Darling Ingredients is the world's largest publicly-traded developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and specialty products for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy, and fertilizer industries. The company was founded in 1882 and is based in Irving, Texas.
DAR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DAR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Darling Ingredients Inc ranked in the 28th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 63.83%. As for the metrics that stood out in our discounted cash flow analysis of Darling Ingredients Inc, consider:
The company's balance sheet shows it gets 87% of its capital from equity, and 13% of its capital from debt. Notably, its equity weight is greater than 65.79% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
DAR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 26.36% of tickers in our DCF set.
Darling Ingredients Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.71. This coverage rate is greater than that of 73.78% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Darling Ingredients Inc? See PFGC, WBA, EPC, LNDC, and HMHC.
Darling Ingredients Inc. (NYSE: DAR) today announced that its Rousselot brand, the global leader of collagen-based solutions, introduces Peptan® Marine collagen peptides at the virtual Beauty & Skincare Formulation Conference 2021. Sourced from 100% wild-caught marine white fish and certified by the Marine Stewardship Council (MSC), this solution can help beauty and nutrition brands differentiate and expand their portfolio with sustainably sourced, premium nutricosmetics and dietary supplements. Produced in the state-of-the-art Rousselot facilities in France, Peptan® Marine can help manufacturers deliver high-quality, safe, sustainable and fully traceable marine collagen solutions that integrate with today's conscientious consumers' purchasing preferences.
According to the new market research report "Pharmaceutical Gelatin Market by Source (Porcine, Bovine Skin, Bovine Bone, Fish, Poultry), Application (Hard Capsule, Soft Capsule, Tablet, Absorbable Hemostat), Function (Stabilizing, Thickening, Gelling), Region - Global Forecast to 2025", published by MarketsandMarkets™,
The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as […]