance Sheet
Total Assets	10.30B	10.07B	11.06B	9.20B	6.13B
Cash, Cash Equivalents and Short-Term Investments	88.67M	75.97M	126.50M	127.02M	68.91M
Total Debt	4.16B	4.26B	4.64B	3.58B	1.62B
Total Liabilities	5.49B	5.61B	6.37B	5.31B	2.79B
Stockholders Equity	4.74B	4.38B	4.61B	3.81B	3.28B
Cash Flow
Free Cash Flow	679.23M	506.81M	342.26M	420.94M	430.02M
Operating Cash Flow	1.06B	839.29M	899.26M	813.74M	704.42M
Investing Cash Flow	-720.28M	-498.90M	-1.68B	-2.42B	-490.26M
Financing Cash Flow	-337.89M	-399.56M	876.29M	1.68B	-221.36M

Darling Ingredients Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAR, the sentiment is Positive. The current price of 56.91 is above the 20-day moving average (MA) of 53.44, above the 50-day MA of 47.68, and above the 200-day MA of 37.29, indicating a bullish trend. The MACD of 2.20 indicates Positive momentum. The RSI at 73.35 is Negative, neither overbought nor oversold. The STOCH value of 71.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAR.

Darling Ingredients Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PPC	74 Outperform	$8.87B	8.73	30.72%	―	1.81%	24.67%
INGR	74 Outperform	$7.12B	9.71	17.25%	2.86%	-3.83%	-2.04%
LW	65 Neutral	$5.68B	31.72	22.69%	3.37%	2.35%	9.61%
DAR	64 Neutral	$9.03B	94.10	1.36%	―	-0.83%	-58.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BRBR	57 Neutral	$2.17B	18.24	-47.89%	―	16.05%	-10.17%

Darling Ingredients Corporate Events

Darling Ingredients Announces Board Transition and New Director

On February 25, 2026, Darling Ingredients announced that long-time director Gary W. Mize plans to retire from its board at the company’s 2026 Annual Meeting of Stockholders, where he will step down as Lead Director and Chairman of the Nominating and Corporate Governance Committee after a decade of service that helped drive the company’s global agribusiness expansion. The same day, the board elected retired Cargill executive Robert Aspell as an independent director and Audit Committee member, expanding the board to 11 seats and adding deep international agribusiness, supply chain and M&A experience that is expected to strengthen strategic oversight and support Darling’s growth ambitions and shareholder value focus.

Mr. Aspell will receive standard non-employee director compensation, including cash retainers and restricted stock units, and enter into the company’s customary indemnification agreement, underscoring that his appointment follows standard governance practices. Darling’s leadership highlighted that the transition balances continuity with fresh global expertise, signaling continued emphasis on risk management, international expansion and disciplined governance as the company advances its position in the global food, agriculture and renewable energy value chains.

The most recent analyst rating on (DAR) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Darling Ingredients stock, see the DAR Stock Forecast page.

Darling Ingredients Forms Joint Venture with Tessenderlo

On December 10, 2025, Darling Ingredients Inc. announced a definitive agreement with Tessenderlo Group to form a joint venture, combining their collagen and gelatin business segments into a new company, NewCo Collagen LLC. Darling will hold an 85% stake, while Tessenderlo will hold 15%, with expected annual revenue of $1.5 billion. The venture aims to capitalize on the growing collagen market, leveraging synergies and expanding the Nextida product portfolio. The transaction, pending regulatory approvals, is expected to close in 2026, enhancing growth opportunities and shareholder value for Darling Ingredients.

The most recent analyst rating on (DAR) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Darling Ingredients stock, see the DAR Stock Forecast page.