Last Updated: 15 Oct 2024
Executive Summary
Darling Ingredients Inc. (DAR) is a leading global provider of natural ingredients from edible and non-edible bio-nutrients. The company's products are used in a wide range of applications, including food, feed, pet food, and industrial products. DAR has a strong financial position with a market capitalization of $5.88 billion and an EBITDA of $912.96 million. The company's earnings per share (EPS) is $2.29, and its trailing price-to-earnings (PE) ratio is 16.04. DAR is currently trading at $36.74, which is below its 52-week high of $51.36 and above its 52-week low of $32.67.
Company Overview
Darling Ingredients Inc. was founded in 1881 and is headquartered in Irving, Texas. The company operates in over 100 countries and employs over 10,000 people. DAR's products are sold to a diverse customer base, including food manufacturers, feed producers, pet food companies, and industrial companies.
Fundamental Analysis
DAR's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.6% over the past five years. DAR's net income has also grown at a CAGR of 6.3% over the same period. The company's profit margin is 6.04%, and its operating margin is 4.95%. DAR has a strong balance sheet with $1.2 billion in cash and equivalents and $2.5 billion in total debt. The company's debt-to-equity ratio is 0.53.
Technical Analysis
DAR's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 35.72, which indicates that the stock is oversold. The moving average convergence divergence (MACD) is also negative, which indicates that the stock is in a downtrend.
Short Term Outlook
The short-term outlook for DAR is neutral. The stock is currently trading below its 50-day and 200-day moving averages, and the RSI and MACD are both negative. This indicates that the stock is likely to continue to trade in a downtrend in the near term.
Long Term Outlook
The long-term outlook for DAR is positive. The company has a strong financial position and a diverse customer base. DAR is also well-positioned to benefit from the growing demand for natural ingredients. The company's stock is currently trading at a discount to its intrinsic value, which makes it a good investment for long-term investors.
Analyst Recommendations
The consensus analyst recommendation for DAR is a "buy." Seven analysts have a "strong buy" rating, six analysts have a "buy" rating, two analysts have a "hold" rating, and zero analysts have a "sell" or "strong sell" rating. The average analyst target price for DAR is $54.47.
