IRVING, Texas - Darling Ingredients Inc. (NYSE: NYSE:DAR), a global leader in converting edible by-products into sustainable goods with a market capitalization of $5.6 billion, today revealed significant changes to its executive team. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, despite facing a challenging year with a 25.2% decline in its stock price year-to-date. Brad Phillips, the company's long-serving Executive Vice President and Chief Financial Officer, is set to retire on June 15, 2025, after 36 years with the company. Robert Day will step into the role of Executive Vice President and Chief Financial Officer following the filing of the company’s 2024 Form 10-K, expected on February 25, 2025. Sandra Dudley has been appointed as Executive Vice President, Renewables and Chief Strategy Officer, and Carlos Paz joins as Executive Vice President, Global Risk Management, Ingredients.
Phillips's retirement marks the end of a storied tenure during which he played a pivotal role in the company's growth and strategic acquisitions, helping build a business that now generates annual revenue of $5.9 billion. Randall C. Stuewe, Chairman and CEO of Darling Ingredients, acknowledged Phillips's valuable contributions and leadership. The company maintains a solid financial position with a healthy current ratio of 1.41, indicating strong ability to meet short-term obligations. As part of the transition, Phillips will remain with the company to assist Day, who joined Darling Ingredients in August 2023 and previously held executive roles at Ceres Global Ag. Corp. and Cargill, Incorporated.
Dudley, who has been with Darling Ingredients since 2015, will take over Day's former position. She has been instrumental in overseeing investments in the Diamond Green Diesel joint venture and managing various specialty operations within the company. Her prior experience includes strategic and financial roles at ConAgra Foods (NYSE:CAG) and Tenaska Marketing Ventures.
Paz is set to manage the company's global risk-taking and trading activities, focusing on commodity price fluctuations, supply chain disruptions, and market volatility. He brings over 20 years of leadership experience from Cargill, Incorporated, and most recently served as President and CEO of Ceres Global Ag. Corp.
Darling Ingredients operates over 260 facilities worldwide and is a key player in the production of collagen and renewable energy, processing a significant portion of the world's animal agricultural by-products. InvestingPro analysis reveals several key insights about the company's performance, with analysts maintaining a bullish consensus recommendation despite recent challenges. For deeper insights into Darling Ingredients' financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence. The information for this article is based on a press release statement and InvestingPro data.
In other recent news, Darling Ingredients has faced a series of developments. The company's Q3 results showed a decrease in net income to $16.9 million from $125 million in the same quarter of the previous year. Net sales also declined to $1.4 billion from $1.6 billion year-over-year. Despite these challenges, Darling Ingredients managed to reduce its total debt by approximately $192 million, ending the quarter with $4.246 billion in total debt.
TD Cowen maintained its Hold rating on Darling Ingredients with a consistent price target of $43.00, expressing concerns about the company's ability to meet its fourth-quarter and full-year 2025 guidance. The firm also pointed out that investors could be hesitant to engage with the company's stock due to uncertainty surrounding the 45Z tax credit.
In addition, the Biden administration's delay in finalizing the guidelines for the new clean fuel production tax credits has affected Darling Ingredients, among other biofuel companies. The delay is due to disagreements between agricultural lobbyists and environmentalists over ensuring the program meets its climate goals. This lack of guidance has left the industry uncertain about how to utilize the credits.
These are recent developments within Darling Ingredients. Despite the challenges, the company remains optimistic for 2025, expecting improved margins and demand, with a projected combined EBITDA of $1.15 billion to $1.175 billion for FY 2024.
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