📊 DAR Key Takeaways
Is Darling Ingredients Inc.. (DAR) a Good Investment?
Darling Ingredients demonstrates solid revenue growth (+7.4% YoY) and strong free cash flow generation ($679.2M), but profitability metrics are concerning with net income flat YoY, diluted EPS down 77.5%, and minimal net margins of 1.0%. The company's weak interest coverage (1.1x) and high debt load ($3.9B) relative to equity present financial stress that limits financial flexibility.
Darling Ingredients shows solid revenue growth and strong cash generation, with free cash flow materially outpacing reported net income. However, profitability has weakened sharply at the bottom line, margins are thin, and interest coverage of 1.1x leaves little cushion against financing or operating pressure. The fundamentals support resilience, but not enough quality or earnings strength for a more bullish rating.
Why Buy Darling Ingredients Inc.. Stock? DAR Key Strengths
- Strong revenue growth of 7.4% YoY reaching $6.1B demonstrates market demand resilience
- Robust free cash flow of $679.2M (11.1% FCF margin) provides substantial cash generation for operations and debt service
- Reasonable current ratio of 1.50x and moderate debt-to-equity of 0.82x suggest adequate near-term liquidity position
- Revenue grew 7.4% year over year, indicating the business still has underlying demand and scale momentum
- Operating cash flow of $1.06B and free cash flow of $679.24M show strong cash conversion relative to reported earnings
- Liquidity is acceptable with a 1.50x current ratio and 0.99x quick ratio, while equity still supports the balance sheet
DAR Stock Risks: Darling Ingredients Inc.. Investment Risks
- Severe profitability compression with net income flat YoY and diluted EPS collapsing 77.5%, indicating margin deterioration despite revenue gains
- Dangerously low interest coverage ratio of 1.1x leaves minimal cushion for debt obligations if operating performance declines
- Minimal net profit margin of 1.0% suggests the business is highly commoditized with limited pricing power; gross margin of 24% faces pressure from input costs
- Net margin of 1.0%, ROE of 1.3%, and ROA of 0.6% indicate very weak profitability and low returns on capital
- Diluted EPS fell 77.5% year over year despite revenue growth, suggesting earnings quality and cost structure pressure
- Interest coverage of 1.1x and long-term debt of $3.86B create meaningful financial risk if operating income weakens further
Key Metrics to Watch
- Operating margin trend and gross margin sustainability amid commodity price volatility
- Interest coverage ratio and cash flow adequacy relative to debt obligations
- Net income recovery trajectory and underlying drivers of the 77.5% EPS decline
- Operating margin and interest coverage
- Free cash flow consistency versus net income and debt reduction progress
Darling Ingredients Inc.. (DAR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Darling Ingredients Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DAR Profit Margin, ROE & Profitability Analysis
DAR vs Energy Sector: How Darling Ingredients Inc.. Compares
How Darling Ingredients Inc.. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Darling Ingredients Inc.. Stock Overvalued? DAR Valuation Analysis 2026
Based on fundamental analysis, Darling Ingredients Inc.. shows some fundamental concerns relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Darling Ingredients Inc.. Balance Sheet: DAR Debt, Cash & Liquidity
DAR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Darling Ingredients Inc..'s revenue has grown significantly by 43% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.99 reflects profitable operations.
DAR Revenue Growth, EPS Growth & YoY Performance
DAR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.4B | $5.9M | $0.04 |
| Q2 2025 | $1.5B | $12.7M | $0.08 |
| Q1 2025 | $1.4B | -$26.2M | $-0.16 |
| Q3 2024 | $1.4B | $16.9M | $0.11 |
| Q2 2024 | $1.5B | $78.9M | $0.49 |
| Q1 2024 | $1.4B | $81.2M | $0.50 |
| Q3 2023 | $1.6B | $125.0M | $0.77 |
| Q2 2023 | $1.7B | $202.0M | $1.23 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Darling Ingredients Inc.. Dividends, Buybacks & Capital Allocation
DAR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Darling Ingredients Inc.. (CIK: 0000916540)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DAR
What is the AI rating for DAR?
Darling Ingredients Inc.. (DAR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAR's key strengths?
Claude: Strong revenue growth of 7.4% YoY reaching $6.1B demonstrates market demand resilience. Robust free cash flow of $679.2M (11.1% FCF margin) provides substantial cash generation for operations and debt service. ChatGPT: Revenue grew 7.4% year over year, indicating the business still has underlying demand and scale momentum. Operating cash flow of $1.06B and free cash flow of $679.24M show strong cash conversion relative to reported earnings.
What are the risks of investing in DAR?
Claude: Severe profitability compression with net income flat YoY and diluted EPS collapsing 77.5%, indicating margin deterioration despite revenue gains. Dangerously low interest coverage ratio of 1.1x leaves minimal cushion for debt obligations if operating performance declines. ChatGPT: Net margin of 1.0%, ROE of 1.3%, and ROA of 0.6% indicate very weak profitability and low returns on capital. Diluted EPS fell 77.5% year over year despite revenue growth, suggesting earnings quality and cost structure pressure.
What is DAR's revenue and growth?
Darling Ingredients Inc.. reported revenue of $6.1B.
Does DAR pay dividends?
Darling Ingredients Inc.. does not currently pay dividends.
Where can I find DAR SEC filings?
Official SEC filings for Darling Ingredients Inc.. (CIK: 0000916540) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DAR's EPS?
Darling Ingredients Inc.. has a diluted EPS of $0.39.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DAR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Darling Ingredients Inc.. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DAR stock overvalued or undervalued?
Valuation metrics for DAR: ROE of 1.3% (sector avg: 14%), net margin of 1.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy DAR stock in 2026?
Our dual AI analysis gives Darling Ingredients Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DAR's free cash flow?
Darling Ingredients Inc..'s operating cash flow is $1.1B, with capital expenditures of $380.5M. FCF margin is 11.1%.
How does DAR compare to other Energy stocks?
Vs Energy sector averages: Net margin 1.0% (avg: 12%), ROE 1.3% (avg: 14%), current ratio 1.50 (avg: 1.3).