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Darling Ingredients Inc

Exchange: NYSESector: Consumer DefensiveIndustry: Packaged Foods

Darling International Inc. (Darling) is a provider of rendering, cooking oil and bakery waste recycling and recovery solutions. The Company collects and recycles animal by-products, bakery residual and used cooking oil from poultry and meat processors, commercial bakeries, grocery stores, butcher shops, and food service establishments and provides grease trap cleaning services to many of the same establishments. The Company operates over 120 processing and transfer facilities located throughout the United States to process raw materials into finished products such as protein (primarily meat and bone meal (MBM) and poultry meal (PM)), hides, fats (primarily bleachable fancy tallow (BFT), poultry grease (PG) and yellow grease (YG)) and bakery by-products (BBP) as well as a range of branded and value-added products. In October 2013, Darling International Inc completed its acquisition of Rothsay, the rendering and biodiesel division of Maple Leaf Foods Inc.

Did you know?

Carries 39.5x more debt than cash on its balance sheet.

Current Price

$63.77

-0.72%

GoodMoat Value

$85.02

33.3% undervalued
Profile
Valuation (TTM)
Market Cap$10.09B
P/E160.62
EV
P/B2.13
Shares Out158.19M
P/Sales1.64
Revenue$6.14B
EV/EBITDA18.04

Darling Ingredients Inc (DAR) Valuation

DAR Fair Value Estimate

$85.0233.3% undervalued

Blended fair value estimate based on DCF, Graham Number, and earnings-based models.

DAR Valuation Metrics

FCF$691.48M
FCF Growth Rate50.00%
EPS Growth (CAGR)-23.47%
WACC10.00%

DAR Valuation & Fair Value Analysis

Darling Ingredients Inc (DAR) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.

The GoodMoat Fair Value target for Darling Ingredients Inc is $85.02. The current stock price is $63.77, suggesting the stock is 33.3% undervalued.

The price-to-earnings (P/E) ratio is 160.62. Price-to-book ratio is 2.13. Price-to-sales ratio is 1.64. Enterprise value to EBITDA is 18.04. PEG ratio is -3.67.

GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Darling Ingredients Inc's intrinsic value.