| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 76 | 17.4x | 17.8x | Top tier | |
Growth | 68 | 14.9% | 7.1% | Top tier | |
Quality | 54 | 10.0% | 4.5% | Around median | |
Safety | 67 | 2.7x | 2.6x | Top tier | |
Capital Return | 74 | — | 2.12% | Top tier | |
Momentum | 96 | 75.7% | 2.9% | Top tier | |
Sentiment | 76 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Darling Ingredients Inc. transforms animal materials and food industry residuals into value-added ingredients across three interconnected businesses: Feed Ingredients, Food Ingredients, and Fuel Ingredients. The Feed Ingredients business benefits from selling fats and proteins to the biofuel, aquaculture, and pet food sectors, while the Food Ingredients business relies heavily on Rousselot and its gelatin, collagen, and targeted Nextida health ingredient products; the Fuel Ingredients business includes the company’s stake in Diamond Green Diesel, which produces renewable diesel and sustainable aviation fuel.
In fiscal Q2 2026, net sales reached $1.7 billion versus $1.5 billion a year earlier, and net income increased to $387 million from $13 million, while diluted GAAP earnings per share rose to $2.41 from $0.08. Combined adjusted EBITDA reached $742 million versus $250 million, split between $353 million from core ingredients and $389 million from Darling’s share of Diamond Green Diesel; this equates to a combined adjusted margin of approximately 43.6% of sales, with the caveat that this metric includes the joint venture’s results and does not represent a GAAP operating margin.
During the first half of fiscal 2026, Darling recorded sales of $3.3 billion versus $2.9 billion, and net income of $521.6 million versus a net loss of $13.5 million in the corresponding period. On a trailing twelve-month basis in 2026, EDGAR data showed revenue of $6.3 billion, gross profit of $1.6 billion, and net income of $223.3 million, compared with revenue of $6.1 billion, gross profit of $1.5 billion, and net income of $62.8 million in fiscal 2025.
The average analyst price target is $70, within a range of $65 to $75, with a consensus rating of “Buy”; the average is approximately at the upper end of the 52-week range of $29.15 to $69.98, while the highest target exceeds it by approximately 7%. This valuation requires continued strength at Diamond Green Diesel, improvement in core ingredients, and debt reduction, while the wide 52-week range and the reliance of part of fiscal Q2 2026 earnings on IEEPA refunds justify considering normalization risk alongside the positive consensus.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Net sales increased to $1.7 billion from $1.5 billion a year earlier, and net income jumped to $387 million from $13 million. Combined adjusted EBITDA reached $742 million versus $250 million, including $353 million from core ingredients and $389 million from Diamond Green Diesel. The improvement came from higher fat and protein prices, strong biofuel demand, improvements in contracts and operations, and Diamond Green Diesel’s performance. The results also included $51 million of IEEPA refunds at the project and a net $18 million at Rousselot.
Diamond Green Diesel produced approximately 356 million gallons in fiscal Q2 2026, and Darling sold approximately 350 million gallons at a margin of $2.23 per gallon. Darling’s share of the project’s adjusted EBITDA reached $389 million versus $43 million a year earlier, and it also received approximately $280 million in cash distributions from it. Management plans to produce approximately 335 million gallons in fiscal Q3 2026. Results remain sensitive to renewable diesel margins, RIN markets, and RVO policy, despite management describing the margin environment as attractive.
Automated analysis for informational purposes only — not investment advice.
Darling is shifting Rousselot’s mix from lower-margin gelatin toward collagen and targeted health ingredients using its existing production infrastructure. According to management, collagen generates margins 2.5 to 3 times those of gelatin, while targeted ingredients generate 7 to 11 times those margins. The Nextida glucose control product recorded repeat orders and began selling in Asia by fiscal Q2 2026. The company also approved a collagen spray dryer project in Kaiping, China, and the addition of extraction and drying capabilities in Paraguay.
The company reduced net debt by more than $220 million during fiscal Q2 2026, lowering its leverage ratio to approximately 2.3 times from 2.9 times at the end of fiscal 2025. This was achieved despite purchasing the Potenze assets in Brazil for approximately $122 million and repurchasing $73 million of shares. Management is targeting net debt near or below $3 billion and a leverage ratio well below 2 times by the end of fiscal 2026. The target is supported by the sale of most of the grease trap business for approximately $90 million on July 22, 2026, alongside expected cash flows from inventory, tax credits, and the sale of the European casings business.
Management expects adjusted EBITDA for core ingredients of between $325 million and $340 million in fiscal Q3 2026. This compares with $353 million in Q2, which included a net $18 million benefit from IEEPA refunds at Rousselot. Diamond Green Diesel also intends to produce approximately 335 million gallons during the quarter. The outlook is based on continued global demand for proteins, specialty products, and low-carbon fuels, while margins remain exposed to market and policy volatility.
The most significant risk is Diamond Green Diesel’s sensitivity to fuel prices, renewable diesel margins, RIN markets, and RVO decisions, because management said meeting the mandate requires margins to remain strong. Fiscal Q2 2026 also benefited from $51 million of IEEPA refunds at the project and $18 million at Rousselot, benefits that should not be assumed to recur. Feed Ingredients is affected by cycles in fat and protein prices, poultry production, and fishmeal availability. The fiscal 2026 maintenance capital expenditure estimate also increased from $400 million to $450 million, reducing some of the liquidity available for debt reduction or returns to shareholders.
