Darling Ingredients (DAR), mcap=$11.4bn, price $70.33 vs $69.49

– Renderer/repurposer of animal by-products with 15% global share and JV investment into Renewable Diesel refiner.
– High entry barrier business.
– EBITDA growth from the recently completed acquisition as well as investments in capacity expansion for the renewable diesel segment.
– Good inflation hedge as the price for its products move in concert with oil and agriculture products.

Valuation: Using 8.5x multiple on $2.1bn ’23 EBITDA (vs $1.5bn guidance for ’22), results in $98/share target.

Exp. gain: +40% to $98/share.

Full $DAR write-up (free guest account required): https://www.valueinvestorsclub.com/idea/DARLING_INGREDIENTS_INC/3834826484

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