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IRVING, Texas - Darling Ingredients Inc. (NYSE: DAR), a global company specializing in transforming animal by-products into valuable commodities, has announced that the current international tariff environment is not expected to materially affect its business operations. The company, currently valued at $4.62 billion, operates a network of 260 facilities across five continents, with a strong presence in the U.S. where it primarily serves domestic markets. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, despite its shares declining by about 35% over the past year.
The company’s statement comes amid ongoing discussions about international trade policies and tariffs, which have created uncertainty in global markets. Despite this, Darling Ingredients has emphasized its ability to adapt quickly to market changes due to its vast geographic diversity and integrated supply chain. The company’s financial health appears robust, with a current ratio of 1.38 indicating strong short-term liquidity, and an impressive free cash flow yield of 11%.
A significant portion of the ingredients produced by the company in the U.S. are consumed within the country, which limits the company’s exposure to export markets that might be affected by tariffs, such as China. Darling Ingredients has a history of navigating through periods of market volatility, particularly those driven by commodity price fluctuations, and views the current situation as another such period that can be managed effectively.
The company remains confident in its ability to maintain and protect its margins by making the necessary adjustments. It also anticipates that global trade flows will eventually adjust and normalize. With its substantial international footprint and market agility, Darling Ingredients believes it is well-positioned to handle changes in trade policy and continue providing value to its customers and stakeholders. The company generated $5.72 billion in revenue over the last twelve months, with an EBITDA of $784 million, demonstrating its operational scale and efficiency.
Darling Ingredients has established itself as a leader in circularity, repurposing material from the animal agriculture and food industries into ingredients for human consumption, animal feed, and renewable energy. The company processes a significant portion of the world’s animal agricultural by-products and is one of the largest producers of renewable energy. Wall Street analysts maintain a bullish outlook on the company, with InvestingPro data showing a strong buy consensus recommendation of 1.5 out of 5. For deeper insights into Darling Ingredients’ financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports.
This press release includes forward-looking statements, which are based on current expectations, beliefs, and assumptions but are subject to risks and uncertainties. These statements should not be taken as guarantees of future performance, and the company does not commit to updating them in light of new information or future events.
The information presented is based on a press release statement from Darling Ingredients Inc.
In other recent news, Darling Ingredients reported fourth-quarter earnings that fell short of analyst expectations, with adjusted earnings per share at $0.63 compared to the consensus of $0.64, and revenue at $1.42 billion, missing the $1.51 billion estimate. Despite this, the company saw a positive investor reaction, attributed to a promising outlook and margin improvements across segments. UBS maintained its Buy rating on the company’s stock with a $58 target, noting potential upside in EBITDA figures due to market conditions. Meanwhile, Raymond James reiterated a Strong Buy rating, highlighting the company’s competitive edge in sustainable fuels and its strategic joint venture, Diamond Green Diesel.
Additionally, Darling Ingredients appointed Soren Schroder, former CEO of Bunge Global SA, as an independent director to its board. Schroder’s extensive experience in agribusiness is expected to bolster the company’s strategic growth and market navigation. The company also reported a full-year net income of $278.9 million on $5.7 billion in sales, with expectations for a stronger 2025, citing robust raw material volumes and higher fat prices. Analyst Derrick Whitfield from Texas Capital Securities acknowledged the company’s positive momentum, despite a lower than expected 2025 EBITDA guidance. Darling Ingredients’ strategic positioning and recent developments continue to draw analyst attention and investor interest.
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