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
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -1.31% 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 buy?
- Overall Portfolio exposure to Darling Ingredients, Inc. should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Darling Ingredients, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Darling Ingredients, Inc.
86.16%
-0.06
45.43%
S&P 500
22.99%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
11.36%
EBIT Growth (5y)
18.13%
EBIT to Interest (avg)
4.14
Debt to EBITDA (avg)
3.53
Net Debt to Equity (avg)
0.87
Sales to Capital Employed (avg)
0.69
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
72
Industry P/E
Price to Book Value
2.11
EV to EBIT
35.40
EV to EBITDA
15.41
EV to Capital Employed
1.61
EV to Sales
2.26
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.54%
ROE (Latest)
2.91%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Bullish
Technical Movement
24What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at 86.31 %
RAW MATERIAL COST(Y)
Fallen by -35.7% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 8.96 times
DEBTORS TURNOVER RATIO(HY)
Highest at 9.97 times
PRE-TAX PROFIT(Q)
Highest at USD 177.17 MM
NET PROFIT(Q)
Highest at USD 135.47 MM
EPS(Q)
Highest at USD 0.83
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Darling Ingredients, Inc.
Pre-Tax Profit
At USD 177.17 MM has Grown at 442.04%
over average net sales of the previous four periods of USD 32.69 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 135.47 MM has Grown at 315.4%
over average net sales of the previous four periods of USD 32.61 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Debt-Equity Ratio
Lowest at 86.31 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Pre-Tax Profit
Highest at USD 177.17 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 135.47 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.83
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 8.96 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 9.97 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -35.7% (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






