Darling Ingredients (DAR) AI Stock Analysis

• Market Cap: $4.99B
• Dividend Yield: N/A
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): 48.4
• Beta (1Y): 0.78
• Revenue Growth: -6.25%
• EPS Growth: -71.35%
• Country: US
• Employees: 15,500
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Packaged Foods
• EPS (TTM): 0.08
• Shares Outstanding: 158,185,900
• 10 Day Avg. Volume: 2,768,991
• 30 Day Avg. Volume: 2,312,061
• 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: 2.06
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 11.27
• Enterprise Value/Ebitda: 12.72
• 1Y Price Target: $46.33
• Price Target Upside: 44.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 66 Neutral
• Price Target: $36.00 ▲(12.36% Upside)

Darling Ingredients' overall stock score reflects stable financial performance and strategic advancements, tempered by valuation concerns and mixed technical indicators. The company's strong cash flow and financial stability are significant strengths, while the high P/E ratio and challenges in the renewable segment present risks.

Positive Factors

Feedstock Prices

Feedstock prices continue to improve, and analysts' positive outlook for 2026+ remains unchanged as DAR has the greatest leverage to recent favorable biofuels policy actions.

Future Profit Trajectory

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

Negative Factors

EBITDA Guidance

DAR lowered 2025 EBITDA guidance to $1.05-1.10bn given slower-than-expected pace of operating environment improvement.

Renewable Fuels Market Uncertainty

The company's Q2 results missed consensus estimates, leading to a downgrade to Neutral and a lowered full-year 2025 outlook due to uncertainty in the renewable fuels market.

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 stable financial performance with healthy margins, strong cash generation, and solid financial stability. The company efficiently manages its leverage and cash flow despite recent revenue and net income margin declines, indicating room for improvement in revenue growth and profitability.

Income Statement

Darling Ingredients has shown a mixed revenue performance with a slight decline in the most recent TTM period. The gross profit margin for TTM is approximately 16.0%, which indicates moderate profitability. The net profit margin for TTM stands at 3.0%, reflecting challenges in achieving high profitability. However, the company maintains a healthy EBITDA margin of 14.2%, showcasing operational efficiency. Overall, the income statement reflects stable margins, though revenue has declined recently.

Balance Sheet

The balance sheet reveals a strong equity base with a debt-to-equity ratio of approximately 1.02, indicating a balanced approach to leverage. Return on equity for the TTM is around 4.2%, which is modest and suggests room for improvement in generating returns for shareholders. The equity ratio stands at a solid 79.0%, highlighting financial stability. The company's leverage is managed, but further enhancement in ROE could be beneficial.

Cash Flow

Darling Ingredients shows a robust operating cash flow to net income ratio of 4.8, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is also strong at 3.0, reflecting effective cash management. However, free cash flow growth is moderate, with a recent increase of 3.1%. Overall, the company demonstrates strong cash flow management, but moderate growth in free cash flow could be improved.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.67B	5.72B	6.79B	6.53B	4.74B	3.57B
Gross Profit	910.59M	1.28B	1.65B	1.53B	1.24B	883.11M
EBITDA	806.87M	1.01B	1.48B	1.09B	1.20B	776.48M
Net Income	171.56M	278.88M	647.73M	737.69M	650.91M	296.82M
Balance Sheet
Total Assets	5.15B	10.07B	11.06B	9.20B	6.13B	5.61B
Cash, Cash Equivalents and Short-Term Investments	81.47M	75.97M	126.50M	127.02M	68.91M	81.62M
Total Debt	4.14B	4.26B	4.64B	3.58B	1.62B	1.66B
Total Liabilities	5.50B	5.61B	6.37B	5.31B	2.79B	2.66B
Stockholders Equity	4.07B	4.38B	4.61B	3.81B	3.28B	2.89B
Cash Flow
Free Cash Flow	522.65M	506.81M	342.26M	420.94M	430.02M	340.73M
Operating Cash Flow	824.34M	839.29M	899.26M	813.74M	704.42M	624.65M
Investing Cash Flow	-258.60M	-498.90M	-1.68B	-2.42B	-490.26M	-310.63M
Financing Cash Flow	-633.56M	-399.56M	876.29M	1.68B	-221.36M	-306.99M

Darling Ingredients Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 32.04 is below the 20-day moving average (MA) of 32.26, below the 50-day MA of 34.36, and below the 200-day MA of 34.48, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 42.46 is Neutral, neither overbought nor oversold. The STOCH value of 27.42 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
PPC	79 Outperform	$10.60B	8.38	33.13%	―	2.06%	63.27%
BRFS	78 Outperform	$6.10B	9.45	21.17%	2.40%	-1.19%	78.79%
INGR	69 Neutral	$8.21B	12.48	17.11%	2.50%	-5.16%	4.95%
LW	69 Neutral	$7.77B	22.59	20.26%	2.64%	-0.25%	-49.73%
DAR	66 Neutral	$4.99B	48.39	2.32%	―	-6.25%	-71.35%
Sector *	63 Neutral	$20.49B	14.78	-2.88%	3.11%	1.86%	-5.76%
BRBR	59 Neutral	$5.38B	24.40	-190.65%	―	16.27%	5.13%

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.

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.

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.

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.