Darling Ingredients Faces Valuation Shift Amid Declining Profitability and Market Underperformance

Darling Ingredients, Inc., a small-cap player in the FMCG sector, has recently undergone an evaluation adjustment that reflects a shift in its valuation metrics. The company's valuation grade has transitioned from fair to very expensive, indicating a notable change in its financial standing. Key financial metrics reveal a P/E ratio of 29, which suggests a premium valuation compared to industry peers. The price-to-book value stands at 1.16, while the EV to EBIT ratio is recorded at 28.23. Additionally, the EV to EBITDA ratio is 11.01, and the EV to sales ratio is 1.59. These figures highlight the company's current market positioning and financial structure. Despite these metrics, Darling Ingredients has faced challenges, including a reported net profit of USD 19.92 million for the quarter ending June 2025, which reflects a significant decline. The company's return on capital employed (ROCE) is at 3.85%, indicating low profitability relative to its capital base. Furthermore, the company has consistently underperformed against market benchmarks over the past three years. For those interested in tracking the latest developments, you can Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.