Darling Ingredients Inc. (DAR) Stock Analysis
Verdict: BUY
Renewable fuel margin recovery and strong FCF drive cheap valuation (EV/EBITDA 5.4x), but volatile commodity fats present earnings risk.
Investment score: 67/100
Analysis as of
Is Darling Ingredients Inc. stock worth reviewing? The TradeMates thesis
TradeMates views DAR as an attractive value opportunity trading at 5.43x EV/EBITDA with a 10.0% FCF yield, supported by recovering renewable fuel margins and active debt reduction.
7-factor investment score
- Valuation: 82/100 (weight 20%)
- Financial Health: 70/100 (weight 15%)
- Technical Momentum: 55/100 (weight 15%)
- Earnings Quality: 60/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 85/100 (weight 10%)
- Risk-Adjusted Return: 72/100 (weight 15%)
Darling Ingredients Inc. opportunities and risks
What speaks for DAR
- Deep Valuation Discount to Ag-Processing Peers
What speaks against DAR
- Regulatory Policy and Biofuel Mandate Changes
Peers and competitors
- ADM
- BG
- INGR
- BWEL
- CHSCP
- ALCO
- LMNR
- GGROU
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| DAR | 10.4x | 1.3x | 5.4x | 25.4% | 12.5% | 10.0% |
| ADM | 21.1x | 0.5x | 9.6x | 6.9% | 2.2% | 4.5% |
| BG | 16.2x | 0.2x | 11.6x | 5.1% | 1.2% | -14.3% |
| INGR | 10.4x | 0.8x | 6.5x | 23.7% | 8.2% | 10.7% |
| BWEL | 15.1x | 1.1x | 7.4x | 14.7% | 7.4% | 20.1% |
| CHSCP | 0.0x | 0.0x | 2.3x | 3.4% | 1.5% | 508.0% |
| Peer median | 15.1x | 0.5x | 7.4x | 6.9% | 2.2% | 10.7% |
Frequently asked questions about Darling Ingredients Inc. (DAR)
Is DAR stock a good investment?
The TradeMates model rates Darling Ingredients Inc. as BUY with an investment score of 67/100. TradeMates views DAR as an attractive value opportunity trading at 5.43x EV/EBITDA with a 10.0% FCF yield, supported by recovering renewable fuel margins and active debt reduction. This is algorithmic model output, not personal investment advice.
Is DAR stock a buy?
The TradeMates model verdict for DAR is BUY with an investment score of 67/100. Treat this as a model signal to review, not a personal buy recommendation.