Darling Ingredients (DAR) AI Stock Analysis

• Market Cap: $8.17B
• Dividend Yield: N/A
• Average Volume (3M): 2.59M
• Price to Earnings (P/E): 134.2
• Beta (1Y): 0.78
• 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: 158,186,080
• 10 Day Avg. Volume: 2,948,202
• 30 Day Avg. Volume: 2,589,523
• PEG Ratio: -1.22
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 10.07
• Enterprise Value/Ebitda: 14.75
• 1Y Price Target: $61.44
• Price Target Upside: 18.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.87
• Revenue Forecast (FY): $6.42B

• Rating: 63 Neutral
• Price Target: $51.00 ▼(-1.24% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

Overall score reflects moderate fundamentals with weakening margins and declining free cash flow as the primary constraints, partially offset by an improved leverage profile. Technicals are supportive but appear overbought, while valuation is the biggest negative due to the very high P/E. Earnings call commentary was mixed—strong core guidance and segment strength tempered by renewables/DGD volatility and high debt—while the collagen JV adds a modest positive catalyst.

Positive Factors

Diversified sustainable business model

A multi-segment model (Rendering, Ingredients, Fuel) captures value across food, pet food, pharma and renewable fuels. Durable feedstock relationships and broad end markets reduce single-market exposure, supporting steadier revenue streams and resilience to individual segment cycles.

Strong core ingredients performance and guidance

Management provided explicit multi-quarter EBITDA guidance for core ingredients, reflecting sustained demand for fats and proteins. Consistent margins and sizable segment EBITDA indicate a structurally stronger, predictable cash-generating core that can fund operations and strategic initiatives over the medium term.

Strategic collagen JV to scale gelatin/collagen business

The JV with Tessenderlo creates a scaled collagen/gelatin platform with meaningful revenue and synergies. Majority ownership preserves upside while consolidating market share, improving cost structure and product breadth—structural drivers for revenue diversification and higher long-term margins.

Negative Factors

Declining profitability margins

Sustained margin compression signals structural cost pressures or pricing constraints in core operations. Lower operating profitability erodes returns on equity and limits internal funding for investments, making growth or deleveraging initiatives more dependent on external improvements or efficiency programs.

Falling free cash flow

A persistent drop in free cash flow reduces the company's ability to pay down debt, fund capex, or invest in strategic expansions without raising external capital. Over several quarters this constrains financial flexibility and can increase vulnerability to industry shocks or funding cost rises.

High leverage and renewables volatility

Elevated net debt combined with DGD’s volatile renewables earnings (LCM hits and negative EBITDA episodes) raises leverage risk. Earnings swings from the fuel segment can impair deleveraging progress and force reliance on asset sales, PTC monetization, or incremental borrowing to meet strategic needs.

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

Moderate financial profile: revenue growth is positive but modest (TTM +2.49%) while profitability has weakened with declining gross, EBIT, and EBITDA margins. Leverage trends improved via a better debt-to-equity ratio, but ROE declined. Cash generation is solid relative to net income, yet free cash flow is falling (TTM -13.27%), creating a notable constraint.

Income Statement

Darling Ingredients shows moderate revenue growth in the TTM period with a 2.49% increase. However, the gross profit margin has slightly decreased over time, indicating potential cost pressures. The net profit margin has also declined, reflecting reduced profitability. EBIT and EBITDA margins have decreased compared to previous years, suggesting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved in the TTM period, indicating better leverage management. However, the return on equity has decreased, reflecting lower profitability. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Free cash flow has declined in the TTM period, with a negative growth rate of -13.27%, indicating cash flow challenges. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio has slightly decreased, indicating reduced cash flow efficiency.

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	0.00	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	3.94B	4.26B	4.64B	3.58B	1.62B
Total Liabilities	0.00	5.61B	6.37B	5.31B	2.79B
Stockholders Equity	0.00	4.38B	4.61B	3.81B	3.28B
Cash Flow
Free Cash Flow	0.00	506.81M	342.26M	420.94M	430.02M
Operating Cash Flow	0.00	839.29M	899.26M	813.74M	704.42M
Investing Cash Flow	0.00	-498.90M	-1.68B	-2.42B	-490.26M
Financing Cash Flow	0.00	-399.56M	876.29M	1.68B	-221.36M

Darling Ingredients Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 51.64 is above the 20-day moving average (MA) of 48.82, above the 50-day MA of 42.19, and above the 200-day MA of 35.77, indicating a bullish trend. The MACD of 2.91 indicates Negative momentum. The RSI at 86.49 is Negative, neither overbought nor oversold. The STOCH value of 82.96 is Negative, 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	$9.93B	9.21	27.33%	―	1.81%	24.67%
INGR	74 Outperform	$7.42B	10.38	18.05%	2.86%	-3.83%	-2.04%
LW	65 Neutral	$6.66B	16.98	23.16%	3.37%	2.35%	9.61%
DAR	63 Neutral	$8.17B	134.24	―	―	-0.83%	-58.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BRBR	57 Neutral	$2.15B	12.60	―	―	16.05%	-10.17%

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.

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.

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.

The most recent analyst rating on (DAR) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Darling Ingredients stock, see the DAR Stock Forecast page.