Darling Ingredients Inc.

Valuation Analysis

About the Company

Darling Ingredients Inc. develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. The Feed Ingredients segment collects and processes animal by-products into non-food grade oils and protein meals; bakery residuals into cookie meal used in poultry and swine rations; used cooking oil into non-food grade fats; and porcine and bovine blood into blood plasma powder and hemoglobin. This segment is also involved in the processing of selected portions of slaughtered animals into pet food, as well as of cattle hides and hog skins; production of organic fertilizers; rearing and processing of black soldier fly larvae into specialty proteins and fats for use in animal feed and pet food; and

Darling Ingredients Inc. Stock at a Glance

Darling Ingredients Inc. (DAR) is currently trading at $56.99 with a market capitalization of $9.1B. The trailing P/E ratio stands at 41.3x, with a forward P/E of 11.48x. The 52-week range spans from $29.15 to $66.02; the current price is 13.7% below the yearly high. Year-over-year revenue growth stands at +12.3%. The net profit margin stands at 3.54%.

💰 Dividend

Darling Ingredients Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

12 analysts rate Darling Ingredients Inc. (DAR) on consensus: Strong Buy. The average price target is $76.42, implying +34.09% from the current price. Analyst price targets range from $70.00 to $85.00.

Darling Ingredients Inc.: The Investment Case in Detail

Darling Ingredients Inc. (DAR) operates in the Consumer Defensive — specifically Packaged Foods — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 12.3% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Wall Street consensus sits at Strong Buy with an average price target implying roughly 34.09% upside from current levels — analyst sentiment is firmly constructive.

The Bear Case

With a net margin of just 3.54%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

At a PEG of 4.31, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The forward P/E of 11.48x is meaningfully below the trailing 41.3x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 34.09% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to market-like volatility.

Trading Data

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