📊 DAR Key Takeaways
Investment Thesis
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.
DAR 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
DAR 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
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
DAR Financial Metrics
💡 AI Analyst Insight
DARLING INGREDIENTS INC. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DAR Profitability Ratios
DAR vs Energy Sector
How DARLING INGREDIENTS INC. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DAR Balance Sheet & Liquidity
DAR 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 Growth Metrics (YoY)
DAR Quarterly 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.
DAR Capital Allocation
DAR SEC Filings
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 an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DAR's 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.
What are the risks of investing in DAR?
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.
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?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.