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Darling Ingredients
(NYSE:DAR)
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Rating:65Neutral
Price Target:
$73.00
▲(16.80% Upside)
Action:Reiterated
Date:08/08/26
DAR scores as moderately attractive: improving profitability and a positive earnings-call setup (strong DGD-driven results, actionable guidance, and deleveraging targets) support the rating. The main offsets are very expensive valuation (P/E ~126) and mixed near-term technicals, plus some cash-conversion/working-capital pressure highlighted in both financials and the call.
Positive Factors
Strong operating recovery
The sharp improvement across Diamond Green Diesel and Core Ingredients shows stronger operating execution, pricing and product economics. Continued Q3 guidance provides visibility that the recovery may support earnings over the next several months.
Negative Factors
Exposure to policy and commodity volatility
Renewable-fuel economics depend partly on regulatory credits, while core ingredients depend on commodity prices. Persistent policy changes and price swings can make margins and earnings less predictable even when operations remain sound.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating recovery
The sharp improvement across Diamond Green Diesel and Core Ingredients shows stronger operating execution, pricing and product economics. Continued Q3 guidance provides visibility that the recovery may support earnings over the next several months.
Read all positive factors
Darling Ingredients Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures what each segment contributes to the company’s bottom line after operating costs, highlighting which businesses are truly profitable, where management is investing capital, and whether reported sales translate into sustainable earnings.
Measures what each segment contributes to the company’s bottom line after operating costs, highlighting which businesses are truly profitable, where management is investing capital, and whether reported sales translate into sustainable earnings.
Data provided by:
The Fly
The FlyDarling Ingredients (DAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.56B
Dividend YieldN/A
Average Volume (3M)2.29M
Price to Earnings (P/E)18.0
Beta (1Y)0.47
Revenue Growth14.73%
EPS Growth468.97%
CountryUS
Employees15,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)3.77
Shares Outstanding157,802,920
10 Day Avg. Volume1,779,875
30 Day Avg. Volume2,294,465
Financial Highlights & Ratios
PEG Ratio-1.22
Price to Book (P/B)1.26
Price to Sales (P/S)0.97
P/FCF Ratio8.78
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$80.14Price Target Upside28.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)6.38
Revenue Forecast (FY)$6.84B
Darling Ingredients Business Overview & Revenue Model
Company Description
Darling Ingredients Inc. specializes in the development and production of natural ingredients sourced from various organic bio-nutrients, encompassing both edible and inedible materials. The company's operations are structured into three primary s...
How the Company Makes Money
Darling Ingredients makes money primarily by collecting, processing, and selling products derived from organic residuals into higher-value markets. Revenue is generated through: (1) Rendering and ingredient sales: Darling collects animal by-produc...
Darling Ingredients Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call highlighted substantial operational and financial improvement driven by strong DGD performance, higher fat and protein markets, and effective commercial and margin management across the core ingredients and food segments. Management achieved material earnings and cash generation, used DGD distributions to reduce debt, completed accretive M&A, and provided confident near-term guidance. Noted challenges include working capital buildup at DGD, near-term cash uses that limited immediate deleveraging, some remaining tariff recovery uncertainty, and ongoing policy/RIN volatility. On balance, the positive operational and financial momentum and clear path to below-$3B net debt and sub-2x leverage outweigh the headwinds.Positive Updates
Material Net Income Improvement
Net income for Q2 2026 was $387.0M ($2.41 GAAP diluted share) versus $13.0M ($0.08) in Q2 2025 — an increase of $374M (≈+2,877%), reflecting substantially improved profitability.
Negative Updates
Working Capital and Inventory Build at DGD
DGD increased current assets minus current liabilities due to a strategic build of feedstock inventories to support high run rates; this tied up cash in Q2 and limited the amount of immediate debt paydown.
Read all updates
Q2-2026 Updates
Positive
Negative
Material Net Income Improvement
Net income for Q2 2026 was $387.0M ($2.41 GAAP diluted share) versus $13.0M ($0.08) in Q2 2025 — an increase of $374M (≈+2,877%), reflecting substantially improved profitability.
Read all positive updates
Company Guidance
Darling guided third‑quarter Core Ingredients adjusted EBITDA of $325–$340 million and expects Diamond Green Diesel (DGD) to produce ~335 million gallons in Q3; this follows Q2 combined adjusted EBITDA of ≈$742 million (Core Ingredients ≈$353M; DGD ≈$389M) on Q2 net sales of $1.7 billion and net income of $387 million ($2.41 GAAP diluted/share), with DGD selling ~350 million gallons in Q2 at about $2.23 EBITDA/gal (production reported ~356 million gallons) and including a ~$51 million IEEPA tariff recovery; Darling received ≈$280 million in cash from DGD (~$211M dividends + $69M 2025 PTC sales), used to reduce net debt by >$220 million and lower leverage to ~2.3x (from 2.9x), and the company expects net debt to be at or below ~$3.0 billion and leverage well below 2x by year‑end, with a full‑year effective tax rate of ~25% (Q2 ~22%, ex‑PTC/discretes ~27%), maintenance CapEx ~ $450 million, a Potenze Brazil acquisition cost of ~ $122 million, $73 million of share repurchases in the quarter, a subsequent ~$90 million trap sale, and an identified $150–$300 million upside in adjusted EBITDA over the next three years.Darling Ingredients Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.56B | 6.14B | 5.72B | 6.79B | 6.53B | 4.74B |
| Gross Profit | 1.64B | 969.46M | 1.28B | 1.65B | 1.53B | 1.24B |
| EBITDA | 1.49B | 792.77M | 1.01B | 1.48B | 1.41B | 1.20B |
| Net Income | 597.93M | 62.80M | 278.88M | 647.73M | 737.69M | 650.91M |
Balance Sheet | ||||||
| Total Assets | 10.98B | 10.30B | 10.07B | 11.06B | 9.20B | 6.13B |
| Cash, Cash Equivalents and Short-Term Investments | 160.74M | 88.67M | 75.97M | 126.50M | 127.02M | 68.91M |
| Total Debt | 4.17B | 4.16B | 4.26B | 4.64B | 3.58B | 1.62B |
| Total Liabilities | 5.68B | 5.49B | 5.61B | 6.37B | 5.31B | 2.79B |
| Stockholders Equity | 5.25B | 4.74B | 4.38B | 4.61B | 3.81B | 3.28B |
Cash Flow | ||||||
| Free Cash Flow | 881.24M | 679.23M | 506.81M | 342.26M | 420.94M | 430.02M |
| Operating Cash Flow | 1.35B | 1.06B | 839.29M | 899.26M | 813.74M | 704.42M |
| Investing Cash Flow | -1.08B | -720.28M | -498.90M | -1.68B | -2.42B | -490.26M |
| Financing Cash Flow | -201.07M | -337.89M | -399.56M | 876.29M | 1.68B | -221.36M |
Darling Ingredients Technical Analysis
Positive
62.50
Price Trends
59.81
Positive
60.50
Positive
51.82
Positive
Market Momentum
2.06
Negative
65.18
Neutral
85.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAR, the sentiment is Positive. The current price of 62.5 is below the 20-day moving average (MA) of 62.58, above the 50-day MA of 59.81, and above the 200-day MA of 51.82, indicating a bullish trend. The MACD of 2.06 indicates Negative momentum. The RSI at 65.18 is Neutral, neither overbought nor oversold. The STOCH value of 85.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAR.
Darling Ingredients Risk Analysis
Darling Ingredients disclosed 51 risk factors in its most recent earnings report. Darling Ingredients reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Darling Ingredients Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $7.45B | 13.58 | 14.85% | ― | 1.42% | -55.97% | |
66 Neutral | $6.76B | 11.51 | 13.46% | 3.23% | -1.38% | -10.81% | |
65 Neutral | $10.56B | 17.99 | 12.24% | ― | 14.73% | 468.97% | |
65 Neutral | $7.40B | 25.46 | 16.12% | 3.03% | 2.50% | -16.90% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $1.25B | 7.31 | -35.53% | ― | 5.86% | -19.48% |
* Consumer Defensive Sector Average
DAR
Darling Ingredients
65.74
30.92
88.80%
PPC
Pilgrim's Pride
32.25
-13.91
-30.13%
INGR
Ingredion
106.84
-18.36
-14.66%
LW
Lamb Weston Holdings
53.47
-1.81
-3.27%
BRBR
BellRing Brands
10.45
-29.46
-73.82%
Darling Ingredients Corporate Events
Business Operations and StrategyStock Buyback
Darling Ingredients Doubles Share Repurchase Authorization Program
Positive
Aug 5, 2026
On August 5, 2026, Darling Ingredients’ Board of Directors refreshed and expanded the company’s share repurchase program, doubling the authorization from $500 million to $1 billion of common stock, with no expiration date. The program ...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Darling Ingredients Reports Strong Q2 Results, Deleveraging Continues
Positive
Jul 30, 2026
Darling Ingredients Inc. reported a sharp improvement in financial performance for the second quarter of 2026, with net income jumping to $387.3 million from $12.7 million a year earlier and net sales rising to $1.7 billion from $1.5 billion. For ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.