Fundamental analysis: Darling Ingredients Inc. (DAR)

Awarener score: 6.8

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Modest) and growth (Very good), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.5

Business has been growing at a very good pace. It's been great when measured against peer companies.
Darling Ingredients Inc. business trend isn't so stable. The higher the stability, the lower the risk. It looks mediocre against rivals.

Margins score: 6.7

DAR profit margins -on goods and services sold- are usually meagre. They stand slightly worse than rival companies.
Business profit on sales tends to be very good. It's more than average in relation to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually good. They remain impressive in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be good in relation to total revenues. They're still well ranked against similar companies.
Profits -before income taxes- are usually good considering total sales, and remain more than average in relation to rivals.
Total net profit tends to be good when confronted to sales. Company stands more than average in relation to comparable firms.

Growth score: 8.7

Darling Ingredients Inc. profit -on goods and services sold- has been growing at a good pace. It's been excellent in relation to competitors.
In recent years, earnings -on operations- have been growing at an extremely fast step, which has been top-notch against comparable firms.
Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares more than average in relation to peer enterprises.
Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be in good shape compared to similar stocks.
In past years, profits -before income taxes- grew at an excellent speed. It was better than most rivals.
In the previous years, growth trend on total net profit has been excellent, and more than average in relation to peer companies.
Earnings per share have grown at an excellent rhythm in past years. It's been excellent in relation to industry peers.

Miscellaneous score: 7.0

DAR had hardly to pay income taxes in relation to profits made in the past years. It's been well ranked against peers.
The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 8.5

Darling Ingredients Inc. usually gets excellent returns on the resources it controls. It proves more than average in relation to peer firms.
The company normally gets very good proceeds -on the resources directly invested in the business-. They remain in good shape compared to similar companies.
There's usually abundant profitability -in relation to owned resources-. It ranks more than average in relation to competitors.
In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 6.7

DAR usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands encouraging in relation to rival firms.
The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is below average when measured against industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in good shape compared to rivals.
The company uses a slight portion of genuine fund generation to reward investors. The company is usually improving its financial position, and could most likely increase stockholder rewards if it wished to do so. It still looks great when measured against competitors.

Balance Sheet score: 4.7

Darling Ingredients Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be in a weak position compared to similar firms.
A substantial part of resources controlled were provided for with financial debt. Creditors have as many claims on the company as shareholders. The situation is somewhat risky. It remains mediocre against rival firms.
Most controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks weak when measured against rivals.
For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's lacking compared to peer firms.
For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is mediocre against similar enterprises.
Usually, sales are on a month and a half credit. It still ranks weak when measured against peers.
Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as a slight improvement compared to competitors.
On average, it takes higher than three months from the purchase to charging customers. It happens to be well ranked against peers.
On average pays suppliers after a month and a half from the purchase. It ranks almost average when measured against industry peers.
The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's a slight improvement compared to similar companies.
Net interest expenses consume a portion of usual business earnings, but are bearable. It stands somewhat worse than rival firms.
Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks similar to comparable enterprises.
Revenues are somewhat low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a very weak position compared to similar firms.
Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still slightly worse than peer companies.

Valuation score: 6.1

Darling Ingredients Inc. looks reasonable in relation to profits and financial position. It happens to be more than average in relation to competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
In the past twelve months, the company generated some good free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still similar to industry firms.
In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up close to average when compared to peer ventures.
The company is indebted, it should focus on loan repayment. It looks slightly worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks more than average in relation to peer companies.
Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
The relation between the stock price and accounting book value is high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains slightly worse than peer firms.
In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 6.9

Company at a glance: Darling Ingredients Inc. (DAR)

Sector, industry: Consumer Defensive, Packaged Foods

Market Cap: 8.99 billions

Revenues TTM: 6.53 billions

Darling Ingredients Inc. develops, produces, and sells natural ingredients from edible and inedible bio-nutrients. The company operates through three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. It offers ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries. The company also collects and transforms various animal by-product streams into useable and specialty ingredients, such as collagen, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstock, green energy, natural casings, and hides. In addition, it recovers and converts used cooking oil and animal fats, and residual bakery products into valuable feed and fuel ingredients. Further, the company provides environmental services, including grease trap collection and disposal services to food service establishments. It primarily operates under the Sonac, Dar Pro, Rothsay, Rousselot, Nature Safe, CleanStar, Peptan, Cookie Meal, Bakery Feeds, Ecoson, and Rendac brand names in North America, Europe, China, South America, Australia, and internationally. The company was formerly known as Darling International Inc. and changed its name to Darling Ingredients Inc. in May 2014. Darling Ingredients Inc. was founded in 1882 and is headquartered in Irving, Texas.