- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
- DAR's very impressive revenue growth greatly exceeded the industry average of 3.1%. Since the same quarter one year prior, revenues leaped by 109.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- DARLING INGREDIENTS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, DARLING INGREDIENTS INC reported lower earnings of $0.90 versus $1.10 in the prior year. This year, the market expects an improvement in earnings ($1.02 versus $0.90).
- In its most recent trading session, DAR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
- The debt-to-equity ratio of 1.20 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 1.14, demonstrating the ability to handle short-term liquidity needs.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. 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.
Darling Ingredients Inc. develops and produces natural ingredients from edible and inedible bio-nutrients worldwide. It offers a range ingredients and specialty products for customers in the pharmaceutical, food, pet food, feed, technical, fuel, bioenergy, and fertilizer industries. Darling Ingredients has a market cap of $3.37 billion and is part of the industrial goods sector and materials & construction industry. Shares are down 4.2% year to date as of the close of trading on Friday.