DAR

Darling Ingredients Inc.Consumer Defensive / Packaged FoodsINTACT

Darling Ingredients Inc. develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. The Feed Ingredients segment collects and processes animal by-products into non-food grade oils and protein meals; bakery residuals into cookie meal used in poultry and swine rations; used cooking oil into non-food grade fats; and porcine and bovine blood into blood plasma powder and hemoglobin. This segment is also involved in the processing of selected portions of slaughtered animals into pet food, as well as of cattle hides and hog skins; production of organic fertilizers; rearing and processing of black soldier fly larvae into specialty proteins and fats for use in animal feed and pet food; and grease trap collection services to food service establishments. Its Food Ingredients segment engages in the purchase and processing of beef and pork bone chips, beef hides, and pig and fish skins into collagen; collection and processing of porcine and bovine intestines into natural casings; extraction and processing of porcine mucosa into crude heparin; collection and refining of animal fat into food grade fat; and processing of bones to bone chips and bone ash. The Fuel Ingredients segment is involved in the conversion of organic sludge and food waste into biogas; collection and conversion of fallen stock and certain animal by-products into low-grade energy sources; and processing of manure into natural bio-phosphate. It also provides environmental services, including disposal services; and yellow grease, fuel feedstock, and agriculture-based biofuels. The company sells its products under the Rendac, Sonac, FASA, Ecoson, Rousselot, Gelnex, and CTH brands. 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.

Share Price
$65.11
52W: $29.15 - $69.98
DCF Fair Value
$2.41
-2601.7% Premium
P/E (TTM)
17.5x
ROIC
9.7%
Operating Margin
12.9%
FCF Yield
2.1%
Debt / Equity
0.79x
Piotroski Score
6/9
Altman Z-Score
3.42
Market Cap
$10.3B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($2.41)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$2.41
MOS Buy Target (-25%)
$1.81
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$65.11
DCF Fair Value
$2.49
-2515.6% Premium
$220M
$100M$220M (Reported)$50,000M
6.5%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$4,000M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$1.9B
PV of Terminal Value
$2.5B
Implied Enterprise Value
$4.4B
Implied Equity Value
$0.4B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$234$250$266$283$301$315$329$344$359$376
Present Value (PV)$215$210$205$201$196$188$180$173$166$159

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-23.4% Premium
$52.75

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $3.72BVPS: $33.24
Revised Graham Formula-4.9% Premium
$62.06

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings2% Yield
$1.32 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.2BYield: 2%

Reverse DCF: Market Growth Expectation

HIGH BARRIER
16.9% CAGR (Next 10 Yrs)

At the current price of $65.11, the market is assuming the business will compound Free Cash Flow at 16.9% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil DAR with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Darling Ingredients Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 12.9% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Darling Ingredients Inc. (DAR) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Darling Ingredients Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Darling Ingredients Inc. has an estimated DCF intrinsic fair value of $2.41 per share compared to its current market price of $65.11. This represents an estimated 2601.7% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $52.75.

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