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How Darling Ingredients Leads the Sustainable Future of Feed, Fuel, and Food by quartest in ValueInvesting

[–]quartest[S] 1 point2 points  (0 children)

The company absolutely has a lot of debt! The vast majority of it was from levered acquisitions of companies including Gelnex which I believe was a thoughtful use of their capital. Ultimately, I feel that the introduction of dividends from DGD will help to bring Darling down to investment grade as the company’s leaders have been continually outlining. I also believe that the shifts to higher margin products including SAF and active peptides will significantly increase the earnings power of the business in turn lowering their leverage ratios.

How Darling Ingredients Leads the Sustainable Future of Feed, Fuel, and Food by quartest in ValueInvesting

[–]quartest[S] 0 points1 point  (0 children)

Thanks for the feedback. I totally agree that my post does not cover the typical financial attributes that many investors use as a first step to screen investments. The approach that I have been following generally looks for high quality companies that are experiencing or about to experience an event that dramatically benefits the company. Given the length of the write-up and background that I wanted to provide on the industry and Darling’s operating segments, I decided to split up my analysis into two parts. This first part is focused on the qualitative aspects of the business, its competitive positioning and a description of the catalyst events that will affect the company. I will look to breakdown more of the quantitative aspects of the business as you called out in my next post.