Darling International stock hits 52-week low at $32.53

Darling International Inc. (NYSE:DAR) stock has touched a 52-week low, dipping to $32.53 amid market fluctuations. According to InvestingPro data, the company maintains strong fundamentals with a current ratio of 1.38, indicating liquid assets exceed short-term obligations. This price level, reached during recent trading sessions, marks a significant downturn for the company when compared to its performance over the past year. Investors have witnessed a -22.53% change in the stock’s value over the last 12 months, with particularly sharp declines of -9.17% in the past week alone. Despite these challenges, analysts maintain optimism with price targets ranging from $43 to $65, suggesting potential upside. Get deeper insights and access to comprehensive analysis with InvestingPro’s detailed research reports, available for over 1,400 US stocks. The decline to this year’s low point underscores the volatility that the company, and its investors, have faced in an uncertain financial climate. Despite current market challenges, the company maintains profitability with $783.94 million in EBITDA over the last twelve months, and InvestingPro’s Fair Value analysis suggests the stock is currently undervalued.

In other recent news, Darling Ingredients reported fourth-quarter earnings that fell short of analyst expectations, with adjusted earnings per share at $0.63, slightly below the consensus of $0.64. The company’s revenue was $1.42 billion, missing the estimated $1.51 billion and down from $1.61 billion the previous year. Despite this, the company posted a net income of $101.9 million for the quarter, up from $84.5 million in the prior-year period. For the full year 2024, Darling reported net sales of $5.7 billion, a decrease from $6.8 billion in 2023, with net income totaling $278.9 million.

Additionally, Darling Ingredients announced the appointment of Soren Schroder, former CEO of Bunge (NYSE:BG) Global SA, as an independent director to its board. Schroder’s extensive experience in the agribusiness sector is expected to enhance the company’s strategic growth and market navigation. Meanwhile, Raymond (NSE:RYMD) James analyst Justin Jenkins reaffirmed a Strong Buy rating for Darling Ingredients, citing the company’s competitive edge in sustainable fuels and its joint venture, Diamond Green Diesel. Jenkins highlighted the potential for recovery and growth, particularly in renewable diesel and sustainable aviation fuel markets.

Moreover, Darling Ingredients expressed optimism for 2025, providing guidance for combined adjusted EBITDA between $1.25 billion and $1.30 billion. The company anticipates stronger performance, supported by robust raw material volumes and expectations for higher fat prices. Management also emphasized the successful startup of a sustainable aviation fuel unit in Texas, contributing to the company’s positive outlook.

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