Why is Darling Ingredients, Inc. ?
1
Poor Management Efficiency with a low ROCE of 6.86%
- The company has been able to generate a Return on Capital Employed (avg) of 6.86% signifying low profitability per unit of total capital (equity and debt)
2
Negative results in Jun 25
- NET PROFIT(Q) At USD 19.92 MM has Fallen at -53.16%
- OPERATING CASH FLOW(Y) Lowest at USD 823.64 MM
- ROCE(HY) Lowest at 2.32%
3
With ROCE of 3.85%, it has a expensive valuation with a 1.09 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -2.30%, its profits have fallen by -66.6%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -2.30% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Darling Ingredients, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Darling Ingredients, Inc.
-2.46%
-0.07
45.47%
S&P 500
13.22%
0.64
20.20%
Quality key factors
Factor
Value
Sales Growth (5y)
10.91%
EBIT Growth (5y)
22.58%
EBIT to Interest (avg)
4.14
Debt to EBITDA (avg)
3.53
Net Debt to Equity (avg)
0.87
Sales to Capital Employed (avg)
0.72
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
6.86%
ROE (avg)
14.10%
Valuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
Price to Book Value
1.16
EV to EBIT
28.23
EV to EBITDA
11.01
EV to Capital Employed
1.09
EV to Sales
1.59
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.85%
ROE (Latest)
4.02%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -10.94% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 88.76 %
NET SALES(Q)
Highest at USD 1,480.21 MM
-15What is not working for the Company
NET PROFIT(Q)
At USD 19.92 MM has Fallen at -53.16%
OPERATING CASH FLOW(Y)
Lowest at USD 823.64 MM
ROCE(HY)
Lowest at 2.32%
Here's what is working for Darling Ingredients, Inc.
Net Sales
Highest at USD 1,480.21 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Debt-Equity Ratio
Lowest at 88.76 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -10.94% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Darling Ingredients, Inc.
Net Profit
At USD 19.92 MM has Fallen at -53.16%
over average net sales of the previous four periods of USD 42.53 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Operating Cash Flow
Lowest at USD 823.64 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)






