Darling Ingredients Inc. (DAR) AI Stock Analysis

Darling Ingredients Inc. develops, produces, and markets natural ingredients derived from edible and inedible bio-nutrients. The company operates across three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. It converts animal by-product streams into collagen, edible fats, animal proteins, plasma, and organic fertilizers. In addition, it collects and repurposes used cooking oil, animal fats, and bakery residues into feed and fuel inputs. Its global brands include Sonac, Dar Pro, Rothsay, Rousselot, and Nature Safe, serving North America, Europe, China, South America, Australia, and other regions. The company also provides commercial grease trap collection and disposal services.

Between FY2021 and FY2025, revenue expanded from $4.74B to $6.14B, reflecting a 5-year compound annual growth rate of 11.4%. However, annual performance fluctuated, with revenue falling 15.8% in FY2024 to $5.72B before rebounding 7.4% in FY2025. Operating margin narrowed from 18.7% in FY2021 to 6.4% in FY2025, while net margin contracted from 13.7% to 1.0%, bringing net income down to $62.8M. Performance improved in the trailing twelve months ending June 30, 2026, generating $6.55B in revenue and an operating margin of 12.9%. In the latest quarter, revenue rose 16.4% year-over-year, and earnings climbed 2914.0%.

As of June 30, 2026, Darling Ingredients held $160.7M in cash and short-term investments against total debt of $4.17B, resulting in net debt of $4.01B. The balance sheet reflects a debt-to-equity ratio of 0.80 and a current ratio of 1.56, supported by $5.25B in shareholders' equity. Operating cash flow stood at $1.06B in FY2025, which covered $380.5M in capital expenditures and generated $679.2M in free cash flow. Capital allocation that year included $34.7M in share buybacks, and the share count was reduced 3.1% over five years.

DAR trades at a trailing price-to-earnings ratio of 16.5x and a forward P/E of 11.7x, both below the median of its US-listed Consumer Defensive peers, which stand at 18.6x and 14.3x, respectively. Its enterprise value-to-EBITDA ratio of 9.2x is also lower than the peer median of 11.7x. Conversely, its price-to-sales ratio of 1.5x exceeds the peer median of 0.7x. Over the past year, DAR's return of 93.6% outperformed the S&P 500's return of 16.8%, although its five-year return of -17.4% trailed the S&P 500's 83.0% gain.

Wall Street sentiment is predominantly positive, with 10 Strong Buy, 1 Buy, and 1 Hold ratings. The mean price target is $82.08, representing a 33.8% premium over the last close of $61.36. For the fiscal year ending December 31, 2026, analysts expect revenue of $6.83B and EPS of $7.04, indicating 629.1% EPS growth. For the following fiscal year, 8 analysts project revenue of $7.08B and EPS of $6.24. DAR beat EPS expectations in 3 of the last 4 quarters, and its next earnings date is October 29, 2026.

This page is an AI-written research summary of Darling Ingredients Inc. (DAR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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