Darling Ingredients (DAR): Assessing Valuation After Recent Share Price Recovery Bounce

Darling Ingredients (DAR) has quietly put together a solid stretch of returns, with the stock up about 5% over the past month and roughly 17% in the past 3 months.

See our latest analysis for Darling Ingredients.

That recent 16.6% 3 month share price return looks more like a recovery bounce than a breakout, especially when you set it against a flat 1 year total shareholder return and weak longer term figures.

If Darling Ingredients has you rethinking where the next leg of growth might come from, it could be worth exploring fast growing stocks with high insider ownership as a fresh source of ideas.

With modest recent gains, stronger earnings growth and a sizeable discount to analyst targets and some intrinsic value estimates, the key question now is whether Darling is genuinely undervalued or if the market is already pricing in its future growth.

Most Popular Narrative Narrative: 22.1% Undervalued

Against a last close of $36.61, the most followed narrative points to a fair value near $47, implying meaningful upside if its assumptions play out.

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.

Read the complete narrative.

Curious how modest top line growth, a sharp margin reset and a lower future earnings multiple can still add up to double digit upside? The full narrative connects those moving pieces.

Result: Fair Value of $47 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, unresolved renewable fuel policy decisions and persistent margin pressure in the DGD joint venture could quickly undermine the upside case.

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

Build Your Own Darling Ingredients Narrative

If you would rather dig into the numbers yourself or challenge these assumptions, you can quickly build a personalized Darling Ingredients view in under three minutes, Do it your way.

A great starting point for your Darling Ingredients research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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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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