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Tate & Lyle (GB:TATE)
LSE:TATE
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Tate & Lyle (TATE) AI Stock Analysis

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GB:TATE

Tate & Lyle

(LSE:TATE)

Rating:69Neutral
Price Target:
599.00p
▲(11.65% Upside)
Tate & Lyle's overall stock score reflects a stable financial position and positive strategic direction, bolstered by insider confidence and a focus on innovation. However, valuation concerns and technical resistance temper the outlook.

Tate & Lyle (TATE) vs. iShares MSCI United Kingdom ETF (EWC)

Tate & Lyle Business Overview & Revenue Model

Company DescriptionTate & Lyle PLC, together with its subsidiaries, provides ingredients and solutions to the food, beverage, and other industries in the United States, the United Kingdom, other European countries, and internationally. It operates through three segments: Food & Beverage Solutions, Sucralose, and Primary Products. The company offers texturants; nutritive sweeteners, such as high fructose corn syrup and dextrose; health and wellness ingredients; and stabilizers. It also provides industrial starches for paper, packaging, and industrial adhesives; acidulants, such as citric acid; and commodities comprising corn gluten feed and meal for animal nutrition, as well as corn oil and ethanol. In addition, the company engages in the treasury and insurance businesses; and provision of research and development services. Tate & Lyle PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyTate & Lyle generates revenue through the sale of its ingredients and solutions to food and beverage manufacturers, as well as other sectors such as pharmaceuticals. Key revenue streams include the sale of sweeteners like sucralose and other high-intensity sweeteners, starches, and specialty ingredients aimed at improving the texture, flavor, and health benefits of food products. The company also benefits from partnerships with food manufacturers and beverage companies, providing tailored solutions that enhance product offerings. Additionally, Tate & Lyle invests in innovation and sustainability initiatives, which not only help in reducing costs but also attract customers seeking healthier and more sustainable ingredients. The company's focus on research and development allows it to stay competitive and meet the evolving needs of its clients.

Tate & Lyle Earnings Call Summary

Earnings Call Date:May 22, 2025
(Q4-2025)
|
% Change Since: -8.78%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant strategic and financial achievements, including successful transformation into a growth-focused business, strong financial performance, and notable productivity savings. However, there are also challenges, such as revenue decline in certain segments, tariff-related uncertainties, and higher tax rates. Overall, the positive aspects seem to slightly outweigh the challenges.
Q4-2025 Updates
Positive Updates
Transformation into Growth-Focused Speciality Business
Tate & Lyle completed its structural transformation into a growth-focused speciality business following the combination with CP Kelco.
Strong Financial Performance
Revenue is up 7% on a compound annual growth rate basis over the last 5 years. EBITDA has grown by 10%, and EBITDA margins have expanded by 350 basis points.
Productivity Savings
Delivered $50 million in productivity savings, with operational and supply chain efficiencies contributing $33 million and cost management and SG&A savings accounting for $17 million.
Innovation and New Product Revenue
Revenue from new products grew by 9% on a like-for-like basis, with innovation being a key driver of customer solutions.
Strong Balance Sheet and Cash Flow
Net debt-to-EBITDA leverage at 31 March was 2.2x, with expectations to deleverage to the midpoint of the 1 to 2.5x range by the end of 2027 financial year. Adjusted free cash flow was GBP 190 million, GBP 20 million higher.
Negative Updates
Revenue Decline in Food & Beverage Solutions
Revenue in Food & Beverage Solutions was 7% lower, attributed to volume growth of 3% and decreases due to input cost deflation, mix, and price.
Tariff Uncertainty Impact
The imposition of trade tariffs, particularly between the U.S. and China, has increased costs for both Tate & Lyle and its customers, leading to uncertainty impacting revenue projections.
Exit from Tapioca Facility in Thailand
Net pretax exceptional charges were GBP 96 million, with GBP 59 million relating to the exit from the tapioca facility in Thailand.
Higher Effective Tax Rate
The adjusted effective tax rate was 22.6%, 150 basis points above the prior year, mainly due to CP Kelco's operations in higher tax jurisdictions.
Company Guidance
During the call, Tate & Lyle provided comprehensive guidance on its recent performance and future outlook, emphasizing the completion of its transformation into a growth-focused specialty business following the acquisition of CP Kelco. Over the past five years, the company has achieved a compound annual growth rate (CAGR) of 7% in revenue and 10% in EBITDA, with EBITDA margins expanding by 350 basis points. For the fiscal year ending March 2025, Tate & Lyle reported a 5% decrease in revenue and a 4% increase in EBITDA, resulting in an attractive EBITDA margin of 21%. The company highlighted significant investments in innovation, with over $370 million allocated to this area over five years, and reported a 9% increase in revenue from new products. The integration of CP Kelco is expected to yield revenue synergies equating to an additional 10% of CP Kelco's revenue over the medium term. Looking ahead, Tate & Lyle anticipates revenue growth at or slightly below the lower end of its 4% to 6% range for the coming year, with EBITDA growth expected to outpace revenue, driven by productivity improvements and cost synergies. The company also reported strong cash flow generation, with adjusted free cash flow reaching GBP 190 million, and maintained a solid balance sheet with net debt-to-EBITDA leverage at 2.2x.

Tate & Lyle Financial Statement Overview

Summary
Tate & Lyle demonstrates a stable financial position with consistent revenue growth and solid profitability margins. The company maintains moderate leverage, though there are areas for improvement in cash flow consistency and return on equity.
Income Statement
75
Positive
Tate & Lyle has shown a consistent revenue growth with a slight dip in the latest year. The gross profit margin and net profit margin are healthy, although the net profit margin has seen some volatility. EBIT and EBITDA margins indicate stable operational efficiency.
Balance Sheet
70
Positive
The company maintains a moderate debt-to-equity ratio, indicating balanced leverage. The return on equity has been reasonable but slightly declined, suggesting room for improvement in utilizing shareholder funds. The equity ratio is strong, reflecting a solid asset base relative to liabilities.
Cash Flow
65
Positive
Operating cash flow is positive, yet shows fluctuations, affecting free cash flow growth. The company has a stable operating cash flow to net income ratio, demonstrating its ability to convert earnings into cash efficiently.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue1.74B1.65B1.75B1.38B1.21B
Gross Profit706.00M851.00M496.00M339.00M303.00M
EBITDA254.00M345.00M300.00M145.00M209.00M
Net Income143.00M188.00M190.00M236.00M253.00M
Balance Sheet
Total Assets3.73B2.28B2.51B3.25B2.97B
Cash, Cash Equivalents and Short-Term Investments334.00M437.00M475.00M110.00M371.00M
Total Debt1.31B590.00M713.00M679.00M788.00M
Total Liabilities2.14B1.04B1.32B1.63B1.51B
Stockholders Equity1.59B1.24B1.19B1.62B1.45B
Cash Flow
Free Cash Flow43.00M98.00M40.00M-11.00M222.00M
Operating Cash Flow164.00M208.00M118.00M137.00M374.00M
Investing Cash Flow-630.00M-20.00M783.00M-147.00M-210.00M
Financing Cash Flow367.00M-215.00M-598.00M-247.00M-29.00M

Tate & Lyle Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price536.50
Price Trends
50DMA
531.43
Positive
100DMA
531.43
Positive
200DMA
584.29
Negative
Market Momentum
MACD
1.96
Positive
RSI
51.39
Neutral
STOCH
42.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TATE, the sentiment is Neutral. The current price of 536.5 is above the 20-day moving average (MA) of 535.60, above the 50-day MA of 531.43, and below the 200-day MA of 584.29, indicating a neutral trend. The MACD of 1.96 indicates Positive momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 42.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:TATE.

Tate & Lyle Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£1.09B20.7612.12%0.79%0.49%14.18%
76
Outperform
£16.18B12.8111.89%2.73%-0.38%14.68%
73
Outperform
£2.80B20.8714.14%1.93%4.77%18.94%
71
Outperform
£762.05M19.3812.74%4.06%-0.03%7.88%
70
Outperform
£1.62B13.159.02%1.49%1.01%11.12%
69
Neutral
£2.37B37.833.39%3.69%5.40%-67.46%
63
Neutral
$20.98B14.59-7.26%3.13%2.83%-9.85%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TATE
Tate & Lyle
536.50
-92.94
-14.77%
GB:ABF
Associated British Foods
2,273.00
-123.96
-5.17%
GB:CWK
Cranswick
5,240.00
685.08
15.04%
GB:HFG
Hilton Food
839.00
-92.97
-9.98%
GB:PFD
Premier Foods
188.00
18.21
10.73%
GB:GNC
Greencore
250.50
73.42
41.46%

Tate & Lyle Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Tate & Lyle Director Acquires ADRs, Signaling Confidence
Positive
Aug 11, 2025

Tate & Lyle PLC announced a transaction involving Glenn Fish, a Non-executive Director, who acquired 89.424 American Depositary Receipts (ADRs) at a price of US$29.31 each, representing an interest in 16,199.3 shares of the company. This transaction, conducted on the OTCQX exchange, reflects managerial confidence in the company’s prospects and complies with the Market Abuse Regulation, potentially impacting stakeholder perceptions positively.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Other
Tate & Lyle Director Acquires 2,500 ADRs, Signaling Confidence
Positive
Aug 5, 2025

Tate & Lyle PLC announced a transaction involving Claudia Vaz de Lestapis, a non-executive director, and Alexandre Samuel Pierre Marie de Lestapis, who acquired 2,500 American Depositary Receipts (ADRs) at a price of $28.84 each, representing an interest in 10,000 ordinary shares of the company. This transaction, conducted on the OTCQX exchange, reflects the ongoing engagement of key company figures in its financial instruments, potentially signaling confidence in the company’s market position and future prospects.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Regulatory Filings and Compliance
Tate & Lyle Announces Share Capital and Voting Rights Update
Neutral
Aug 1, 2025

Tate & Lyle PLC has announced its issued share capital as of July 31, 2025, consisting of 476,739,802 ordinary shares, with 31,294,579 held in Treasury and not carrying voting rights. The total number of voting rights available is 445,445,223, which shareholders can use to determine their interest in the company under the Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:TATE) stock is a Buy with a £1000.00 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Shareholder Meetings
Tate & Lyle PLC Passes All Resolutions at 2025 AGM Amid Shareholder Concerns
Neutral
Jul 24, 2025

At the 2025 Annual General Meeting, Tate & Lyle PLC announced that all proposed resolutions were passed, including the approval of the Directors’ Remuneration Policy and Report. Notably, 24.19% of shareholders voted against the Directors’ Remuneration Report, prompting the Board to engage further with shareholders to address concerns. The company will provide an update within six months, aligning with the UK Corporate Governance Code.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Regulatory Filings and Compliance
Tate & Lyle CFO Acquires Additional Shares
Positive
Jul 15, 2025

Tate & Lyle PLC announced that Sarah Kuijlaars, the Chief Financial Officer, has acquired 15,000 ordinary shares at a price of £5.185 each, increasing her total holding to 70,000 shares. This transaction, conducted on the London Stock Exchange, aligns with the Market Abuse Regulation requirements and reflects confidence in the company’s future prospects.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Business Operations and Strategy
Tate & Lyle Highlights Growth Strategy and Innovations at Capital Markets Event
Positive
Jul 1, 2025

Tate & Lyle PLC hosted a Capital Markets event in London to discuss its strategy and growth opportunities, emphasizing its role in the future of food. The event highlighted the company’s expanded portfolio and capabilities, including the integration with CP Kelco, which enhances its solutions offering. The company aims to accelerate top-line growth by addressing societal trends and investing in new technologies. The event did not provide new financial updates but showcased the company’s focus on healthier, more sustainable food solutions.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Other
BlackRock Reduces Stake in Tate & Lyle Below 5%
Neutral
Jun 13, 2025

Tate & Lyle PLC, a UK-based company, has announced a change in the voting rights held by BlackRock, Inc., an American multinational investment management corporation. BlackRock’s voting rights in Tate & Lyle have fallen below 5%, indicating a reduction in their stake in the company. This adjustment in BlackRock’s holdings may impact Tate & Lyle’s shareholder dynamics and influence within the market.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Executive/Board Changes
Tate & Lyle Grants Performance Share Awards to Key Executives
Neutral
Jun 11, 2025

Tate & Lyle PLC has announced the grant of awards over ordinary shares as part of its Performance Share Plan 2020 to key managerial personnel, including CEO Nick Hampton and CFO Sarah Kuijlaars. These conditional awards are contingent on meeting specific performance criteria over a three-year period, reflecting the company’s commitment to aligning management incentives with long-term performance goals.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Tate & Lyle Releases 2025 Annual Financial Report and AGM Notice
Neutral
Jun 5, 2025

Tate & Lyle PLC has announced the availability of its Annual Financial Report and the Notice of its Annual General Meeting (AGM) for 2025. The AGM is scheduled to take place on July 24, 2025, at the Royal College of Nursing in London. These documents have been submitted to the National Storage Mechanism and are accessible on the company’s website. This announcement ensures transparency and keeps shareholders informed of the company’s financial status and upcoming governance activities, reinforcing Tate & Lyle’s commitment to stakeholder engagement and regulatory compliance.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Tate & Lyle CEO Acquires Shares Under Bonus and Performance Plans
Neutral
Jun 5, 2025

Tate & Lyle PLC announced a transaction involving its Chief Executive, Nick Hampton, who acquired shares under the company’s Group Bonus Plan and Performance Share Plan. The transaction reflects the fulfillment of employment and performance conditions tied to these plans, impacting the executive’s shareholding in the company. This development underscores the company’s adherence to regulatory requirements and its commitment to aligning executive compensation with performance metrics.

The most recent analyst rating on (GB:TATE) stock is a Buy with a £1000.00 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Regulatory Filings and Compliance
Tate & Lyle Updates Share Capital and Voting Rights
Neutral
Jun 2, 2025

Tate & Lyle PLC announced its issued share capital as of May 30, 2025, totaling 476,739,452 ordinary shares, with 31,294,579 held in treasury and not carrying voting rights. This results in 445,444,873 voting rights, a figure that shareholders can use to assess their interest in the company under regulatory rules, potentially impacting shareholder notifications and transparency obligations.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Other
Tate & Lyle CFO Increases Stake with Share Purchase
Positive
May 28, 2025

Tate & Lyle PLC announced that Sarah Kuijlaars, the Chief Financial Officer, acquired 15,000 ordinary shares at £5.62498 each, totaling £84,374.70, on May 28, 2025. This transaction, conducted on the London Stock Exchange, increases her total shareholding to 55,000 shares, reflecting confidence in the company’s market position and future prospects.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Regulatory Filings and Compliance
Tate & Lyle Director’s Trust Acquires ADRs in Compliance with Market Regulations
Neutral
May 27, 2025

Tate & Lyle PLC announced a transaction involving the purchase of American Depositary Receipts (ADRs) by the Kimberly A Nelson Revocable Trust, a person closely associated with Kimberly A. Nelson, a director of the company. The transaction, which took place on May 23, 2025, involved the acquisition of 250 ADRs at a price of $30.40 each, representing an interest in 1,642 ADRs or 6,568 ordinary shares. This notification complies with the Market Abuse Regulation and reflects the company’s commitment to transparency in its managerial transactions.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £7.25 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Tate & Lyle CEO Exercises Share Options, Acquires 3,321 Shares
Positive
May 23, 2025

Tate & Lyle PLC announced that its CEO, Nick Hampton, has exercised options to acquire 3,321 ordinary shares under the Tate & Lyle 2020 Sharesave Scheme at a price of 542 pence per share. This transaction, conducted outside a trading venue, reflects the company’s adherence to the Market Abuse Regulation and highlights the CEO’s continued investment in the company, potentially signaling confidence in its future performance.

The most recent analyst rating on (GB:TATE) stock is a Hold with a £8.20 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Adjusts Stake in Tate & Lyle
Neutral
May 14, 2025

Tate & Lyle PLC has announced a change in major holdings, with BlackRock, Inc. adjusting its voting rights in the company. As of May 12, 2025, BlackRock’s total voting rights in Tate & Lyle have decreased from 5.45% to 5.25%. This change in holdings could impact the company’s shareholder dynamics and influence future strategic decisions, reflecting BlackRock’s ongoing adjustments in its investment strategy.

The most recent analyst rating on (GB:TATE) stock is a Buy with a £880.00 price target. To see the full list of analyst forecasts on Tate & Lyle stock, see the GB:TATE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 12, 2025