Board changes add another layer to Darling Ingredients story

Darling Ingredients (DAR) is drawing attention after fourth quarter 2025 results beat expectations across all segments, combined with regulatory support for green fuels and expansion into specialty ingredients via the Nextida joint venture.

On February 25, 2026, the company added another development, announcing long time board member and current lead director Gary Mize will retire at the 2026 Annual Meeting, while appointing former Cargill executive Robert Aspell as an independent director.

Those board moves land while the share price has climbed 45.88% on a 90 day basis and 41.66% year to date, with a 59.21% total shareholder return over 1 year contrasting with weaker 3 and 5 year total shareholder returns. This suggests momentum has recently picked up from a softer long term record.

If this focus on green fuels and specialty ingredients has your attention, it could be a good moment to widen the lens and check out 24 power grid technology and infrastructure stocks as another way to find related infrastructure ideas.

With Darling Ingredients up 59.21% over the past year and trading at US$53.32, plus a 15.99% gap to the average analyst target of US$61.85, is there still an entry point here, or is the market already pricing in future growth?

Most Popular Narrative: 12.3% Overvalued

At $53.32, Darling Ingredients sits above the most widely followed fair value estimate of $47.46, which is built using a 6.96% discount rate and detailed earnings projections.

Ongoing expansion into high growth, high margin specialty ingredients via the Nextida JV and rising global demand for health & wellness products (e.g., collagen, functional peptides), backed by scientific validation and early repeat orders, is expected to meaningfully broaden Darling's product portfolio, diversify revenues, and drive Food segment EBITDA growth starting in 2026.

Want to see what sits behind that growth story, and how it translates into margins, earnings and valuation multiples over time? The full narrative spells out the revenue path, profit mix and future P/E assumptions that underpin this fair value call, so you can judge whether those building blocks feel realistic for you.

Result: Fair Value of $47.46 (OVERVALUED)

However, that story could change quickly if renewable fuel margins stay under pressure or if regulatory moves around RINs, SREs and RVOs break against expectations.

Another angle on value: DCF flips the story

While the narrative based fair value sits at $47.46 and flags Darling Ingredients as 12.3% overvalued, our DCF model paints a very different picture, with an estimate of future cash flow value of $166.13 a share. That implies a wide gap. Which story do you trust more: the cash flows, or the narrative assumptions?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Darling Ingredients for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 47 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If the mixed signals here leave you on the fence, now is a good time to weigh the potential benefits and the concerns yourself with 2 key rewards and 4 important warning signs.

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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.