Darling Ingredients (DAR) AI Stock Analysis

• Market Cap: $5.79B
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 54.8
• Beta (1Y): 0.82
• Revenue Growth: -0.83%
• EPS Growth: -58.55%
• Country: US
• Employees: 15,500
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.12
• Shares Outstanding: 158,186,080
• 10 Day Avg. Volume: 2,073,225
• 30 Day Avg. Volume: 2,145,776
• PEG Ratio: -0.34
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 10.55
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 7.54
• Enterprise Value/Ebitda: 11.66
• 1Y Price Target: $48.89
• Price Target Upside: 33.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.38
• Revenue Forecast (FY): $5.96B

• Rating: 69 Neutral
• Price Target: $38.00 ▲(3.80% Upside)

Darling Ingredients' overall score reflects a mix of moderate financial health and strong technical indicators. The strategic joint venture and positive earnings call elements are offset by valuation concerns and challenges in the renewables market. The company's ability to leverage its core strengths while addressing debt and profitability issues will be crucial for future performance.

Positive Factors

Strategic Joint Venture

The joint venture with Tessenderlo to form a new company in the collagen market enhances growth opportunities and shareholder value, leveraging synergies and expanding product portfolio.

Strong Core Ingredients Business

Strong performance in the core ingredients business indicates effective execution and high demand, supporting long-term revenue stability and growth.

Improvement in Feed Segment

Improvement in the Feed segment reflects strong domestic demand and favorable policies, contributing to sustained profitability and market position.

Negative Factors

Challenges in Renewables Market

Challenges in the renewables market, including negative EBITDA, highlight volatility and regulatory uncertainties, impacting profitability and growth potential.

High Debt Levels

High debt levels can strain cash flow and limit financial flexibility, posing risks to long-term operational stability and investment capacity.

Decline in Free Cash Flow

Declining free cash flow growth indicates potential liquidity concerns and reduced cash flow efficiency, affecting the company's ability to fund operations and investments.

Darling Ingredients Business Overview & Revenue Model

Company Description

Darling Ingredients Inc. is a global leader in the sustainable food and fuel production industry, primarily engaged in converting edible and inedible by-products into valuable ingredients. The company operates through various segments, including Rendering, Ingredients, and Fuel, focusing on the recovery of nutrients from animal by-products and the production of renewable fuels. Darling Ingredients offers a diverse range of products, including protein meals, fats, and gelatin, which serve various industries, including food, pet food, and pharmaceuticals.

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

Darling Ingredients shows strong revenue growth and efficient cash flow management. However, declining profit margins and reduced return on equity highlight challenges in operational efficiency and profitability. The company's leverage remains manageable, supporting long-term financial stability.

Income Statement

Darling Ingredients has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 20.76% and a net profit margin of 1.85%, which are lower than previous years, reflecting challenges in maintaining profitability. The revenue growth rate of 48% in the TTM period is strong, but the EBIT and EBITDA margins have declined, suggesting increased operational costs or pricing pressures.

Balance Sheet

The company's balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.99 in the TTM period, indicating manageable leverage. The return on equity (ROE) has decreased to 2.39%, reflecting reduced profitability. However, the equity ratio remains robust, suggesting a solid capital structure.

Cash Flow

Cash flow analysis shows a positive trajectory with a free cash flow growth rate of 5.03% in the TTM period. The operating cash flow to net income ratio is strong at 3.11, indicating efficient cash generation relative to net income. The free cash flow to net income ratio of 0.67 suggests a healthy conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.84B	5.72B	6.79B	6.53B	4.74B	3.57B
Gross Profit	1.25B	1.28B	1.65B	1.53B	1.24B	883.11M
EBITDA	810.19M	1.01B	1.48B	1.41B	1.20B	776.48M
Net Income	107.77M	278.88M	647.73M	737.69M	650.91M	296.82M
Balance Sheet
Total Assets	10.45B	10.07B	11.06B	9.20B	6.13B	5.61B
Cash, Cash Equivalents and Short-Term Investments	91.49M	75.97M	126.50M	127.02M	68.91M	81.62M
Total Debt	4.34B	4.26B	4.64B	3.58B	1.62B	1.66B
Total Liabilities	5.68B	5.61B	6.37B	5.31B	2.79B	2.66B
Stockholders Equity	4.69B	4.38B	4.61B	3.81B	3.28B	2.89B
Cash Flow
Free Cash Flow	476.11M	506.81M	342.26M	420.94M	430.02M	340.73M
Operating Cash Flow	773.50M	839.29M	899.26M	813.74M	704.42M	624.65M
Investing Cash Flow	-495.80M	-498.90M	-1.68B	-2.42B	-490.26M	-310.63M
Financing Cash Flow	-332.23M	-399.56M	876.29M	1.68B	-221.36M	-306.99M

Darling Ingredients Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 36.61 is above the 20-day moving average (MA) of 35.47, above the 50-day MA of 33.59, and above the 200-day MA of 33.03, indicating a bullish trend. The MACD of 0.80 indicates Positive momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 48.40 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
BRFS	79 Outperform	―	―	―	―	-1.19%	78.79%
PPC	73 Outperform	$9.49B	7.74	31.76%	―	1.81%	24.67%
DAR	69 Neutral	$5.79B	54.79	2.33%	―	-0.83%	-58.55%
BRBR	67 Neutral	$3.82B	19.04	―	―	16.05%	-10.17%
INGR	65 Neutral	$7.14B	11.20	16.10%	2.86%	-3.83%	-2.04%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LW	60 Neutral	$8.31B	28.64	16.22%	2.48%	<0.01%	-51.18%

Darling Ingredients Corporate Events

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.

Darling Ingredients Announces Executive VP’s Upcoming Retirement

On November 10, 2025, Darling Ingredients Inc. announced the upcoming retirement of John F. Sterling, the Executive Vice President, General Counsel and Secretary, effective March 31, 2027. Sterling will continue in his current role until January 4, 2026, after which Nick Kemphaus will take over his responsibilities. Sterling will remain in an advisory role until his retirement, with a salary adjustment and exclusion from incentive programs. Kemphaus, with over 20 years of legal experience, has been with the company since 2012, handling various legal and regulatory matters.

Darling Ingredients COO Matt Jansen Departs Role

On September 26, 2025, Matt Jansen, the Chief Operating Officer for North America at Darling Ingredients, departed from his role. His departure qualifies him for severance benefits under the Senior Executive Termination Benefits Agreement, contingent upon his compliance with specific terms, as outlined in the company’s 2025 Proxy Statement.