Why Darling Ingredients’ expanded buyback and earnings are in focus

Darling Ingredients (DAR) is back on investors radar after two closely timed updates. The company lifted its share repurchase authorization to US$1b on August 5, 2026, along with the release of its latest quarterly results.

Despite the latest 1-day share price return declining 1.82% to US$59.41 and short-term pressure with the 90-day share price return down 6.38%, Darling Ingredients still has a very strong year-to-date share price return of 57.84% and a 1-year total shareholder return close to 100%. This points to strong momentum compared with its weaker 3 and 5 year total shareholder returns.

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Darling Ingredients now trades around US$59 while analyst targets and intrinsic estimates sit much higher. Is the stock already pricing in the buyback and strong earnings, or does fair value still sit well above today’s level?

Most Popular Narrative: 21.2% Undervalued

The most followed valuation narrative sees fair value for Darling Ingredients at $75.42, compared with the latest close at $59.41. That gap hinges on some very specific assumptions about growth, margins, and policy support for renewable fuels.

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.

Want to see why this narrative lifts Darling Ingredients well above today’s price? It leans on stronger margins, steadier revenue growth, and a lower future earnings multiple than many investors might expect.

Result: Fair Value of $75.42 (UNDERVALUED)

However, Darling Ingredients still faces real pressure from higher feedstock cost volatility and a leverage ratio above target, which could limit flexibility if conditions turn.

Next Steps

With sentiment on Darling Ingredients pulling in both directions, it makes sense to move quickly and test the narrative against the underlying data yourself. To see the full balance of potential upsides and the issues investors are watching, review the 5 key rewards and 1 important warning sign

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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.