Darling Ingredients (43D) AI Stock Analysis

2 Followers

Darling Ingredients

(XETRA:43D)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong cash generation and deleveragingRobust cash conversion gives Darling internal funding for debt reduction, reinvestment, and shareholder returns. The combination of accelerating free cash flow and lower leverage should improve financial resilience and preserve capital-allocation flexibility over the next several quarters.

Negative Factors

Cyclical and commodity-sensitive earningsDarling's earnings remain exposed to changing prices for fats, proteins, and other inputs, making reported profitability less predictable across cycles. The sharp rebound after a weak annual period shows meaningful operating volatility that could persist despite strong current margins.

Darling Ingredients (43D) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 8.55B
Dividend Yield: ―
Average Volume (3M): 105
Price to Earnings (P/E): 10.1
Beta (1Y): 0.07
Revenue Growth: 10.21%
EPS Growth: 643.40%
Country: Germany
Employees: 15,000
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

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 segm...

Darling Ingredients Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:-3.42%|Next Earnings Date:Mar 02, 2027

Earnings Call SentimentPositive

The call was strongly positive. Management reported substantial year-over-year growth in net income, sales, adjusted EBITDA, cash generation, debt reduction, and leverage improvement, reaffirmed $2.2 billion to $2.3 billion of full-year adjusted EBITDA guidance, and described strong momentum in Global Ingredients and improving DGD margin conditions. The principal challenges were temporary accounting and timing effects, a hydrogen-related production outage, tariff disruption, lower RIN values, and regulatory uncertainty, but management characterized these issues as temporary or manageable and maintained a confident outlook for the fourth quarter and 2027.

Positive Updates

Strong Third-Quarter Earnings Growth

Third-quarter net income was $267 million, or $1.67 per GAAP diluted share, compared with $19 million, or $0.12 per share, in the third quarter of 2025. For the first nine months of 2026, net income was $789 million, or $4.91 per share, compared with $6 million, or $0.04 per share, a year ago.

Negative Updates

Quarterly Results Affected by Timing and Accounting Items

Sequential performance was slightly affected by the timing of sales, the accounting treatment of North American fat sales to DGD, and global compensation expense. Core ingredients EBITDA declined sequentially due primarily to higher long-term incentive accruals and inventory adjustments.

Company Guidance

Darling reaffirmed full year 2026 combined adjusted EBITDA guidance of $2.2 billion to $2.3 billion, including core ingredients EBITDA of around $1.250 billion, plus or minus $10 million, or potentially $1.225 billion to $1.250 billion, with Q4 core ingredients EBITDA of $320 million to $340 million; DGD is expected to produce approximately 325 million gallons in Q4 and is modeled at a capture range of $1.50 and $2 a gallon on 1.2 billion gallons for the year. The company expects net debt down to or below $3 billion by year-end, to be pretty close to $2.5 billion by Q1, 2027, and expects the effective tax rate for 2026 to be about 25% and cash taxes of approximately $35 million for the remainder of the year. Management said fat prices will most likely rebound, with $0.65 to $0.70 a fair value for fats going forward for this year and next year, protein prices should remain very strong for ’27, water soluble collagen demand continues to grow at near double-digit rates, and the Tessenderlo joint venture is targeting a close hopefully in the first quarter of 2027.

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

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

DE:43D against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFD	69Neutral	$7.58B	8.36	13.00%	6.53%	-1.57%	3.81%
BRBR	64Neutral	$1.18B	7.00	-35.53%	―	5.86%	-19.48%
INGR	63Neutral	$5.73B	10.44	12.58%	3.54%	-0.98%	-12.90%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JBS	59Neutral	$13.29B	17.23	16.91%	8.03%	109.44%	-56.29%
PPC	42Neutral	$6.72B	20.90	8.53%	―	-0.14%	-74.01%

* Consumer Defensive Sector Average

Performance Comparison

DE:43D and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:43D	Darling Ingredients	48.03	18.47	62.48%
PPC	Pilgrim's Pride Corp	28.21	-9.44	-25.07%
INGR	Ingredion	92.83	-11.46	-10.99%
JBS	Jbs N.V.	12.45	0.29	2.34%
BRBR	Bellring Brands Inc Class A	10.01	-16.94	-62.86%
SFD	Smithfield Foods, Inc.	19.14	-1.73	-8.28%

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.

Darling Ingredients AI Stock Analysis