Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Darling International as such a stock due to the following factors:
- DAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.4 million.
- DAR traded 33,910 shares today in the pre-market hours as of 9:30 AM.
- DAR is up 3.4% today from yesterday's close.
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More details on DAR:
Darling International Inc. provides rendering, used cooking oil, and bakery residual recycling and recovery solutions to the food industry. The company operates in two segments, Rendering and Bakery. DAR has a PE ratio of 21.4. Currently there are 3 analysts that rate Darling International a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Darling International has been 2.1 million shares per day over the past 30 days. Darling International has a market cap of $2.5 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.74 and a short float of 2.8% with 0.46 days to cover. Shares are up 30.7% year-to-date as of the close of trading on Tuesday.
rates Darling International as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- DAR's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.81 is somewhat weak and could be cause for future problems.
- DAR, with its decline in revenue, slightly underperformed the industry average of 0.2%. Since the same quarter one year prior, revenues slightly dropped by 6.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- DARLING INTERNATIONAL INC's earnings per share declined by 25.8% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, DARLING INTERNATIONAL INC reported lower earnings of $1.10 versus $1.47 in the prior year. For the next year, the market is expecting a contraction of 4.5% in earnings ($1.05 versus $1.10).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Food Products industry. The net income has significantly decreased by 25.6% when compared to the same quarter one year ago, falling from $37.17 million to $27.65 million.
- You can view the full Darling International Ratings Report.