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Darling Ingredients Inc. (DAR) is the world's largest producer of sustainable natural ingredients from edible and inedible bio-nutrients. It is a pioneer in the production of renewable diesel via its Diamond Green Diesel joint venture.
Investment Thesis
Darling is a 'circular economy' giant masquerading as a boring industrial processor. They collect organic waste (like animal fats and used cooking oil) and turn it into high-value feed ingredients and renewable fuels. This is a business with no real competitors at scale. Their Diamond Green Diesel JV is the lowest-cost producer of renewable diesel in the world, benefiting from massive government subsidies and structural demand from the airline and trucking industries. Darling is the ultimate 'picks and shovels' play on global decarbonization, generating staggering cash flow that management is using to aggressively pay down debt and retire shares.
Key Growth Drivers
Renewable Diesel Super-Cycle
The global mandate for sustainable aviation fuel (SAF) and low-carbon diesel provides Darling with a multi-decade, price-insensitive demand source.
Irreplaceable Collection Network
Their global network of thousands of collection points for organic waste creates a massive barrier to entry and a low-cost feedstock advantage that competitors cannot match.
Vertical Integration Profitability
By controlling the waste feedstock and the fuel manufacturing, Darling captures the full margin of the renewable energy transition.
Valuation & Financial Modeling
DAR trades at an attractive multiple relative to its market leadership and growth potential. We believe the market is mispricing it as a cyclical commodity company, missing the 'infrastructure' value of its waste-to-fuel network. The stock offer significant re-rating potential.
Risk Factors & Bear Case
Changes in federal or state carbon-credit policies (like LCFS or RINs) are the primary risk. Additionally, any sharp decline in traditional diesel prices would hit the profitability of their renewable fuel division.
Conclusion
Darling Ingredients is an elite ESG compounder. It is a premier vehicle for playing the decarbonization of the global transportation fleet. Rated 'Strong Buy'.
Upcoming Catalysts
No upcoming catalysts identified.
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Relative to Consumer Staples Sector Median (N=180)
Metric
DAR
Benchmark
P/E Ratio
141.7x
+328%
EV/EBITDA
12.8x
+84%
Price / Book
2.1x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-43.7%
$34.51Spot: $61.27
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Staples sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
1.5%
Sector: 7.7%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, DARLING INGREDIENTS INC. (DAR) receives a "Buy" rating with a composite score of 52.9/100, ranked #46 out of 4446 stocks. Key factor scores: Quality 50/100, Value 55/100, Momentum 71/100. This is quantitative analysis only — not investment advice.
DARLING INGREDIENTS INC. (DAR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does DARLING INGREDIENTS INC. Do?
Darling Ingredients Inc. develops, produces, and sells natural ingredients from edible and inedible bio-nutrients. The company operates through three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. It offers ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries. The company also collects and transforms various animal by-product streams into useable and specialty ingredients, such as collagen, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstock, green energy, natural casings, and hides. In addition, it recovers and converts used cooking oil and animal fats, and residual bakery products into valuable feed and fuel ingredients. Further, the company provides environmental services, including grease trap collection and disposal services to food service establishments. It primarily operates under the Sonac, Dar Pro, Rothsay, Rousselot, Nature Safe, CleanStar, Peptan, Cookie Meal, Bakery Feeds, Ecoson, and Rendac brand names in North America, Europe, China, South America, Australia, and internationally. 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. DARLING INGREDIENTS INC. (DAR) is classified as a mid-cap stock in the Consumer Staples sector, specifically within the Food Products industry. The company is led by CEO Randall C. Stuewe and employs approximately 14,600 people, headquartered in Irving, Texas. With a market capitalization of $9.9B, DAR is one of the notable companies in the Consumer Staples sector.
DARLING INGREDIENTS INC. (DAR) Stock Rating — Buy (April 2026)
As of April 2026, DARLING INGREDIENTS INC. receives a Buy rating with a composite score of 52.9/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.DAR ranks #46 out of 4,446 stocks in our coverage universe. Within the Consumer Staples sector, DARLING INGREDIENTS INC. ranks #2 of 180 stocks, placing it in the top 10% of its Consumer Staples peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
DAR Stock Price and 52-Week Range
DARLING INGREDIENTS INC. (DAR) currently trades at $61.27. The stock lost $0.07 (0.1%) in the most recent trading session. The 52-week high for DAR is $57.96, which means the stock is currently trading 5.7% from its annual peak. The 52-week low is $26.00, putting the stock 135.7% above its annual trough. Recent trading volume was 2.4M shares, reflecting moderate market activity.
Is DAR Overvalued or Undervalued? — Valuation Analysis
DARLING INGREDIENTS INC. (DAR) carries a value factor score of 55/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 141.67x, compared to the Consumer Staples sector average of 33.11x — a premium of 328%. The price-to-book ratio stands at 2.08x, versus the sector average of 1.74x. The price-to-sales ratio is 1.64x, compared to 0.35x for the average Consumer Staples stock. On an enterprise value basis, DAR trades at 12.76x EV/EBITDA, versus 6.93x for the sector.
Overall, DAR's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
DARLING INGREDIENTS INC. Profitability — ROE, Margins, and Quality Score
DARLING INGREDIENTS INC. (DAR) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 1.5%, compared to the Consumer Staples sector average of 7.7%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 0.7% versus the sector average of 3.1%.
On a margin basis, DARLING INGREDIENTS INC. reports gross margins of 24.1%, compared to 26.2% for the sector. The operating margin is 4.9% (sector: 2.9%). Net profit margin stands at 1.2%, versus 1.6% for the average Consumer Staples stock. Revenue growth is running at 13.3% on a trailing basis, compared to 3.1% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
DAR Debt, Balance Sheet, and Financial Health
DARLING INGREDIENTS INC. has a debt-to-equity ratio of 114.0%, compared to the Consumer Staples sector average of 72.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.50x, suggesting adequate working capital coverage. Total debt on the balance sheet is $4.10B. Cash and equivalents stand at $91M.
DAR has a beta of 0.89, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for DARLING INGREDIENTS INC. is 62/100, reflecting average volatility within the normal range for its sector.
DARLING INGREDIENTS INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, DARLING INGREDIENTS INC. reported revenue of $6.09B and earnings per share (EPS) of $0.40. Net income for the quarter was $71M. Gross margin was 24.1%. Operating income came in at $295M.
In FY 2025, DARLING INGREDIENTS INC. reported revenue of $6.14B and earnings per share (EPS) of $0.40. Net income for the quarter was $70M. Gross margin was 24.0%. Operating income came in at $273M.
In Q3 2025, DARLING INGREDIENTS INC. reported revenue of $1.56B and earnings per share (EPS) of $0.12. Net income for the quarter was $21M. Gross margin was 24.8%. Operating income came in at $72M.
In Q3 2026, DARLING INGREDIENTS INC. reported revenue of $1.56B and earnings per share (EPS) of $0.12. Net income for the quarter was $21M. Gross margin was 24.8%. Revenue grew 0.0% year-over-year compared to Q3 2025. Operating income came in at $72M.
Over the past 8 quarters, DARLING INGREDIENTS INC. has demonstrated a growth trajectory, with revenue expanding from $1.38B to $6.09B. Investors analyzing DAR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
DAR Dividend Yield and Income Analysis
DARLING INGREDIENTS INC. (DAR) does not currently pay a dividend. This is common among smaller companies in the Food Products industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Staples dividend stocks may want to explore other Consumer Staples stocks or use the stock screener to filter by dividend yield.
DAR Momentum and Technical Analysis Profile
DARLING INGREDIENTS INC. (DAR) has a momentum factor score of 71/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 29/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
DAR vs Competitors — Consumer Staples Sector Ranking and Peer Comparison
Comparing DAR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full DAR vs S&P 500 (SPY) comparison to assess how DARLING INGREDIENTS INC. stacks up against the broader market across all factor dimensions.
DAR Next Earnings Date
No upcoming earnings date has been announced for DARLING INGREDIENTS INC. (DAR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy DAR? — Investment Thesis Summary
The bull case for DARLING INGREDIENTS INC. rests on several quantitative strengths. Price momentum is positive at 71/100, suggesting the trend favors buyers. Low volatility (stability score 62/100) reduces downside risk.
In summary, DARLING INGREDIENTS INC. (DAR) earns a Buy rating with a composite score of 52.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on DAR stock.
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Execution Benchmarks audit
Revenue Growth
YOY expansion rate
13.3%
Sector: 3.1%
+322% VS SCTR
Gross Margin
Core pricing power
24.1%
Sector: 26.2%
IN LINE
Operating Margin
Operating efficiency
4.9%
Sector: 2.9%
+69% VS SCTR
Net Margin
Bottom-line conversion
1.2%
Sector: 1.6%
-29% VS SCTR
Return on Equity
Equity capital efficiency
1.5%
Sector: 7.7%
-81% VS SCTR
Return on Assets
Asset base utilization
0.7%
Sector: 3.1%
-78% VS SCTR
Debt/Equity
Financial leverage load
114.0%
Sector: 72.0%
-58% VS SCTR
Dividend Yield
Direct cash return
0.0%
Sector: 0.4%
-100% VS SCTR
+20%
Price / Sales
1.6x
+362%
DARLING INGREDIENTS INC. exhibits a 198% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.7%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
24.1%
Sector: 26.2%
Operating Margin
Core business profitability
4.9%
Sector: 2.9%
Net Margin
Bottom-line profitability
1.2%
Sector: 1.6%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.