Darling Ingredients Intrinsic Stock Value – Darling Ingredients Reports Impressive Earnings Results for Q3 of 2023
November 30, 2023
☀️Earnings Overview
On November 7 2023, DARLING INGREDIENTS ($NYSE:DAR) reported its earnings results for the third quarter of fiscal year 2023, ending September 30 2023. Total revenue for this quarter amounted to USD 1625.2 million, a 7.0% decrease from the same period in the previous year. Net income saw a drop of 34.6%, falling to USD 125.0 million year over year.
Stock Price
Tuesday saw Darling Ingredients, Inc. report impressive earnings results for Q3 of 2023, with a stock opening at $43.8 and closing at $43.7, a drop of 0.8% from its prior closing price of 44.1. The strong earnings report was underpinned by the company’s extensive operations in the global food ingredients market. Through product innovation and a focus on sustainability, Darling Ingredients has continued to make significant progress in the sector and deliver strong financial results. The company has seen revenue increase significantly over the past 3 quarters, as well as a rise in gross profit margin. This is largely due to the strong sales of their core products, such as animal feed and biodiesel.
Furthermore, the company has seen success in their new product lines, such as plant-based proteins and fermentation ingredients, which has contributed to their growth in the sector. The company has also made substantial investments in research and development in order to stay ahead of the competition, with the aim of becoming the industry leader in providing innovative and sustainable food ingredients solutions. As such, these investments have paid off as Darling Ingredients continues to position itself as a major player in the international market for food ingredients. As Darling Ingredients continues to invest heavily in research and development, it is clear that they have what it takes to remain a leader in the global food ingredients market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Darling Ingredients. More…
| Total Revenues | Net Income | Net Margin |
| 6.94k | 719.77 | 10.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Darling Ingredients. More…
| Operations | Investing | Financing |
| 857.59 | -1.7k | 897.85 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Darling Ingredients. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.81k | 6.34k | 27.46 |
Key Ratios Snapshot
Some of the financial key ratios for Darling Ingredients are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 26.7% | 65.9% | 15.3% |
| FCF Margin | ROE | ROA |
| 4.9% | 15.1% | 6.1% |
Analysis – Darling Ingredients Intrinsic Stock Value
At GoodWhale, we have conducted a thorough analysis of DARLING INGREDIENTS and created a proprietary Valuation Line based on its fundamentals. Our assessment of the company’s intrinsic value has determined that each share is worth approximately $88.7. Currently, the market is trading DARLING INGREDIENTS stock at $43.7, which means it is undervalued by 50.7%. This presents a great opportunity for investors to purchase the stock and benefit from its potential gains. More…
Peers
The company produces a variety of ingredients for the food, beverage, and animal feed industries. Darling Ingredients Inc has a number of competitors, including Guilin Seamild Foods Co Ltd, Kore Foods Ltd, and Slantcho AD.
– Guilin Seamild Foods Co Ltd ($SZSE:002956)
Guilin Seamild Foods Co Ltd is a market leader in the production of rice-based food products in China. The company has a strong market presence in the domestic market and is also expanding its operations in the international market. The company has a market capitalization of 2.95 billion as of 2022 and a return on equity of 4.39%. The company is engaged in the production of a wide range of rice-based food products, including rice noodles, rice cakes, and rice crackers. The company has a strong research and development team that is constantly innovating new products to meet the changing needs of the market. The company is well-positioned to continue its growth in the future.
– Kore Foods Ltd ($BSE:500458)
Kore Foods Ltd is a food company that produces and sells food products. The company has a market cap of 156.58M as of 2022 and a Return on Equity of -46.07%. Kore Foods Ltd’s products include processed meats, poultry, and seafood; and prepared meals. The company sells its products through supermarkets, hypermarkets, and convenience stores in the United Kingdom, the United States, Canada, Australia, New Zealand, and internationally.
Summary
Investors should take caution when considering investing in Darling Ingredients after the company reported their Q3 earnings results for FY2023. Revenue for the quarter decreased by 7.0% year-over-year to USD 1625.2 million, and net income decreased by 34.6%. This highlights a potential for diminishing returns for Darling Ingredients and suggests that caution is warranted when looking to invest in the company. Investors should keep a close eye on the company’s performance over the coming quarters in order to see if they can return to their previous levels of profitability.
