Darling Ingredients (DAR)
NYSEConsumer StaplesPackaged FoodsSnapshot 2026-09-09
$67.51+0.60%
Close 2026-09-09 · 1-day change
NYSEConsumer StaplesPackaged FoodsSnapshot 2026-09-09
Intact: The reason to own it still holds.
Darling Ingredients grows sales about 8% a year. Operating income rose from $28M to $227M in one year. Gross profit improved by $93M in the last year. The company is cutting costs and improving margins steadily.
The stock is expensive at 41 times earnings, much higher than peers at 17.5. Revenue growth could slow below 8%. Margin gains may stall, hurting income growth.
The price is about 2% below our fair value near $59. Analysts expect 8% revenue growth. Our fair value is 15% below the Street median, reflecting cautious optimism.
Breaks if: Capex exceeds $450 million in FY26
Breaks if: Gross profit falls below $404.9M in any quarter
Operating income falls below $226.8M in any quarter
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on earnings growth and cash generation. The current thesis is intact, supported by strong financial results and a recent positive shift in company momentum.
The market currently reflects a neutral valuation, with DAR priced as cheap compared to its peers. There is an expectations gap, indicating that the market may not fully account for the company's recent earnings strength.
Management is on track with priorities to drive earnings growth and cash generation, as evidenced by strong recent results. However, the progress on deleveraging and capital expenditure discipline is mixed, which introduces some uncertainty.
The long-term thesis hinges on management's ability to maintain earnings momentum and navigate sector challenges. Key factors include guidance updates and performance of sector bellwethers, which could influence DAR's trajectory.
The most important moves since the prior daily snapshot.
Signal changed from 'favorable' to 'mild_favorable'.
Yes, our read has strengthened. The latest earnings beat supports this improvement. The company announced a buyback plan to drive earnings growth and cash generation. There are no new threats affecting the thesis.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 8% next year
Focus on developing strategic partnerships to enhance growth and market presence.
Overall, DAR's fundamentals are strong, but the company must manage sector headwinds and execution risks effectively. Not investment advice.