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Tate & Lyle (GB:TATE)
LSE:TATE

Tate & Lyle (TATE) AI Stock Analysis

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Tate & Lyle

(LSE:TATE)

Rating:76Outperform
Price Target:
Tate & Lyle scores well due to its strong financial health, solid valuation, and positive corporate events, reflecting confidence in future prospects. However, declining revenue and mixed technical indicators suggest caution in the near term. The successful integration of CP Kelco and strategic initiatives further enhance its outlook.

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

Tate & Lyle Business Overview & Revenue Model

Company DescriptionTate & Lyle PLC is a global provider of food and beverage ingredients, specializing in sweeteners, texturants, and health and wellness solutions. The company operates in the food and beverage sector, offering a wide range of products that enhance the taste, texture, and nutritional profile of foods and drinks. Tate & Lyle serves customers worldwide, including manufacturers of food, beverages, pharmaceuticals, and industrial products.
How the Company Makes MoneyTate & Lyle makes money primarily through the sale of ingredients to the food and beverage industry. Its revenue model is based on two main segments: Food & Beverage Solutions and Sucralose. The Food & Beverage Solutions segment generates revenue by providing ingredients that improve the taste, texture, and health benefits of food and beverages, such as starches, sweeteners, and functional ingredients. The Sucralose segment derives income from the production and sale of sucralose, a zero-calorie sweetener used in various products. The company also benefits from strategic partnerships and collaborations with other businesses in the industry, which enhance its research and development capabilities and expand its market reach.

Tate & Lyle Earnings Call Summary

Earnings Call Date:May 22, 2025
(Q4-2025)
|
% Change Since: -7.79%|
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 presents a solid financial performance with strong profitability and a stable balance sheet. However, declining revenue raises concerns about future growth. The company exhibits efficient operations and effective cash flow management, supported by moderate leverage and robust equity ratios.
Income Statement
75
Positive
Tate & Lyle's income statement demonstrates stable profitability with a gross profit margin of 30.06% and a net profit margin of 11.42% for the latest period. However, the revenue has seen a decline over the past year, with a negative growth rate of -5.94%, which raises concerns about future growth. The company maintains a robust EBIT margin of 14.21% and an EBITDA margin of 20.95%, reflecting efficient operations.
Balance Sheet
80
Positive
The balance sheet of Tate & Lyle shows a healthy financial position with a debt-to-equity ratio of 0.48, indicating moderate leverage. The equity ratio stands at 54.25%, suggesting a strong equity base relative to assets. Return on equity is solid at 15.19%, showcasing effective management of shareholder funds.
Cash Flow
70
Positive
Cash flow analysis reveals a significant improvement in free cash flow, which grew by 145% from the previous year. The operating cash flow to net income ratio is 1.11, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is lower at 0.52, suggesting some room for improvement in converting earnings to free cash flow.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
1.56B1.65B1.75B1.38B1.21B2.88B
Gross Profit
1.56B851.00M496.00M339.00M303.00M892.00M
EBIT
187.00M207.00M226.00M166.00M157.00M317.00M
EBITDA
329.00M345.00M300.00M145.00M209.00M473.00M
Net Income Common Stockholders
251.00M188.00M190.00M236.00M253.00M245.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
289.00M437.00M475.00M110.00M371.00M271.00M
Total Assets
2.77B2.28B2.51B3.25B2.97B2.85B
Total Debt
690.00M590.00M713.00M679.00M788.00M722.00M
Net Debt
429.00M153.00M238.00M569.00M417.00M451.00M
Total Liabilities
1.44B1.04B1.32B1.63B1.51B1.45B
Stockholders Equity
1.33B1.24B1.19B1.62B1.45B1.40B
Cash FlowFree Cash Flow
171.00M98.00M40.00M-11.00M222.00M259.00M
Operating Cash Flow
282.00M208.00M118.00M137.00M374.00M425.00M
Investing Cash Flow
176.00M-20.00M783.00M-147.00M-210.00M-169.00M
Financing Cash Flow
-210.00M-215.00M-598.00M-247.00M-29.00M-273.00M

Tate & Lyle Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price556.00
Price Trends
50DMA
545.74
Positive
100DMA
567.57
Negative
200DMA
634.19
Negative
Market Momentum
MACD
-1.83
Positive
RSI
48.66
Neutral
STOCH
38.28
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 556 is below the 20-day moving average (MA) of 568.73, above the 50-day MA of 545.74, and below the 200-day MA of 634.19, indicating a neutral trend. The MACD of -1.83 indicates Positive momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 38.28 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBPFD
79
Outperform
£1.78B14.509.02%0.83%5.90%11.24%
78
Outperform
£113.94B23.8030.27%3.19%-0.76%-12.83%
GBABF
77
Outperform
£14.80B11.6611.89%3.05%-0.38%14.68%
76
Outperform
£2.45B39.243.39%3.47%-11.03%-2.05%
GBDGE
70
Outperform
$43.41B15.4435.82%3.91%-3.88%-11.33%
65
Neutral
$8.88B15.014.76%203.76%3.54%-2.49%
63
Neutral
£77.09B25.755.92%6.69%-5.19%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TATE
Tate & Lyle
556.00
-106.68
-16.10%
GB:DGE
Diageo
1,933.00
-587.55
-23.31%
GB:ULVR
Unilever
4,642.00
413.86
9.79%
GB:BATS
British American Tobacco
3,520.00
1,311.68
59.40%
GB:ABF
Associated British Foods
2,057.00
-384.06
-15.73%
GB:PFD
Premier Foods
207.00
44.12
27.09%

Tate & Lyle Corporate Events

Business Operations and Strategy
BlackRock Adjusts Stake in Tate & Lyle, Holding 5.45% Voting Rights
Neutral
May 1, 2025

Tate & Lyle PLC announced a change in the voting rights held by BlackRock, Inc., which now holds 5.45% of the total voting rights in the company. This adjustment in BlackRock’s holdings may impact Tate & Lyle’s shareholder dynamics and influence future corporate decisions, reflecting BlackRock’s strategic interest in the company.

Spark’s Take on GB:TATE Stock

According to Spark, TipRanks’ AI Analyst, GB:TATE is a Outperform.

Tate & Lyle scores well due to its strong financial health, solid valuation, and positive corporate events, reflecting confidence in future prospects. However, declining revenue and mixed technical indicators suggest caution in the near term. The successful integration of CP Kelco and strategic initiatives further enhance its outlook.

To see Spark’s full report on GB:TATE stock, click here.

Other
BlackRock Adjusts Stake in Tate & Lyle PLC
Neutral
Apr 29, 2025

BlackRock, Inc., a major shareholder in Tate & Lyle PLC, has adjusted its voting rights holdings, now holding 5.45% of the total voting rights. This change in BlackRock’s stake reflects a slight decrease in direct voting rights but maintains the overall percentage, potentially impacting shareholder dynamics and influencing future corporate decisions.

Spark’s Take on GB:TATE Stock

According to Spark, TipRanks’ AI Analyst, GB:TATE is a Outperform.

Tate & Lyle scores well due to its strong financial health, solid valuation, and positive corporate events, reflecting confidence in future prospects. However, declining revenue and mixed technical indicators suggest caution in the near term. The successful integration of CP Kelco and strategic initiatives further enhance its outlook.

To see Spark’s full report on GB:TATE stock, click here.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Increases Stake in Tate & Lyle
Neutral
Apr 28, 2025

Tate & Lyle has announced a change in the voting rights held by BlackRock, Inc., a major shareholder. As of April 25, 2025, BlackRock’s total voting rights in Tate & Lyle have increased from 5.26% to 5.45%, indicating a slight increase in their stake. This adjustment in holdings reflects BlackRock’s continued interest and investment in Tate & Lyle, potentially impacting the company’s governance and strategic decisions.

Spark’s Take on GB:TATE Stock

According to Spark, TipRanks’ AI Analyst, GB:TATE is a Outperform.

Tate & Lyle scores well due to its strong financial health, solid valuation, and positive corporate events, reflecting confidence in future prospects. However, declining revenue and mixed technical indicators suggest caution in the near term. The successful integration of CP Kelco and strategic initiatives further enhance its outlook.

To see Spark’s full report on GB:TATE stock, click here.

Regulatory Filings and Compliance
Tate & Lyle Announces Change in Voting Rights by Black Creek
Neutral
Apr 24, 2025

Tate & Lyle PLC has announced a change in the voting rights held by Black Creek Investment Management Inc., a Canadian investment management company. The notification indicates that Black Creek’s voting rights have decreased slightly from 3.024979% to 2.992493%, involving shares beneficially owned by 12 separate funds and clients. This adjustment in holdings does not affect any single fund or client reaching the 3% threshold, and Black Creek retains the discretion to exercise voting rights for the shares held.

Spark’s Take on GB:TATE Stock

According to Spark, TipRanks’ AI Analyst, GB:TATE is a Outperform.

Tate & Lyle scores well due to its strong financial health, solid valuation, and positive corporate events, reflecting confidence in future prospects. However, declining revenue and mixed technical indicators suggest caution in the near term. The successful integration of CP Kelco and strategic initiatives further enhance its outlook.

To see Spark’s full report on GB:TATE stock, click here.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Tate & Lyle Successfully Integrates CP Kelco, Strengthening Market Position
Positive
Apr 15, 2025

Tate & Lyle has successfully integrated CP Kelco, operating as a combined business from April 2025, and is on track to deliver targeted synergies. The company expects its financial results for the year ending March 2025 to align with guidance, showing strong cash flow and improved EBITDA margins. This integration is expected to enhance Tate & Lyle’s market position, with a focus on delivering value through a new organizational framework and increased customer engagement.

Spark’s Take on GB:TATE Stock

According to Spark, TipRanks’ AI Analyst, GB:TATE is a Neutral.

Tate & Lyle’s overall stock score reflects its solid financial health and stable balance sheet, balanced by concerns over declining revenue and technical indicators suggesting near-term caution. The company’s strategic initiatives and positive corporate events, such as managerial share purchases and successful M&A integration, contribute positively to its outlook, although technical analysis indicates potential short-term volatility.

To see Spark’s full report on GB:TATE stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Tate & Lyle Announces Board Changes with New Appointment and Retirement
Neutral
Mar 27, 2025

Tate & Lyle PLC announced the appointment of Steve Foots as a non-executive director and member of the Remuneration and Nominations Committees, effective after the Annual General Meeting in July 2025. Foots, currently the Chief Executive of Croda International Plc, brings strategic and operational expertise that is expected to support Tate & Lyle’s growth agenda. Concurrently, Lars Frederiksen will retire from the Board after nine years of service. These changes are aimed at strengthening the company’s leadership as it continues to focus on innovation and customer satisfaction.

Executive/Board ChangesBusiness Operations and Strategy
Tate & Lyle CFO Resigns from Inchcape Directorship
Neutral
Mar 14, 2025

Tate & Lyle PLC announced that Sarah Kuijlaars, the Chief Financial Officer, will resign from her position as a non-executive director at Inchcape PLC due to scheduling conflicts with her executive responsibilities at Tate & Lyle. This decision reflects the company’s focus on its internal operations and commitment to its strategic goals, potentially impacting its governance structure and stakeholder relations.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Adjusts Voting Rights in Tate & Lyle
Neutral
Mar 11, 2025

Tate & Lyle has announced a change in its major holdings, with BlackRock, Inc. adjusting its voting rights in the company. As of March 10, 2025, BlackRock’s total voting rights in Tate & Lyle have decreased slightly from 5.31% to 5.26%. This adjustment in holdings may influence the company’s market positioning and stakeholder dynamics, reflecting BlackRock’s strategic financial decisions.

Other
Tate & Lyle PLC Announces Managerial Share Acquisition
Positive
Mar 5, 2025

Tate & Lyle PLC announced a transaction involving the acquisition of 8,200 ordinary shares by David Hearn, a Person Discharging Managerial Responsibilities (PDMR), and Laurie Hearn, a person closely associated (PCA). The shares were purchased at a price of £5.376255 each, totaling £44,085.29. This transaction, conducted on the London Stock Exchange, increases Mr. Hearn and his PCA’s total shareholding to 27,261 shares, reflecting confidence in the company’s prospects and potentially impacting stakeholder perceptions positively.

Business Operations and Strategy
Black Creek Increases Stake in Tate & Lyle PLC
Neutral
Feb 28, 2025

Black Creek Investment Management Inc., based in Toronto, Canada, has increased its voting rights in Tate & Lyle PLC to 3.024979% as of February 26, 2025. This acquisition signifies a slight increase from its previous holding of 2.999830%, highlighting Black Creek’s growing influence in the company. The shares are held by 12 separate funds and clients advised by Black Creek, which exercises voting rights on their behalf. This development may impact Tate & Lyle’s shareholder dynamics and strategic decisions moving forward.

Other
Tate & Lyle CFO Increases Shareholding, Signaling Confidence
Positive
Feb 28, 2025

Tate & Lyle PLC announced a transaction involving Sarah Kuijlaars, the Chief Financial Officer, who acquired 20,000 ordinary shares at £5.645 each, totaling £112,900. This transaction, conducted on the London Stock Exchange, increases Kuijlaars’ total holdings to 40,000 shares, reflecting confidence in the company’s future prospects and potentially influencing stakeholder perceptions of its market stability.

Delistings and Listing Changes
Tate & Lyle Announces Block Listing of Shares
Neutral
Feb 27, 2025

Tate & Lyle PLC has applied for a block listing of 275,000 ordinary shares to be admitted to the Official List of the UK Listing Authority and traded on the London Stock Exchange. This move, related to the company’s Sharesave Plans, is expected to enhance the company’s liquidity and provide additional opportunities for employee investment.

Regulatory Filings and Compliance
Tate & Lyle Director Increases Stake with ADR Purchase
Positive
Feb 20, 2025

Tate & Lyle PLC announced that Glenn Fish, a non-executive director, has acquired 1,000 American Depositary Receipts (ADRs) in the company, each representing four ordinary shares. This transaction reflects Fish’s growing interest in Tate & Lyle, totaling 3,960.4 ADRs equivalent to 15,841.6 shares. The transaction, conducted on the OTCQX exchange, underscores the company’s compliance with the Market Abuse Regulation and highlights potential confidence in the company’s prospects by its managerial personnel.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Tate & Lyle Reports Strong Quarter with Successful CP Kelco Integration
Positive
Feb 13, 2025

Tate & Lyle has reported a solid operating performance for the quarter ending December 2024, marked by volume and EBITDA growth, despite a 4% revenue decline due to input cost deflation. The acquisition and integration of CP Kelco are progressing well, with expected synergies reinforcing the company’s growth-focused strategy. This strategic move enhances Tate & Lyle’s market position, particularly in the mouthfeel segment, and supports their long-term goals of profitable volume growth and strong cash flow amidst geopolitical uncertainties and pricing pressures.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.