Darling Ingredients Inc.

Consumer Staples
Packaged Foods
www.darlingii.com

Earnings Score
Moat Score
Safety Score

Market Cap $5.24B
PE 19
Debt $4.19B
Cash $217.31M
EV $9.21B
FCF $506.82M

Earnings

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Sales & Net Margins

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Earnings	$278.88M
EBIT	$468.22M
ROE	6%
ROA	5%
FCF	$506.82M
Equity	$4.46B
Growth Stability	41%
PE	18.79
PEG	21.95
PB	1.17
P/FCF	10.34
P/S	0.92
Price/Cash	0.04
Debt/Equity	0.94
Debt/FCF	8.26
Net Margins	5%
Gross Margins	22%
Op. Margins	8%
Earnings CAGR	30%
Sales Growth YoY	-12%
Sales Growth QoQ	-0%
Sales CAGR	10%
FCF CAGR	2%
Equity CAGR	11%
Earnings Stability	0.54
Earnings Growth YoY	21%

Earnings Growth QoQ	501%
Earnings CAGR 5Y	1%
Sales CAGR 5Y	17%
FCF CAGR 5Y	9%
Equity CAGR 5Y	14%
Earnings CAGR 3Y	3%
Sales CAGR 3Y	3%
Equity CAGR 3Y	12%
Market Cap	$5.24B
Revenue	$5.72B
Assets	$10.07B
Total Debt	$4.19B
Cash	$217.31M
Shares Outstanding	159.36M
EV	9.21B
Earnings Score	84%
Moat Score	70%
Safety Score	51%
Final Score	68%
Working Capital	395.93M
Current Ratio	1.38
Gross Profit	$1.28B
Shares Growth 3y	-0%
Equity Growth QoQ	-4%
Equity Growth YoY	-5%

Assets & ROA

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Stockholders Equity & ROE

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Darling Ingredients Inc develops and manufactures sustainable ingredients for customers in the pharmaceutical, food, pet food, fuel, and fertilizer industries. It collects and transforms all aspects of animal by-product streams into ingredients, including gelatin, fats, proteins, pet food ingredients, fertilizers, and other specialty products. Also, the company recovers and converts used cooking oil and bakery remnants into feed and fuel ingredients. Darling has three primary business segments: feed ingredients (the majority of revenue), food ingredients, and fuel ingredients. It provides grease trap services for food businesses and sells various equipment for collecting and delivering cooking oil. The company derives the majority of its revenue from customers in North America.

SEC Filings

Direct access to Darling Ingredients Inc. (DAR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 28
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02
- 10-K Jan 01

Sector Comparison

How does Darling Ingredients Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Darling Ingredients Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 30%

Stability 54%

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Darling Ingredients Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Darling Ingredients Inc..

Years

Calculation mode

= $5.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$507M	$518M	$529M	$541M	$553M	$565M	$577M	$590M	$602M	$616M	$629M	$6.3B
DCF		$471M	$437M	$406M	$377M	$351M	$326M	$303M	$281M	$261M	$243M	$2.4B
Value	$5.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	2%	3%	4%	3%	9%	8%	14%	11%	10%	5%	5%
ROA	-	3%	3%	2%	9%	8%	14%	11%	9%	5%	5%
ROE	-	5%	6%	4%	12%	10%	19%	19%	14%	6%	6%

Bad Net Margins (4.88%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	12.19	12.88	22.22	564.07	4.5	3.49	8.22	13.1	8.26	8.26
Debt over Equity	1.02	0.87	0.75	0.73	0.67	0.53	0.45	0.89	0.96	0.94	0.94
Growth Stability	-	-	-	98%	100%	100%	100%	100%	100%	41%	41%

Bad Debt/FCF ratio (8.26)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.94)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (41%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	01/2016	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	0%	8%	-7%	-1%	6%	33%	38%	4%	-16%	17%
Earnings YoY growth	-	30%	26%	-21%	208%	-5%	119%	13%	-12%	-57%	1%
Equity YoY growth	-	5%	12%	0%	13%	12%	13%	16%	20%	-5%	14%
FCF YoY growth	-	-23%	-8%	-44%	-96%	11K%	25%	-2%	-19%	47%	9%