Darling Ingredients Inc ($DAR) Cautious Buy or Hold to $19 Confident Investor Rating: Fair

Company name Darling Ingredients Inc
Stock ticker DAR
Live stock price [stckqut]DAR[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Poor
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $21.48
Target stock price (averages with growth) $15.4
Target stock price (averages with no growth) $7.04
Target stock price (manual assumptions) $18.58

The following company description is from Google Finance: http://www.google.com/finance?q=dar

Darling Ingredients Inc., formerly Darling International Inc., is a developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a range of ingredients and customized specialty solutions for customers in the food, pet food, pharmaceutical, feed, fuel, bioenergy and fertilizer industries. The Company operates in three segments: Feed Ingredients, which includes the edible and inedible animal by-products, bakery and hides business lines; Food Ingredients, which includes the gelatin, casings and edible fats business lines, and Fuel Ingredients, which includes the biofuel and bioenergy business lines. With operations on five continents, the Company recycles all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, tallow, feed-grade fats, meat and bone meal, poultry meal, yellow grease, fuel feed stocks, green energy, natural casings and hides.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Darling Ingredients Inc as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I am removing the company from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Darling Ingredients Inc calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $13.86
  • Growth: 0.17
  • Current EPS (TTM): $0.39
  • P/E: 35
  • Future EPS Calc: $0.85
  • Future Stock Price Calc: $29.92
  • Target stock price: $18.58

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I hope that this makes you a Confident Investor.

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