DAR:NYSEDarling Ingredients Inc. Analysis
Data as of 2026-06-13 - not real-time
$56.99
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
Darling Ingredients (DAR) is trading at $56.99, well below its 20‑day SMA of $59.43 and 50‑day SMA of $60.94, with a 14‑day RSI of 36.9 suggesting modest oversold conditions. The MACD remains bearish, but the recent 84% price surge over six months, driven by recovering renewable‑diesel margins and a sharp earnings rebound, has reignited investor enthusiasm; analysts collectively rate the stock as a "strong buy" and target prices around $75‑$76, implying roughly 34% upside.
Fundamentally, DAR delivers 12.3% revenue growth, a forward PE of 11.5 versus a trailing PE of 41.3, and an improving gross margin of 24.8% with operating margins near 8%. The balance sheet remains leveraged (debt‑to‑equity ~88%) but cash flow is solid (operating cash flow $964 M) and debt reduction is a stated focus. Low beta (≈0.55) and a defensive consumer‑defensive classification temper volatility, though 30‑day price swings hover near 24%.
Fundamentally, DAR delivers 12.3% revenue growth, a forward PE of 11.5 versus a trailing PE of 41.3, and an improving gross margin of 24.8% with operating margins near 8%. The balance sheet remains leveraged (debt‑to‑equity ~88%) but cash flow is solid (operating cash flow $964 M) and debt reduction is a stated focus. Low beta (≈0.55) and a defensive consumer‑defensive classification temper volatility, though 30‑day price swings hover near 24%.
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 7/10
Key Factors
- Technical oversold signal (RSI <40) and price below short‑term averages
- Recent momentum from renewable‑diesel margin recovery
- Strong analyst consensus (strong_buy) and upside potential ~34%
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Margin expansion and revenue growth sustaining earnings upgrades
- Forward valuation (PE 11.5) indicating attractive entry point
- Management focus on debt reduction improving balance‑sheet risk
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Secular demand for sustainable bio‑ingredients and circular‑economy services
- Defensive positioning in consumer‑defensive sector with low beta
- Long‑term upside from global expansion and diversification across feed, food, and fuel segments
Key Metrics & Analysis
Financial Health
Revenue Growth12.30%
Profit Margin3.54%
P/E Ratio41.3
ROE4.88%
ROA2.82%
Debt/Equity87.92
P/B Ratio1.9
Op. Cash Flow$963.7M
Free Cash Flow$185.7M
Technical Analysis
TrendNeutral
RSI36.9
Support$56.52
Resistance$63.00
MA 20$59.43
MA 50$60.94
MA 200$45.25
MACDBearish
VolumeDecreasing
Fear & Greed Index89.86
Valuation
Target Price$76.42
Upside/Downside34.09%
GradeUndervalued
TypeBlend
Risk Assessment
Beta0.55
Volatility24.24%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.