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What Should You Know About Darling Ingredients Inc’s (DAR) Future?

Darling Ingredients Inc (NYSE:DAR) is expected to deliver an underwhelming negative -17.62% in earnings growth per share over the next three years. Presently, with an EPS of $0.511, we can expect an upcoming EPS of $0.421. To determine whether this negative growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for DAR

Troubled times ahead

The next couple of years are a potential rough ride for Darling Ingredients. Analysts covering the company are expecting the EPS to drop down to $0.421, a significant decline from previous levels of around $0.511. In the same period and net income is predicted to dip from $84M to $69M in the next couple of years. Furthermore, margins look rather unappealing at the current levels of revenue and earnings.

NYSE:DAR Past Future Earnings Nov 7th 17
NYSE:DAR Past Future Earnings Nov 7th 17

Basis for the contraction

The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth is relatively reasonable or whether the negative outlook is too harsh. DAR’s earnings growth of -73.36% for the past five years shows an adverse and continuous trend of double-digit contraction in earnings growth. As a well-established company, DAR could be exhibiting signs of potential market share loss or obsolete products to sustain large negative growth over time.

Next Steps:

For DAR, there are three key aspects you should look at:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

2. Valuation: What is DAR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether DAR is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of DAR? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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