Darling Ingredients (DAR) Upgraded From Hold to Buy
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NEW YORK (TheStreet) -- Darling Ingredients (DAR) - Get Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
TheStreet Ratings team rates DARLING INGREDIENTS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DARLING INGREDIENTS INC (DAR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DAR's very impressive revenue growth greatly exceeded the industry average of 1.1%. Since the same quarter one year prior, revenues leaped by 133.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 210.9% when compared to the same quarter one year prior, rising from $22.49 million to $69.94 million.
- DARLING INGREDIENTS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DARLING INGREDIENTS INC reported lower earnings of $0.39 versus $0.90 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.39).
- The debt-to-equity ratio of 1.10 is relatively high when compared with the industry average, suggesting a need for better debt level management. Even though the debt-to-equity ratio is weak, DAR's quick ratio is somewhat strong at 1.12, demonstrating the ability to handle short-term liquidity needs.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Food Products industry and the overall market, DARLING INGREDIENTS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: DAR Ratings Report