Darling Ingredients (DAR) AI Stock Analysis

• Market Cap: $5.83B
• Dividend Yield: N/A
• Average Volume (3M): 2.89M
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.78
• Revenue Growth: -6.23%
• EPS Growth: -71.35%
• Country: US
• Employees: 15,500
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Packaged Foods
• EPS (TTM): 0.08
• Shares Outstanding: 158,158,840
• 10 Day Avg. Volume: 1,984,754
• 30 Day Avg. Volume: 2,894,313
• PEG Ratio: -0.87
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.54
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 7.02
• Enterprise Value/Ebitda: 3.18
• 1Y Price Target: $45.88
• Price Target Upside: 30.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: $39.00 ▲(10.83%Upside)

Darling Ingredients scores well due to its strong financial position and strategic initiatives. However, high valuation concerns and challenges in the renewable fuel segment temper the overall outlook.

Positive Factors

Regulatory Changes

Updated U.S. biofuels policy will drive materially improved profit trajectory for DAR in 2026.

Stock Valuation

Shares currently trade at less than 7.0x our 2026E EBITDA vs. historical average over 8x, offering an attractive entry point.

Negative Factors

Earnings Performance

Weak DGD earnings have led to a reduction in expected EBITDA for 2Q25 and FY25.

Market Confidence

The market is unlikely to give Darling Ingredients the benefit of doubt on guidance due to limited transparency on the first quarter miss and an inconsistent track record on guidance.

Operational Challenges

Industry RD margins remained pressured in 2Q and are off to a slow start in 3Q.

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 the collection and processing of animal by-products and residuals from the food processing industry. The company transforms these materials into a variety of products such as gelatin, fats, proteins, and renewable energy. Key revenue streams include sales of these ingredients for use in food, pet food, animal feed, and biofuel production. Additionally, Darling Ingredients benefits from strategic partnerships, such as its joint venture with Valero Energy Corporation in the production of renewable diesel, which significantly contributes to its earnings.

Darling Ingredients Financial Statement Overview

Summary

Darling Ingredients demonstrates a strong financial position with zero debt and robust cash flow management. However, challenges in revenue growth and declining profit margins slightly offset these strengths.

Income Statement

Darling Ingredients shows a strong revenue base with a slight decline in the most recent year, likely due to market fluctuations. Gross Profit Margin remains high at 100%, suggesting efficient cost management. However, the decreasing Net Income and EBIT margins indicate pressures on profitability. The Revenue Growth Rate has fluctuated, with a notable decrease recently, which could signal market challenges.

Balance Sheet

The company exhibits a robust financial position with zero debt in the latest period, drastically improving its Debt-to-Equity Ratio. The Return on Equity remains healthy, reflecting strong shareholder returns. The Equity Ratio is solid, indicating financial stability and a strong asset base. This positions the company well against potential economic changes.

Cash Flow

Darling Ingredients maintains a strong cash flow with consistent operating cash flow exceeding net income, indicating good cash conversion. The Free Cash Flow has shown growth, albeit with some fluctuations, suggesting efficient capital expenditure management. The Free Cash Flow to Net Income Ratio is strong, supporting the company's reinvestment and dividend capabilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.72B	6.79B	6.53B	4.74B	3.57B
Gross Profit	1.28B	1.65B	1.53B	1.24B	883.11M
EBITDA	1.01B	1.48B	1.09B	1.20B	776.48M
Net Income	278.88M	647.73M	737.69M	650.91M	296.82M
Balance Sheet
Total Assets	10.07B	11.06B	9.20B	6.13B	5.61B
Cash, Cash Equivalents and Short-Term Investments	75.97M	126.50M	127.02M	68.91M	81.62M
Total Debt	4.26B	4.64B	3.58B	1.62B	1.66B
Total Liabilities	5.61B	6.37B	5.31B	2.79B	2.66B
Stockholders Equity	4.38B	4.61B	3.81B	3.28B	2.89B
Cash Flow
Free Cash Flow	506.81M	342.26M	420.94M	430.02M	340.73M
Operating Cash Flow	839.29M	899.26M	813.74M	704.42M	624.65M
Investing Cash Flow	-498.90M	-1.68B	-2.42B	-490.26M	-310.63M
Financing Cash Flow	-399.56M	876.29M	1.68B	-221.36M	-306.99M

Darling Ingredients Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 35.19 is below the 20-day moving average (MA) of 37.18, below the 50-day MA of 35.26, and below the 200-day MA of 35.39, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 43.25 is Neutral, neither overbought nor oversold. The STOCH value of 47.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAR.

Darling Ingredients Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRFS	78 Outperform	$6.58B	9.38	23.47%	2.23%	3.82%	―
INGR	77 Outperform	$8.63B	14.16	16.31%	2.39%	-6.88%	-4.93%
POST	72 Outperform	$5.99B	19.39	9.15%	―	1.48%	9.36%
DAR	71 Outperform	$5.83B	34.75	3.79%	―	-6.23%	-71.35%
NOMD	68 Neutral	$2.79B	12.00	8.59%	0.19%	-0.24%	26.74%
LW	68 Neutral	$8.07B	22.88	20.26%	2.49%	-2.49%	-65.96%
Sector *	61 Neutral	HK$21.05B	12.25	0.81%	4.52%	2.72%	-47.45%

Darling Ingredients Corporate Events

Darling Ingredients Updates Bylaws for Efficiency

On July 7, 2025, Darling Ingredients Inc. amended and restated its Bylaws to update procedural requirements for stockholders to take action without a meeting. This change is aimed at streamlining governance processes, potentially impacting the company’s operational efficiency and stakeholder engagement.

The most recent analyst rating on (DAR) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Darling Ingredients stock, see the DAR Stock Forecast page.

Darling Ingredients Issues €750M in Senior Notes

On June 24, 2025, Darling Global Finance B.V., a subsidiary of Darling Ingredients Inc., issued €750 million in senior notes due 2032, with a 4.5% interest rate. This issuance, alongside a new credit agreement, refinanced existing debt, extended maturities, and redeemed €515 million of senior notes due 2026. The refinancing aims to optimize Darling’s financial structure, potentially enhancing its market position and operational flexibility.

The most recent analyst rating on (DAR) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Darling Ingredients stock, see the DAR Stock Forecast page.

Darling Ingredients Announces €750M Senior Notes Offering

On June 18, 2025, Darling Ingredients Inc. announced the pricing of a €750 million offering of 4.5% senior notes due 2032 by its subsidiary, Darling Global Finance B.V. The proceeds will be used to redeem existing senior notes and repay some of the company’s debt, allowing Darling to maintain its debt cost while extending the term of the notes. The offering is expected to close around June 24, 2025, subject to customary conditions, and is part of Darling’s strategy to optimize its financial structure.

The most recent analyst rating on (DAR) stock is a Buy with a $69.00 price target. To see the full list of analyst forecasts on Darling Ingredients stock, see the DAR Stock Forecast page.

Darling Ingredients Launches €750M Senior Notes Offering

On June 16, 2025, Darling Ingredients Inc. announced that its subsidiary, Darling Global Finance B.V., launched an offering of €750 million in senior notes, subject to market conditions. The company also plans to amend its credit agreement to a Third Amended and Restated Credit Agreement. The proceeds from the notes will be used to redeem existing senior notes and repay certain credit facilities, reflecting Darling’s strategic financial restructuring efforts.

The most recent analyst rating on (DAR) stock is a Buy with a $69.00 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 May 12, 2025, Darling Ingredients Inc. announced a non-binding term sheet with Tessenderlo Group to form a joint venture, Nextida, combining their collagen and gelatin businesses. Darling will hold an 85% stake, and Tessenderlo 15%. This strategic partnership aims to create a leading company in the collagen-based health, wellness, and nutrition sectors, with expected annual revenue of $1.5 billion. The venture is anticipated to close in 2026, subject to customary conditions and regulatory approvals, and is expected to enhance product development and shareholder value while expanding market reach.

Darling Ingredients Holds Annual Stockholder Meeting

At the annual meeting held on May 7, 2025, Darling Ingredients Inc. stockholders elected the Board of Directors and voted on two proposals. The proposals included ratifying KPMG LLP as the independent registered public accountant for the fiscal year ending January 3, 2026, and approving the company’s executive compensation. These decisions reflect the company’s ongoing commitment to maintaining strong governance and financial oversight, which could impact its operational efficiency and stakeholder confidence.