Darling Ingredients (DAR) As Renewable Diesel Policy Hopes Shape An Undervalued View

Darling Ingredients (DAR) has been drawing attention after a stretch of mixed recent performance. The stock is roughly flat over the past month and shows a recovery over the past three months.

At a share price of $61.74, Darling Ingredients has cooled off in the very short term, with a 7-day share price return of down 7.14%. However, the 90-day share price return of 17.6% and year-to-date share price gain of 64.03% point to momentum that has been building over 2024. The 1-year total shareholder return of 96.44% highlights how dividends and reinvestment have amplified that move for longer-term holders.

Scan how Darling Ingredients stacks up against other potential momentum stories by reviewing the hand-picked names in the 30 high quality undervalued stocks.

Darling Ingredients has a long operating history and a clear niche in turning waste into usable products. After such a strong 2024 run, the real question is whether the current price still reflects a fair deal for new money.

Most Popular Narrative: 21% Undervalued

Against a last close of $61.74, the most followed narrative pegs Darling Ingredients at a fair value of about $78.58, which implies a material valuation gap that investors are trying to explain through policy support, margin forecasts, and capital allocation plans.

Policy changes favoring U.S.-sourced renewable diesel feedstocks (higher domestic fat prices, reduced foreign competition) and increasing U.S. biofuel mandates are expected to structurally expand demand and improve pricing power in Darling's Feed and Fuel segments, which should drive higher revenue and margin expansion through 2026 and beyond.

See why 10 investors see Darling Ingredients as 21% undervalued.

Result: Fair Value of $78.58 (UNDERVALUED)

Still, Darling Ingredients depends heavily on supportive renewable diesel policy and faces leverage and feedstock cost pressures that could quickly challenge this undervalued thesis.

Find out about the key risks to this Darling Ingredients narrative.

Next Steps

Mixed views on Darling Ingredients so far. If you want to move quickly and decide for yourself, go straight to the 5 key rewards and 2 important warning signs.

Looking for more Darling Ingredients investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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