DAR

Pitch Summary

Darling Ingredients (DAR) was a top contributor in the SMID Cap strategy in the fourth quarter. DAR is the largest publicly traded company turning edible by-products and food waste into sustainable products and a leading producer of renewable energy. Darling has faced significant headwinds over the past couple of years, and the stock traded within a fairly tight range of $30-40 over the past twelve months. This downturn is, in our opinion, at or near a bottom. We see several fundamental and regulatory changes supporting our view that top line and bottom-line results will inflect higher in 2026. Recent announcements from Washington and from the company are supportive of our view. The base Food and Feed businesses are providing support for the struggling Fuel business – a natural hedge we have long discussed. In addition, the company’s vertically integrated supply chain and low-cost position have proven resilient in the face of such headwinds. We expect results for 4q25 to be challenged and believe this reality is accounted for in today’s share price. As the cycle turns, the operational improvements made over the past couple of years together with an upgraded asset base will, in our opinion, provide a boost to operating profitability and discretionary cash flow. While frustrated with the performance over the past couple of years, we were pleased to see stabilization in the business and the stock price in recent quarters and believe some meaningful relief is on the horizon.

BSD Analysis

Darling is the undisputed heavyweight of the "Waste-to-Wealth" cycle, turning animal byproducts into the low-carbon fuel that the airline industry is desperate for. Their Diamond Green Diesel joint venture is a literal goldmine in 2026, benefiting from a massive spike in Sustainable Aviation Fuel (SAF) mandates across Europe and the U.S. While commodity price swings create volatility, the firm's vertical integration from slaughterhouse to fuel pump provides a moat that competitors can’t touch. It’s a messy business with a beautiful bottom line, acting as the ultimate ESG-friendly engine for the global energy transition.

Original Source

https://www.buysidedigest.com/bsd-letter/?letter=southernsun-smid-cap-2025-q4

公司名字

Darling Ingredients Inc.

主要经营地

北美/欧洲/全球原料网络

详细的生意模式

收集并加工动物副产品、废食用油等，卖给饲料、食品配料、生物柴油/可再生柴油链条

护城河

原料收集网络、规模经济、处理资质、长期客户关系

估值水平

FCF/EV≈2.8%（按 YB）

EV/Market Cap

1.50x

网络观点

原文看好其渲染/回收主业韧性，并认为 EPA 政策与 DGD 改善会带来利润修复

AI的观点

官方 FY2025 结果显示公司仍在进行业务重组，且与 Tessenderlo 整合胶原/明胶业务；我的判断是：主业网络型护城河是真实的，但短期估值能否抬升仍取决于 renewable diesel economics，而这比传统价值股更像政策/价差驱动。 (Darling Ingredients)

作者简介

基金通讯作者；YellowBrick 标记：非专业投资者/非顶级作者；历史总回报 18.0%（1 笔）