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Darling Ingredients
(NYSE:DAR)
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Rating:67Neutral
Price Target:
$59.00
▲(1.81% Upside)
Action:Reiterated
Date:05/14/26
DAR scores a 67 primarily due to stable-but-cooled financial performance (compressed margins/returns and only modest growth) balanced by clear near-term operational momentum and constructive guidance from the latest earnings call. Technicals are supportive with an established uptrend, while valuation appears reasonable (P/E ~19) but lacks dividend support.
Positive Factors
Vertical integration & diversified end markets
Darling's vertically integrated model and multi‑market exposure (feed, food, oleochemicals, collagen, renewable fuels) provide durable revenue diversification and scale benefits. This reduces reliance on any single cyclical market, allows margin capture across value chains, and supports cross‑selling and optimization of feedstocks over the medium term.
Negative Factors
Elevated leverage
Net debt near $4B and leverage metrics above historical norms constrain financial flexibility. Elevated leverage increases vulnerability to commodity swings or operational disruptions, limits capacity for large opportunistic investments or buybacks, and makes progress on the stated ~$3B debt target a key execution risk over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration & diversified end markets
Darling's vertically integrated model and multi‑market exposure (feed, food, oleochemicals, collagen, renewable fuels) provide durable revenue diversification and scale benefits. This reduces reliance on any single cyclical market, allows margin capture across value chains, and supports cross‑selling and optimization of feedstocks over the medium term.
Read all positive factors
Darling Ingredients Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures what each segment contributes to the company’s bottom line after operating costs, highlighting which businesses are truly profitable, where management is investing capital, and whether reported sales translate into sustainable earnings.
Measures what each segment contributes to the company’s bottom line after operating costs, highlighting which businesses are truly profitable, where management is investing capital, and whether reported sales translate into sustainable earnings.
Data provided by:
The Fly
The FlyDarling Ingredients (DAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.98B
Dividend YieldN/A
Average Volume (3M)2.19M
Price to Earnings (P/E)40.1
Beta (1Y)0.59
Revenue Growth11.11%
EPS Growth30.83%
CountryUS
Employees15,500
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)1.41
Shares Outstanding158,927,370
10 Day Avg. Volume2,042,525
30 Day Avg. Volume2,192,006
Financial Highlights & Ratios
PEG Ratio-1.23
Price to Book (P/B)1.26
Price to Sales (P/S)0.97
P/FCF Ratio8.78
Enterprise Value/Market Cap1.42
Enterprise Value/Revenue2.02
Enterprise Value/Gross Profit12.07
Enterprise Value/Ebitda12.80
Forecast
1Y Price Target
$74.30Price Target Upside28.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)4.48
Revenue Forecast (FY)$6.76B
Darling Ingredients Business Overview & Revenue Model
Company Description
Darling Ingredients Inc. specializes in the development and production of natural ingredients sourced from various organic bio-nutrients, encompassing both edible and inedible materials. The company's operations are structured into three primary s...
How the Company Makes Money
Darling Ingredients makes money primarily by collecting, processing, and selling products derived from organic residuals into higher-value markets. Revenue is generated through: (1) Rendering and ingredient sales: Darling collects animal by-produc...
Darling Ingredients Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call reflects a clear positive operational and financial inflection: material year-over-year EBITDA and sales growth, margin expansion, return to net profitability, strong DGD performance, and constructive policy (RVO) tailwinds. Headwinds include one-time accounting benefits at DGD ($97M LCM), higher net debt and leverage versus prior quarter, commodity/hedge accounting timing risks, and some sequential variability in core ingredients. Management reiterated focus on deleveraging toward a ~$3B debt target and maintained conservative guidance for core ingredients while noting strong momentum into Q2.Positive Updates
Strong Consolidated EBITDA and Margin Expansion
Combined adjusted EBITDA of $406.8M in Q1 2026, up ~107.6% year-over-year (Q1 2025: $196M) and up ~21.1% sequentially (Q4 2025: $336M). Consolidated gross margin improved to 26.1% from 22.6% a year ago (+3.5 percentage points) and from 25.1% last quarter (+1.0 pp).
Negative Updates
One-time Inventory Benefit at DGD
DGD results included a favorable lower-of-cost-or-market (LCM) inventory valuation adjustment of $97M at the DGD entity level; management stated this exhausts available LCM benefits and such benefits are not expected going forward.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Consolidated EBITDA and Margin Expansion
Combined adjusted EBITDA of $406.8M in Q1 2026, up ~107.6% year-over-year (Q1 2025: $196M) and up ~21.1% sequentially (Q4 2025: $336M). Consolidated gross margin improved to 26.1% from 22.6% a year ago (+3.5 percentage points) and from 25.1% last quarter (+1.0 pp).
Read all positive updates
Company Guidance
Darling guided Q2 core ingredients (non‑DGD) adjusted EBITDA of $260–$275 million and said Diamond Green Diesel (DGD) volumes are expected to be about 320 million gallons in Q2 (up from ~272M gallons sold in Q1), with management noting Q2 DGD results should be stronger than Q1 (Darling’s Q1 DGD EBITDA was $151.2M, roughly $1.11 per gallon); Q1 combined adjusted EBITDA was ~$407M (core ingredients ~$256M; Feed $169M; Food $81M; Fuel including DGD ~ $180M), total net sales $1.6B, gross margin 26.1%, raw material volume ~3.8M metric tons, capex in Q1 $95M, quarter‑end net debt ~ $4.0B (preliminary covenant leverage ~3.17x vs 2.9x YE, ~$1.1B revolver available) and company reiterated a 2026 effective tax rate of ~25% with about $60M of cash taxes expected for the remainder of the year while targeting further EBITDA growth, stronger cash flow and debt reduction toward a ~$3B debt goal.Darling Ingredients Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.31B | 6.14B | 5.72B | 6.79B | 6.53B | 4.74B |
| Gross Profit | 1.06B | 969.46M | 1.28B | 1.65B | 1.53B | 1.24B |
| EBITDA | 996.64M | 792.77M | 1.01B | 1.48B | 1.41B | 1.20B |
| Net Income | 223.28M | 62.80M | 278.88M | 647.73M | 737.69M | 650.91M |
Balance Sheet | ||||||
| Total Assets | 10.64B | 10.30B | 10.07B | 11.06B | 9.20B | 6.13B |
| Cash, Cash Equivalents and Short-Term Investments | 138.23M | 88.67M | 75.97M | 126.50M | 127.02M | 68.91M |
| Total Debt | 4.35B | 4.16B | 4.26B | 4.64B | 3.58B | 1.62B |
| Total Liabilities | 5.70B | 5.49B | 5.61B | 6.37B | 5.31B | 2.79B |
| Stockholders Equity | 4.88B | 4.74B | 4.38B | 4.61B | 3.81B | 3.28B |
Cash Flow | ||||||
| Free Cash Flow | 551.44M | 679.23M | 506.81M | 342.26M | 420.94M | 430.02M |
| Operating Cash Flow | 963.72M | 1.06B | 839.29M | 899.26M | 813.74M | 704.42M |
| Investing Cash Flow | -958.35M | -720.28M | -498.90M | -1.68B | -2.42B | -490.26M |
| Financing Cash Flow | 30.39M | -337.89M | -399.56M | 876.29M | 1.68B | -221.36M |
Darling Ingredients Technical Analysis
Positive
57.95
Price Trends
59.13
Negative
57.64
Negative
46.67
Positive
Market Momentum
-1.27
Negative
51.05
Neutral
84.67
Negative
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 57.95 is above the 20-day moving average (MA) of 55.67, below the 50-day MA of 59.13, and above the 200-day MA of 46.67, indicating a neutral trend. The MACD of -1.27 indicates Negative momentum. The RSI at 51.05 is Neutral, neither overbought nor oversold. The STOCH value of 84.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAR.
Darling Ingredients Risk Analysis
Darling Ingredients disclosed 52 risk factors in its most recent earnings report. Darling Ingredients reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Darling Ingredients Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $8.98B | 40.09 | 4.72% | ― | 11.11% | 30.83% | |
67 Neutral | $6.16B | 9.26 | 15.57% | 2.86% | -2.21% | 9.29% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $6.84B | 7.69 | 24.19% | ― | 3.30% | -26.64% | |
54 Neutral | $1.61B | 10.58 | -35.70% | ― | 6.37% | -40.20% | |
52 Neutral | $6.34B | 21.35 | 16.90% | 3.37% | 2.04% | -16.15% |
* Consumer Defensive Sector Average
DAR
Darling Ingredients
56.53
18.68
49.35%
PPC
Pilgrim's Pride
28.76
-14.48
-33.49%
INGR
Ingredion
97.62
-34.59
-26.16%
LW
Lamb Weston Holdings
45.91
-3.57
-7.22%
BRBR
BellRing Brands
13.86
-43.42
-75.80%
Darling Ingredients Corporate Events
Business Operations and StrategyStock Buyback
Darling Ingredients Highlights Growth in Renewable Fuels and Collagen
Positive
May 11, 2026
Darling Ingredients used its May 11, 2026 Investor Day to showcase its evolution into a global leader in rendering, collagen and renewable fuels, highlighting a multi-year transformation built on acquisitions that expanded its international footpr...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Darling Ingredients Shareholders Back Board, Pay and Auditor
Positive
May 8, 2026
At its annual meeting of stockholders held on May 7, 2026, Darling Ingredients Inc. shareholders elected all ten board nominees, including CEO Randall C. Stuewe and other incumbent directors, with substantial majorities despite some opposition to ...
Business Operations and StrategyFinancial Disclosures
Darling Ingredients Posts Strong Q1 2026 Profit Rebound
Positive
Apr 30, 2026
On April 30, 2026, Darling Ingredients reported a sharp turnaround for the first quarter of 2026, posting net income of $134.3 million, or $0.83 per diluted share, versus a net loss of $26.2 million a year earlier, as total net sales rose to $1.6 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.