# Darling Ingredients (DAR.US)

Canonical: https://gigainvestors.com/s/DAR

Analysis as of: 2026-10-16T07:27:55.100Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $60.87 per share; close as of 2026-10-15.

Estimated value: low $43.52 per share, central $49.49 per share, high $57.44 per share. Buy at or below the central value $49.49 per share. Valuation as of 2026-10-16T07:27:55.100Z; scenarios are not confidence intervals.

Expected annual return: 8.7% at the stated quote. About 8.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.45×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.05×

- FY2018: 0.08×

- FY2019: 0.14×

- FY2020: 0.12×

- FY2021: 0.19×

- FY2022: 0.16×

- FY2023: 0.14×

- FY2024: 0.08×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 6.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 10.1%

- ROIC, second-lowest year: 6.2%

- Typical minus recent gross margin: 6.9 pp

- Typical gross margin (annual median): 22.7%

- Recent gross margin (lower of latest and 3-year median): 15.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.4%

- ROIC including acquisitions, ten-year median: 5.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.7%

- FY2017: 6.6%

- FY2018: 8.8%

- FY2019: 13.2%

- FY2020: 11.4%

- FY2021: 19.6%

- FY2022: 16.3%

- FY2023: 13.1%

- FY2024: 7.5%

- FY2025: 6.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.14×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.7B

- Net income, five-year total: $2.4B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -0.3 pp

- Working capital / revenue, final three-year average: 15.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.06×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.61×

- FY2025: 3.04×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 6.6% vs 7.5%

- Per-share earnings: 0.62 to 1.73 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: -0.9%

- Market cap gain: $3.6B

- Cumulative retained earnings: $3.2B

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -0.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.7%

- Per-share value change: $1.11

- Per-share value, starting three-year median: $0.62

- Per-share value, ending three-year median: $1.73

- Buybacks concentrated in cheaper years (correlation): 0.54

- Average buyback yield: 0.6%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $2.1B

- Cumulative net income, 10 years: $3.3B

- ROIC, first three-year median: 6.6%

- ROIC, last three-year median: 7.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.62

- FY2017: $0.77

- FY2018: $0.60

- FY2019: $1.86

- FY2020: $1.78

- FY2021: $3.90

- FY2022: $4.49

- FY2023: $3.99

- FY2024: $1.73

- FY2025: $0.39

### accounting: pass

- Sloan accruals: -9.7%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 2.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 16.87×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.70×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.1%

- FY2017: -5.7%

- FY2018: -6.1%

- FY2019: -0.9%

- FY2020: -5.8%

- FY2021: -0.9%

- FY2022: -0.8%

- FY2023: -2.3%

- FY2024: -5.6%

- FY2025: -9.7%

## Holders

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Donald Yacktman](https://gigainvestors.com/YAM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 28% since Oct 2021 · "Is DAR a Buy as Earnings Surge but Cost and Capacity Risks Build?" (finance.yahoo.com, Aug 2026) · sales +7.4%

Story as of 2026-10-16T09:58:36.775Z; price observation 2026-10-15.

Price needs cash profits to grow 3.5% a year for ten years

- 2026-02-27: Darling Ingredients Q4 Beat And Board Refresh Refocus Investor Attention ([finance.yahoo.com](https://finance.yahoo.com/news/darling-ingredients-q4-beat-board-221106779.html))

- 2026-04-30: Darling Ingredients tops earnings forecasts despite slight revenue miss ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/darling-ingredients-tops-earnings-forecasts-142106775.html))

- 2026-07-31: Darling Ingredients Q2 Earnings Beat on DGD Strength, Sales Miss ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/darling-ingredients-q2-earnings-beat-145400795.html))

- 2026-08-20: Is DAR a Buy as Earnings Surge but Cost and Capacity Risks Build? ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/dar-buy-earnings-surge-cost-180100731.html))

### Sales · FY2024–2025

sales +7.4%; source https://www.sec.gov/Archives/edgar/data/916540/000091654026000008/dar-20260103.htm; observed 2026-03-03.

- FY2016: $3.4B 

- FY2017: $3.7B 

- FY2018: $3.4B 

- FY2019: $3.4B 

- FY2020: $3.6B 

- FY2021: $4.7B 

- FY2022: $6.5B 

- FY2023: $6.8B 

- FY2024: $5.7B 

- FY2025: $6.1B 

### Gross margin · FY2025

gross margin 15.8%; source https://www.sec.gov/Archives/edgar/data/916540/000091654026000008/dar-20260103.htm; observed 2026-03-03.

- FY2016: 22.3% 

- FY2017: 21.5% 

- FY2018: 21.9% 

- FY2019: 23.0% 

- FY2020: 24.7% 

- FY2021: 26.2% 

- FY2022: 23.4% 

- FY2023: 24.2% 

- FY2024: 22.4% 

- FY2025: 15.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in packaged foods; annual sales are USD 6.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/916540/000091654026000008/dar-20260103.htm (filed 2026-03-03); FY2025: revenue 6140125000; grossProfit 969457000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DAR.US: Darling Ingredients Inc. develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. The Feed Ingredients segment collects and processes animal by-products into non-food grade oils and protein meals; bakery residuals into cookie meal used in poultry and swine rations; used cooking oil into non-food grade fats; and porcine and bovine blood into blood plasma powder and hemoglobin. This segment is also involved in the processing of selected portions of slaughtered animals into pet food, as well as of cattle hides and hog skins; production of organic fertilizers; rearing and processing of black soldier fly larvae into specialty proteins and fats for use in animal feed and pet food; and grease trap collection services to food service establishments. Its Food Ingredients segment engages in the purchase and processing of beef and pork bone chips, beef hides, and pig and fish skins into collagen; collection and processing of porcine and bovine intestines into natural casings; extraction and processing of porcine mucosa into crude heparin; collection and refining of animal fat into food grade fat; and processing of bones to bone chips and bone ash. The Fuel Ingredients segment is involved in the conversion of organic sludge and food waste into biogas; collection and conversion of fallen stock and certain animal by-products into low-grade energy sources; and processing of manure into natural bio-phosphate. It also provides environmental services, including disposal services; and yellow grease, fuel feedstock, and agriculture-based biofuels. The company sells its products under the Rendac, Sonac, FASA, Ecoson, Rousselot, Gelnex, and CTH brands. The company was formerly known as Darling International Inc. and changed its name to Darling Ingredients Inc. in May 2014. Darling Ingredients Inc. was founded in 1882 and is headquartered in Irving, Texas.

### Why customers stay

Margins ranged from 15.8% to 24.2% during 2023–25; it earns 10.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2023: grossProfit / revenue = 24.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2024: grossProfit / revenue = 22.4%.

- Source: https://www.sec.gov/Archives/edgar/data/916540/000091654026000008/dar-20260103.htm (filed 2026-03-03); FY2025: grossProfit / revenue = 15.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); 10-year return on capital observations [[2016,0.056805699645106074],[2017,0.06641622822300676],[2018,0.08770242021886314],[2019,0.13169658386224325],[2020,0.1141137760828781],[2021,0.19579570211953137],[2022,0.1626960955078722],[2023,0.13136053067505832],[2024,0.07507893264147343],[2025,0.06232356486829326]]; median 0.10090809815087062. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 6 of 10 years; bought back USD 34.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2016: growth capex 0; upkeep 243546000; owner earnings 148675000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2017: growth capex 0; upkeep 281303000; owner earnings 149265000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2018: growth capex 0; upkeep 325779000; owner earnings 96909000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2019: growth capex 0; upkeep 363149000; owner earnings 274961000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2020: growth capex 0; upkeep 283925000; owner earnings 363072000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2021: growth capex 0; upkeep 274400000; owner earnings 692901000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2022: growth capex 0; upkeep 392801000; owner earnings 739610000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2023: growth capex 54989000; upkeep 502015000; owner earnings 647726000. Growth capex / owner earnings = 0.0848954650577559.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); FY2024: growth capex 0; upkeep 332481000; owner earnings 450224000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/916540/000091654026000008/dar-20260103.htm (filed 2026-03-03); FY2025: growth capex 0; upkeep 380489000; owner earnings 190819000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); Dividend observations: [[2016,136674000],[2017,5281000],[2018,10257000],[2019,1025200000],[2020,492568000],[2021,664425000],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/916540/000091654026000008/dar-20260103.htm (filed 2026-03-03); FY2025: cash repurchases 34668000 USD.

### Are managers owners

Insiders own 1.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); DAR.US SharesStats.PercentInsiders = 1.185 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.5% yearly over ten years; actual growth was 5.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-03); Ten-year compound average after fade. Initial solved rate 0.03709139349173152. Price 60.87; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.6949048867786263 → FY2025 1.19144964004071. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $13.60 per share

- 2016-11: $13.51 per share

- 2016-12: $12.91 per share

- 2017-01: $12.00 per share

- 2017-02: $13.01 per share

- 2017-03: $14.52 per share

- 2017-04: $15.13 per share

- 2017-05: $15.67 per share

- 2017-06: $15.74 per share

- 2017-07: $16.27 per share

- 2017-08: $17.40 per share

- 2017-09: $17.52 per share

- 2017-10: $18.25 per share

- 2017-11: $17.95 per share

- 2017-12: $18.13 per share

- 2018-01: $18.54 per share

- 2018-02: $18.19 per share

- 2018-03: $17.30 per share

- 2018-04: $17.14 per share

- 2018-05: $18.79 per share

- 2018-06: $19.88 per share

- 2018-07: $20.09 per share

- 2018-08: $19.78 per share

- 2018-09: $19.32 per share

- 2018-10: $20.66 per share

- 2018-11: $21.88 per share

- 2018-12: $19.24 per share

- 2019-01: $21.27 per share

- 2019-02: $21.98 per share

- 2019-03: $21.65 per share

- 2019-04: $21.81 per share

- 2019-05: $18.90 per share

- 2019-06: $19.89 per share

- 2019-07: $20.33 per share

- 2019-08: $18.60 per share

- 2019-09: $19.13 per share

- 2019-10: $19.30 per share

- 2019-11: $23.80 per share

- 2019-12: $28.08 per share

- 2020-01: $27.13 per share

- 2020-02: $25.70 per share

- 2020-03: $19.17 per share

- 2020-04: $20.59 per share

- 2020-05: $23.31 per share

- 2020-06: $24.62 per share

- 2020-07: $27.93 per share

- 2020-08: $31.97 per share

- 2020-09: $36.03 per share

- 2020-10: $43.00 per share

- 2020-11: $48.28 per share

- 2020-12: $57.68 per share

- 2021-01: $62.01 per share

- 2021-02: $63.04 per share

- 2021-03: $73.58 per share

- 2021-04: $69.45 per share

- 2021-05: $68.46 per share

- 2021-06: $67.50 per share

- 2021-07: $69.07 per share

- 2021-08: $74.50 per share

- 2021-09: $71.90 per share

- 2021-10: $84.52 per share

- 2021-11: $67.52 per share

- 2021-12: $69.29 per share

- 2022-01: $63.77 per share

- 2022-02: $72.48 per share

- 2022-03: $80.38 per share

- 2022-04: $73.39 per share

- 2022-05: $80.07 per share

- 2022-06: $59.80 per share

- 2022-07: $69.28 per share

- 2022-08: $76.06 per share

- 2022-09: $66.15 per share

- 2022-10: $78.48 per share

- 2022-11: $71.83 per share

- 2022-12: $62.59 per share

- 2023-01: $66.29 per share

- 2023-02: $63.27 per share

- 2023-03: $58.40 per share

- 2023-04: $59.57 per share

- 2023-05: $63.38 per share

- 2023-06: $63.79 per share

- 2023-07: $69.25 per share

- 2023-08: $61.76 per share

- 2023-09: $52.20 per share

- 2023-10: $44.29 per share

- 2023-11: $43.87 per share

- 2023-12: $49.84 per share

- 2024-01: $43.30 per share

- 2024-02: $42.31 per share

- 2024-03: $46.51 per share

- 2024-04: $42.37 per share

- 2024-05: $40.40 per share

- 2024-06: $36.75 per share

- 2024-07: $39.73 per share

- 2024-08: $41.73 per share

- 2024-09: $37.16 per share

- 2024-10: $39.11 per share

- 2024-11: $40.53 per share

- 2024-12: $33.69 per share

- 2025-01: $37.46 per share

- 2025-02: $36.09 per share

- 2025-03: $31.24 per share

- 2025-04: $32.19 per share

- 2025-05: $31.16 per share

- 2025-06: $37.94 per share

- 2025-07: $32.38 per share

- 2025-08: $33.96 per share

- 2025-09: $30.87 per share

- 2025-10: $32.05 per share

- 2025-11: $36.61 per share

- 2025-12: $36.00 per share

- 2026-01: $45.66 per share

- 2026-02: $53.16 per share

- 2026-03: $61.85 per share

- 2026-04: $64.23 per share

- 2026-05: $59.10 per share

- 2026-06: $54.62 per share

- 2026-07: $60.64 per share

- 2026-08: $66.27 per share

- 2026-09: $60.71 per share

- 2026-10: $60.87 per share

## Annual estimated value (USD per share)

- FY2016: low $12.52 per share, central $17.76 per share, high $20.81 per share

- FY2017: low $9.99 per share, central $11.34 per share, high $13.13 per share

- FY2018: low $7.70 per share, central $8.73 per share, high $10.10 per share

- FY2019: low $8.93 per share, central $10.16 per share, high $11.79 per share

- FY2020: low $10.28 per share, central $11.69 per share, high $13.56 per share

- FY2021: low $28.53 per share, central $36.74 per share, high $42.95 per share

- FY2022: low $53.57 per share, central $74.47 per share, high $87.37 per share

- FY2023: low $56.15 per share, central $77.89 per share, high $91.38 per share

- FY2024: low $39.34 per share, central $44.76 per share, high $51.98 per share

- FY2025: low $39.99 per share, central $45.50 per share, high $52.84 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/916540/000091654026000008/dar-20260103.htm); period 2026-01-03, filed 2026-03-03.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.