Is Darling Ingredients Inc. (DAR) A Good Stock To Buy Now?

Is DAR a bully banal to buy? We came crossed a bullish thesis on Darling Ingredients Inc. connected Valueinvestorsclub.com by FreeFlow. In this article, we volition summarize the bulls’ thesis connected DAR. Darling Ingredients Inc.'s stock was trading astatine $60.34 arsenic of June 2^nd. DAR’s trailing and guardant P/E were 43.80 and 17.12 respectively according to Yahoo Finance.

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Darling Ingredients is simply a vertically integrated planetary renderer of carnal fats and utilized cooking oil, converting bio-based feedstocks into fuels, provender ingredients, and specialty collagen products crossed a web of much than 80 facilities worldwide. Its Fuel Ingredients segment, anchored by the 50% owned Diamond Green Diesel associated task with Valero, represents the cardinal net driver, with capableness of ~1.2 cardinal gallons by 2026, including renewable diesel and sustainable aviation fuel.

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The caller EPA Set 2 regularisation finalized connected March 27, 2026 materially tightens Renewable Fuel Standard by expanding blending obligations to ~27 cardinal RINs, reallocating tiny refinery exemptions astatine 70%, and delaying the restrictive half-RIN regularisation to 2028, collectively creating a structural shortage of 3 cardinal D4 RINs versus 2025 levels. This imbalance forces marginal high-cost biodiesel producers to bid up RIN prices, lifting profitability crossed the compliance system.

As a low-cost shaper with advantaged entree to tallow and utilized cooking oil, Darling captures widening margins arsenic recognition prices rise, dissimilar soybean-based competitors facing higher feedstock costs. The DGD level unsocial is expected to lend astir $0.9 cardinal of EBITDA, supporting full 2026 EBITDA adjacent $2 cardinal including the resilient provender and nutrient segments.

Under blimpish valuation scenarios, the banal implies 70% upside to ~$100 per stock astatine 10x EBITDA, and up to ~100% upside to ~$120 per stock astatine humanities 11.5x multiples, with further LFCF-based upside of 60–135% depending connected output assumptions. Additional tailwinds see elevated substance prices and imaginable geopolitical disruptions, reinforcing borderline resilience and currency generation.

Previously, we covered a bullish thesis connected Darling Ingredients Inc. (DAR) by Elliot successful March 2025, which highlighted DAR’s vertically integrated waste-to-value model, flexible allocation crossed feed, food, and substance segments, and valuation upside driven by EBITDA betterment and sum-of-the-parts re-rating. DAR’s banal terms has appreciated by astir 67.19% since our coverage. FreeFlow shares a akin presumption but emphasizes EPA Set 2-driven RIN tightening and resulting borderline expansion.