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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%.

Market Outlook

Short Term

< 1 year
Positive
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 years
Positive
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 years
Positive
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

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.