Quality Investor

Darling Ingredients Inc.

Rank #397ValueWatchlistCompare with other stocks

DAR · NYSE · Consumer Defensive

Darling Ingredients Inc. (DAR) — Rank #397 by gross profitability (GP/assets 0.13) · ROE 1.2% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0000916540 · all metrics point-in-time as of the filing date.

About

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.

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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.

Industry
Packaged Foods
Sector
Consumer Defensive
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
January 2

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

15,000

Industry

Packaged Foods

Exchange

NYSE

10/11

Flags passed

DAR fails 1 critical flag

Passes 10 of 11 quality flags

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Sequential beat (rev + EPS)

No data Balance sheet — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.13
Return on equity
1.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.07
Current ratio
1.56×
Net cash
$160.74M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.4%

Growth

2/2 pass
Revenue growth
7.4%
Piotroski F-Score
N/A
Share dilution
-0.8%

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 0.13

Gross profitability (GP / assets)

0.13

Primary signal (Novy-Marx).

13th of 13 SIC 20 peers

Return on equity

1.2%

Gross margin

24.0%

12th of 13 SIC 20 peers

Revenue growth (YoY)

7.4%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-2.1%

Revenue CAGR (5Y)

11.4%

Earnings CAGR (3Y)

-56.0%

FCF CAGR (3Y)

17.2%

Cash Flow Health

Is the cash real?

No warning flags · FCF 982% above net income

Free cash flow

$679.24M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

981.5%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.4%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net cash $160.74M

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.07

12th of 13 SIC 20 peers (best = lowest)

Current ratio

1.56×

11th of 13 SIC 20 peers

Quick ratio

—

Net cash

$160.74M

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Capital allocation quality

Composite score

3.0 / 5

Good
Share count trend(net buybacks)
-0.8%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
0.1%3/5 Good

Lifecycle Phase History

20212026
Value
Hypergrowth
Capital Return
Decline

Price History

DAR-11.1% · -2.3% CAGRSPY+82.9% · +12.8% CAGR