Darling Ingredients Inc. (DAR): A Bull Case Theory

We came crossed a bullish thesis on Darling Ingredients Inc. on The Few Bets That Matter’s Substack. In this article, we volition summarize the bulls’ thesis on DAR. Darling Ingredients Inc.'s share was trading astatine $52.68 as of February 24th. DAR’s trailing and forward P/E were 135.08 and 9.48 respectively according to Yahoo Finance.

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Darling Ingredients (DAR) is the world’s largest renderer, converting carnal byproducts similar fats, bones, grease, and utilized cooking lipid from slaughterhouses, restaurants, and nutrient processors into usable products crossed the food-to-fuel chain. The institution operates done 3 segments: Feed, producing carnal provender ingredients; Food, supplying collagen and gelatin for nutrient and pharmaceutical applications; and Fuel, providing renewable diesel feedstocks. Additionally, Darling owns a 50% involvement successful Diamond Green Diesel, a associated task with Valero, further expanding its renewable diesel accumulation capabilities.

This concern exemplary efficaciously turns discarded into value, offering products that stay successful request crossed each economical conditions, making DAR a antiaircraft concern astatine its existent valuation. Beyond defensiveness, the banal has maturation catalysts, astir notably regulatory tailwinds astir biofuels. Beginning successful aboriginal 2026, caller regulations volition necessitate lipid companies to acquisition importantly much greenish substance credits (RINs), creating accrued request for some Darling’s biofuel accumulation and the credits earned done its halfway rendering operations.

These regulatory changes, coupled with accelerating gross maturation and accordant demand, presumption Darling for a imaginable 30%–70% banal upside, corresponding to a 1.5x–2x income multiple. Technically, the banal appears to person completed a multi-year downtrend, forming a higher debased and an aboriginal breakout, suggesting charismatic introduction points astir $36–$40.

For investors, the setup offers some equity and options opportunities: selling puts astatine $30 and buying calls astatine $50–$55 provides a structured risk/reward aligned with the year-ahead regulatory-driven maturation narrative. While timing depends connected regulatory adoption, Darling represents a unsocial operation of antiaircraft characteristics, accelerating growth, and regulatory catalysts, making it a compelling concern with constricted downside and important upside potential.

Previously, we covered a bullish thesis on Darling Ingredients Inc. (DAR) by Elliot successful March 2025, which highlighted the company’s standard enactment successful converting carnal byproducts into feed, food, and fuel, its strategical acquisitions, and vertical integration done Diamond Green Diesel. DAR’s banal terms has appreciated by astir 45.96% since our coverage. The Few Bets That Matter shares a akin presumption but emphasizes regulatory tailwinds astir biofuels and greenish substance credits arsenic near-term maturation catalysts.