Darling Ingredients (DAR) AI Stock Analysis

• Market Cap: $5.28B
• Dividend Yield: N/A
• Average Volume (3M): 2.65M
• Price to Earnings (P/E): 50.0
• Beta (1Y): 0.77
• 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: 2,620,327
• 30 Day Avg. Volume: 2,648,734
• 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: 1.79
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 7.54
• Enterprise Value/Ebitda: 11.66
• 1Y Price Target: $47.67
• Price Target Upside: 42.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.39
• Revenue Forecast (FY): $5.95B

• Rating: 66 Neutral
• Price Target: $35.00 ▲(4.85% Upside)

Darling Ingredients' overall stock score reflects strong revenue growth and efficient cash flow management, but is tempered by declining profit margins and high valuation. The earnings call provided a mixed outlook, with strong performance in core segments offset by challenges in the renewables market and high debt levels.

Positive Factors

Core Ingredients Business Performance

The strong performance in the core ingredients business indicates effective strategic execution and robust demand, enhancing long-term growth prospects.

Positive Outlook on Production Tax Credits

The anticipated generation of production tax credits provides a financial boost and supports future profitability, reinforcing the company's strategic positioning.

Improvement in Feed Segment

Improved performance in the Feed segment reflects strong domestic demand and favorable policies, contributing to sustainable revenue growth.

Negative Factors

Challenges in Renewables Market

Ongoing challenges in the renewables market, particularly in the DGD segment, could hinder profitability and growth in this strategic area.

High Debt Levels

High debt levels may strain financial resources and limit flexibility, posing a risk to long-term financial stability and investment capacity.

Weakness in Fuel Segment Excluding DGD

The decline in the fuel segment's performance, excluding DGD, suggests operational challenges and potential revenue pressures in this area.

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 primarily through the sale of its various products, which are categorized into several key segments. The largest revenue stream comes from the sale of protein meals and animal fats used in livestock feed and pet food. Additionally, the company earns income from the processing of food waste and by-products, converting them into usable materials for various industries. Darling also benefits from partnerships with food manufacturers and agricultural companies that supply raw materials for processing. The growing demand for sustainable and renewable products further enhances its revenue potential, particularly in the bioenergy sector, where it produces renewable diesel and other biofuels from waste materials.

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: 33.38
• 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 33.38 is below the 20-day moving average (MA) of 33.40, above the 50-day MA of 32.37, and above the 200-day MA of 33.26, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 39.02 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	72 Outperform	$9.22B	7.52	31.76%	―	1.81%	24.67%
DAR	66 Neutral	$5.28B	49.96	2.33%	―	-0.83%	-58.55%
INGR	65 Neutral	$6.84B	10.73	16.10%	2.99%	-3.83%	-2.04%
BRBR	63 Neutral	$3.56B	17.74	―	―	16.05%	-10.17%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LW	60 Neutral	$8.04B	27.69	16.22%	2.57%	<0.01%	-51.18%

Darling Ingredients Corporate Events

Darling Ingredients Reports Strong Q3 2025 Results

Darling Ingredients Inc., a leader in transforming animal and food industry by-products into sustainable ingredients, operates in the renewable energy sector and is known for its significant contribution to global collagen and renewable energy production.

Darling Ingredients’ Earnings Call: Mixed Results Amid Strong Core Performance

The recent earnings call for Darling Ingredients painted a mixed picture for the company. While the core ingredients business showed robust performance, particularly in the Feed and Food segments, the renewables market and Diamond Green Diesel (DGD) faced significant challenges, impacting overall profitability. Despite a positive outlook on production tax credits, the company’s debt levels remain high.

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.

The most recent analyst rating on (DAR) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Darling Ingredients stock, see the DAR Stock Forecast page.