Darling Ingredients has authorized a new $1 billion share repurchase program. The company has returned 94% over the past year and currently trades at a price-to-earnings ratio of 15.8 times, below the food industry average of 17.7 times and a peer average of 23.8 times. A fair P/E multiple for the stock based on its profile is estimated at 18.5 times, suggesting the shares are priced at a discount. The buyback is expected to support per-share metrics and market confidence, though questions around the durability of recent margin improvements may limit further re-rating.
Darling Ingredients IncAuthorizes $1B buyback, supporting per-share metrics and confidence.
