Should Value Investors Buy Darling Ingredients (DAR) Stock?

By Zacks Equity Research | July 01, 2025, 9:40 AM

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Darling Ingredients (DAR). DAR is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 15.72, which compares to its industry's average of 15.84. DAR's Forward P/E has been as high as 18.57 and as low as 9.50, with a median of 11.94, all within the past year.

Another notable valuation metric for DAR is its P/B ratio of 1.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.99. Over the past 12 months, DAR's P/B has been as high as 1.49 and as low as 0.96, with a median of 1.27.

Finally, investors will want to recognize that DAR has a P/CF ratio of 8.93. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DAR's P/CF compares to its industry's average P/CF of 14.67. DAR's P/CF has been as high as 9.05 and as low as 5.45, with a median of 7.33, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Darling Ingredients is likely undervalued currently. And when considering the strength of its earnings outlook, DAR sticks out as one of the market's strongest value stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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