Tate & Lyle (GB:TATE)
LSE:TATE
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Tate & Lyle
(LSE:TATE)
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Rating:65Neutral
Price Target:
547.00 p
▲(49.05% Upside)
Action:Reiterated
Date:05/24/26
The score is driven mainly by moderate financial performance (margin compression and higher leverage despite improved free cash flow), partially offset by strong technical momentum and supportive valuation (low P/E and solid yield). Earnings-call guidance is steady but highlights near-term headwinds (sub-target cash conversion and delayed bio-gums benefits).
Positive Factors
Successful CP Kelco integration
Completing the CP Kelco integration without customer disruption is a durable operational win: it preserves customer relationships, enables combined product offerings and cross-platform solutions, and materially raises the base for sustainable revenue synergies and long-term cross‑sell execution.
Negative Factors
Margin deterioration
A steep multi-year decline in net margin signals weakened earnings power and greater sensitivity to cost or volume shocks. Persistently lower margins reduce internal investment capacity and prolong the time required to deleverage after acquisitions, making returns more dependent on successful structural fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Successful CP Kelco integration
Completing the CP Kelco integration without customer disruption is a durable operational win: it preserves customer relationships, enables combined product offerings and cross-platform solutions, and materially raises the base for sustainable revenue synergies and long-term cross‑sell execution.
Read all positive factors
Tate & Lyle (TATE) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.17B
Dividend Yield5.27%
Average Volume (3M)2.61M
Price to Earnings (P/E)22.6
Beta (1Y)0.59
Revenue Growth15.55%
EPS Growth42.40%
CountryUK
Employees3,318
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.22
Shares Outstanding445,450,000
10 Day Avg. Volume2,809,626
30 Day Avg. Volume2,611,880
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.00
Price to Sales (P/S)0.80
P/FCF Ratio13.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£495.17Price Target Upside34.92% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.37
Revenue Forecast (FY)£2.01B
Tate & Lyle Business Overview & Revenue Model
Company Description
Tate & 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 segm...
How the Company Makes Money
Tate & Lyle makes money by selling specialty ingredient products and solutions to business customers (primarily food and beverage manufacturers) and recognizing revenue when control of those goods transfers under supply agreements and purchase ord...
Tate & Lyle Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: strong execution on integration, cost synergies and productivity, tangible pipeline growth and healthy liquidity contrast with disappointing like‑for‑like top‑line and EBITDA declines, a delayed bio‑gums benefit (~$20m phasing), one‑off integration charges and cash conversion below target. Management outlines clear actions to drive volume‑led growth and expects modest revenue growth in FY'27 (volume weighted to H2) with broadly flat EBITDA (excluding the bio‑gums timing impact), but near‑term performance remains exposed to tariffs, regional softness and cost pressures.Positive Updates
Integration of CP Kelco Completed
Integration of CP Kelco successfully completed without customer disruption; combination starting to gain traction with customers and enabling new cross-platform solutions.
Negative Updates
Like-for-Like Revenue and EBITDA Decline
On an adjusted like‑for‑like pro forma basis (as if CP Kelco completed 1 April 2024), revenue fell 3% and adjusted EBITDA fell 3% to GBP 415m, driven by muted market demand.
Read all updates
Q4-2026 Updates
Positive
Negative
Integration of CP Kelco Completed
Integration of CP Kelco successfully completed without customer disruption; combination starting to gain traction with customers and enabling new cross-platform solutions.
Read all positive updates
Company Guidance
Tate & Lyle’s guidance for the year to 31 March 2027 is for modest revenue growth on a constant‑currency basis with volume growth weighted to the second half and EBITDA broadly flat (before a c.$20m phasing impact from the rescheduled bio‑gums consolidation), assuming a limited impact from the Middle East and with cost inflation mitigated through procurement, productivity and selective pricing. Key numerical pointers: capex guidance GBP 110–130m (FY26 GBP125m); adjusted effective tax rate guided c.23–25% (FY26 23.9%, +130bps); a cash‑conversion target >75% (FY26 70%, free cash flow £164m); net debt £939m (down £22m) with leverage 2.3x (target 1–2.5x), weighted average cost of debt ~4% and maturity 4.7 years, and near‑£1bn liquidity including an $800m RCF extended to 2031. Operationally they expect continued delivery of synergies and growth: revenue synergies targeted at 10% of CP Kelco revenue (~$70m) by end FY29 (≈10% delivered to date; cross‑sell pipeline >$100m); cost‑synergy run‑rate of $50m by FY27 has been met a year early (c.$24m delivered last year); productivity added $53m this year (total $144m over 3 years) and the productivity target was raised from $150m to $200m by end FY28. For context, FY26 adjusted EBITDA was £415m (‑3% like‑for‑like), adjusted PBT £238m (‑5%), adjusted EPS 40.4p, exceptional pre‑tax charges £45m (cash outflow £48m) and the Board has kept the full‑year dividend flat at 19.8p (final 13.2p).Tate & Lyle Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
54
Neutral
Cash Flow
57
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.01B | 1.74B | 1.65B | 1.75B | 1.38B |
| Gross Profit | 364.00M | 706.00M | 851.00M | 733.00M | 514.00M |
| EBITDA | 352.00M | 254.00M | 345.00M | 279.00M | 168.00M |
| Net Income | 97.00M | 143.00M | 188.00M | 190.00M | 236.00M |
Balance Sheet | |||||
| Total Assets | 3.67B | 3.73B | 2.28B | 2.51B | 3.25B |
| Cash, Cash Equivalents and Short-Term Investments | 344.00M | 334.00M | 437.00M | 475.00M | 112.00M |
| Total Debt | 1.29B | 1.31B | 590.00M | 713.00M | 679.00M |
| Total Liabilities | 2.07B | 2.14B | 1.04B | 1.32B | 1.63B |
| Stockholders Equity | 1.60B | 1.59B | 1.24B | 1.19B | 1.62B |
Cash Flow | |||||
| Free Cash Flow | 122.00M | 43.00M | 98.00M | -12.00M | -45.00M |
| Operating Cash Flow | 238.00M | 164.00M | 208.00M | 66.00M | 103.00M |
| Investing Cash Flow | -121.00M | -630.00M | -20.00M | 835.00M | -113.00M |
| Financing Cash Flow | -106.00M | 367.00M | -215.00M | -598.00M | -247.00M |
Tate & Lyle Technical Analysis
Positive
367.00
Price Trends
404.91
Positive
389.76
Positive
399.41
Positive
Market Momentum
29.66
Positive
60.70
Neutral
34.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TATE, the sentiment is Positive. The current price of 367 is below the 20-day moving average (MA) of 481.27, below the 50-day MA of 404.91, and below the 200-day MA of 399.41, indicating a bullish trend. The MACD of 29.66 indicates Positive momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 34.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TATE.
Tate & Lyle Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £89.02M | 13.44 | 16.88% | 2.42% | 23.51% | 63.64% | |
68 Neutral | £13.04B | 13.93 | 8.44% | 2.98% | -2.16% | -24.87% | |
65 Neutral | £2.17B | 22.58 | 6.17% | 5.27% | 15.55% | 42.40% | |
64 Neutral | £70.30M | 5.87 | 50.02% | 3.14% | ― | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
44 Neutral | £20.77M | -10.47 | 520.55% | ― | 167.81% | 52.16% |
* Consumer Defensive Sector Average
GB:TATE
Tate & Lyle
491.40
-38.28
-7.23%
GB:ABF
Associated British Foods
1,864.00
-141.51
-7.06%
GB:ANP
Anpario
540.00
120.92
28.85%
GB:FVA
Fevara plc
135.75
-13.58
-9.09%
GB:SALT
MicroSalt plc
37.00
-45.50
-55.15%
Tate & Lyle Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresRegulatory Filings and Compliance
Tate & Lyle posts 2026 results and holds dividend steady
Positive
May 21, 2026
Tate Lyle has published its preliminary results for the year ended 31 March 2026 on its website and via the UK’s National Storage Mechanism, giving investors full access to its latest financial performance and operational update. The compan...
M&A TransactionsRegulatory Filings and Compliance
Tate & Lyle Confirms Conditional Takeover Approach from Ingredion
Positive
May 14, 2026
Tate Lyle has confirmed that U.S.-based Ingredion Incorporated has submitted a conditional proposal for a possible cash offer for the entire issued and to be issued share capital of the company. The approach, which follows a series of earlier con...
Regulatory Filings and Compliance
Tate & Lyle Confirms Updated Voting Rights and Share Capital
Neutral
May 1, 2026
Tate Lyle has updated the market on its voting rights and capital structure as of 30 April 2026, confirming an issued share capital of 476,741,519 ordinary shares, of which 31,294,579 are held in treasury without voting rights. As a result, the c...
Business Operations and StrategyFinancial Disclosures
Tate & Lyle Holds Outlook as CP Kelco Synergies Offset Muted Demand
Neutral
Feb 26, 2026
Tate Lyle reported third-quarter trading in line with expectations, with group revenue up 15% on a reported basis for the three months to 31 December 2025, driven largely by its combination with CP Kelco. On a pro forma basis, revenue declined 2%...
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.