DAR Stock Analysis — Darling Ingredients
Sector: Consumer staples
AI Verdict
DAR trades at 15x next year's earnings with sky-high growth expectations, so you're getting a bargain only if the operational turnaround and supply chain moat deliver on the 918.8% EPS jump.
Competitive Moat
Darling Ingredients processes animal by-products and food waste into specialty ingredients for agriculture, feed, and renewable energy, securing supply through long-term contracts with meat processors. Its defensibility comes from scale-driven logistics networks and regulatory barriers in waste management and biofuels.
Summary
DAR is notable for its extreme forward EPS growth forecast of 918.8%, driven by a turnaround in profitability.
Where It Stands
DAR returned -1.1% revenue growth last year, but trades at just 15.0x next year's earnings versus a sector median of 20x, with a trailing P/E of 152.5x reflecting depressed current profits.
Key Metrics
- Trailing P/E: 152.5x
- Forward P/E: 15.0x
- PEG Ratio: 0.17
- Earnings Growth: +9.2%
- Revenue Growth: -0.0%
- 52-Week High: $64.90
- 52-Week Low: $29.15
Analyst Consensus
18 Buy · 1 Hold · 0 Sell (19 analysts)
Bull Case
With forward EPS expected to surge 918.8%, the 15.0x forward P/E is cheap if the turnaround materializes.
Bear Case
If the 152.5x trailing P/E fails to collapse to the 15.0x forward level, even a modest multiple compression could erase much of the expected upside.
Catalyst to Watch
Watch for the next quarterly earnings report to confirm whether the forecasted earnings rebound is actually taking shape.