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 33th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Darling Ingredients Inc, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 7.72; that's higher than 67.49% of US stocks in the Consumer Defensive sector that have positive free cash flow.
Darling Ingredients Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 20.6% of tickers in our DCF set.
DAR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 20.6% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DAR, try YEWB, UVV, INGR, MKC, and CL.
IRVING, Texas, Sept. 1, 2020 /PRNewswire/ -- Darling Ingredients Inc. (NYSE: DAR), today announced the company's global sustainability strategy and its 2025 sustainability targets designed to enable company growth while improving sustainability performance. As a global corporation, our…
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Tristan R. Brown on Seeking Alpha | August 4, 2020
Darling Ingredients Inc. (NYSE: DAR), today announced that its Rousselot business, the global leader of collagen-based solutions, has successfully introduced X-Pure® GelMA at Bio Digital 2020. The first Good Manufacturing Practice (GMP)-ready range of gelatin methacryloyl (GelMA) biomaterials suitable for preclinical and clinical applications. X-Pure® GelMA is part of the X-Pure® portfolio of ultra-pure gelatins and collagens, suitable for use as biomaterials in 3D bioprinting, tissue engineering, and regenerative medicine.
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