Treatt plc (TET) AI Stock Analysis

• Market Cap: £110.99M
• Dividend Yield: 4.08%
• Average Volume (3M): 863.87K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 0.82
• Revenue Growth: 1.12%
• EPS Growth: -0.70%
• Country: UK
• Employees: 379
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.05
• Shares Outstanding: 59,489,550
• 10 Day Avg. Volume: 910,892
• 30 Day Avg. Volume: 863,865
• PEG Ratio: -0.49
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 27.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £250.00
• Price Target Upside: 18.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): £136.86M

• Rating: 60 Neutral
• Price Target: 194.00 p ▼(-8.06% Downside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is held back primarily by the FY2025 profitability drop and weaker cash-flow trend despite a strong, low-leverage balance sheet. Technicals are neutral-to-soft with the stock below longer-term moving averages, and valuation looks somewhat stretched at ~25x earnings, partially offset by a ~3.9% dividend yield.

Positive Factors

Balance sheet strength

Very low leverage (debt-to-equity ~0.06) gives Treatt the financial flexibility to absorb demand shocks, fund working-capital swings, and support capex or dividends without needing immediate external financing. This reduces insolvency risk and supports strategic choices over months.

Product breadth and B2B stickiness

A diversified portfolio across citrus, fruit, tea, herb and spice extracts plus custom formulation work creates durable B2B relationships and repeat order flows. Product and customer diversity lower single-commodity exposure and increase switching costs, supporting steadier revenue.

Positive cash generation in 2025

Positive operating cash flow and positive free cash flow in 2025 show the core business can generate surplus cash after investments. That capacity underpins dividend payouts, working-capital needs and selective reinvestment, bolstering financial resilience over the medium term.

Negative Factors

Profitability reset in FY2025

The sharp FY2025 decline in revenue and margin materially reduces internal funding and returns on capital. It likely reflects demand, pricing or mix pressures that could persist absent corrective actions, weakening earnings durability and constraining reinvestment over several quarters.

Cash-flow volatility and sharp FCF fall

A ~66% drop in free cash flow versus 2024 and prior years' volatile cash generation undermine predictability for dividends, capex and working-capital planning. Persistent variability increases the chance of funding pressure or reduced strategic flexibility during adverse periods.

Input and demand exposure to agricultural commodities

Reliance on agricultural raw materials and beverage customer demand ties margins to commodity prices, crop yields and formulation trends. Structural input-cost inflation, poor harvests or weaker beverage demand can compress margins and increase operational volatility for months to years.

Treatt plc Business Overview & Revenue Model

Company Description

Treatt plc, together with its subsidiaries, manufactures and supplies various natural extracts and ingredients to the flavor, fragrance, beverage, and consumer product industries in the United Kingdom, Germany, Ireland, the United States, China, and internationally. The company offers flavor ingredients, such as citrus, coffee, tea, health and wellness, and fruits and vegetables extracts; aroma, natural, and high impact chemicals; and herb, spice, and floral ingredients. It also provides ingredient applications for beverage and household products; and fragrance ingredients, such as blends and ingredients. The company was founded in 1886 and is headquartered in Bury Saint Edmunds, the United Kingdom.

How the Company Makes Money

Treatt makes money primarily by selling natural extract and flavor ingredients to business customers (B2B), with revenues recognized from the manufacture and supply of these ingredients for use in customers’ finished products. Key revenue streams include: (1) Sales of citrus-based ingredients (e.g., oils, essences, and distillates) and other fruit-derived extracts used to formulate beverage flavors and fragrances; (2) Sales of tea, herb, spice, and other botanical extracts/ingredients used for taste, aroma, and functional profiles in beverages and related applications; and (3) Product development and customization work that results in repeat supply of tailored ingredient solutions once customer formulations are finalized. Earnings are influenced by factors such as customer demand in beverages and other end-markets, the company’s ability to source and process natural raw materials (often agricultural commodities) efficiently, and long-term customer relationships that drive recurring orders for established formulations. Specific details on named partnerships are null.

Treatt plc Financial Statement Overview

Summary

Balance sheet strength (very low leverage) supports overall stability, but FY2025 showed a meaningful profitability reset (revenue down ~8.7% YoY and net margin down to ~3.8% from ~9.4%) and weaker, less consistent cash-flow momentum (free cash flow down sharply vs 2024 and historically volatile).

Income Statement

Profitability has weakened meaningfully in the latest annual period (2025): revenue fell (-8.7% year over year) and margins compressed, with net margin dropping to ~3.8% from ~9.4% in 2024 and EBITDA margin falling to ~9.9% from ~15.8%. The prior years show solid profitability and growth (2021–2024), but the sharp step-down in 2025 raises near-term execution and demand/mix risk despite the business still remaining profitable.

Balance Sheet

The balance sheet is a clear strength: leverage is low with debt-to-equity at ~0.06 in 2025 (and even lower in 2024), and equity is substantial relative to the asset base. Returns on equity have moderated (down to ~3.8% in 2025 from ~10.1% in 2024), but this appears driven more by the earnings decline than by balance-sheet strain.

Cash Flow

Cash generation is positive in 2025, with operating cash flow of ~10.7m and free cash flow of ~5.9m, and free cash flow covers ~56% of net income. However, free cash flow fell sharply versus 2024 (down ~66%), indicating higher reinvestment and/or working-capital pressure. Cash flow was also volatile historically (negative operating cash flow and deeply negative free cash flow in 2022), which lowers confidence in consistency.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	132.47M	153.07M	147.40M	140.19M	124.33M
Gross Profit	33.80M	44.49M	44.82M	39.08M	42.22M
EBITDA	13.15M	24.22M	19.31M	19.05M	21.52M
Net Income	5.06M	14.40M	10.94M	13.31M	15.15M
Balance Sheet
Total Assets	168.59M	169.85M	175.02M	188.18M	149.42M
Cash, Cash Equivalents and Short-Term Investments	1.75M	1.79M	809.00K	2.35M	7.26M
Total Debt	8.37M	2.52M	11.19M	24.77M	16.37M
Total Liabilities	33.85M	27.84M	37.77M	54.33M	43.12M
Stockholders Equity	134.74M	142.01M	137.25M	133.85M	106.30M
Cash Flow
Free Cash Flow	5.94M	15.40M	15.78M	-14.16M	-5.80M
Operating Cash Flow	10.67M	21.07M	21.49M	-1.39M	8.57M
Investing Cash Flow	-4.97M	-5.63M	-4.16M	-7.17M	-14.36M
Financing Cash Flow	-5.67M	-14.37M	-12.51M	4.38M	963.00K

Treatt plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 211.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TET, the sentiment is Negative. The current price of 211 is above the 20-day moving average (MA) of 207.22, above the 50-day MA of 209.68, and below the 200-day MA of 229.85, indicating a bearish trend. The MACD of -4.20 indicates Positive momentum. The RSI at 23.23 is Positive, neither overbought nor oversold. The STOCH value of 4.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TET.

Treatt plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRDA	66 Neutral	£3.57B	60.70	6.17%	3.45%	2.36%	-13.99%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TET	60 Neutral	£110.99M	32.05	3.64%	4.08%	1.12%	-0.70%
ELM	58 Neutral	£816.15M	-28.06	-6.85%	1.34%	-11.78%	-92.61%
ITX	54 Neutral	£14.23M	-12.59	-19.63%	―	25.56%	35.12%
SYNT	51 Neutral	£44.16M	-1.25	-7.26%	―	-4.41%	2.29%
ESNT	46 Neutral	£261.64M	131.42	3.47%	2.44%	-4.71%	86.21%

Treatt plc Corporate Events

Treatt Updates Total Voting Rights for Regulatory Disclosure Purposes

Treatt plc has clarified that it has 61,283,093 ordinary shares in issue, but after excluding 1,793,543 treasury shares and 454,418 shares held in employee benefit and SIP trusts—on which voting rights are waived—the total number of voting rights stands at 59,035,132. The company highlighted that this voting-rights figure should be used by shareholders as the reference denominator for determining whether they must report holdings or changes in holdings under the U.K. Financial Conduct Authority’s disclosure and transparency rules, providing clearer guidance for regulatory compliance and stake monitoring.

The most recent analyst rating on (GB:TET) stock is a Hold with a £221.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.

Treatt Confirms Randhawa as Permanent CFO and Adjusts Board Committees

Treatt plc, a specialist in natural extracts and ingredients for the beverage, flavour and fragrance markets, has strengthened its leadership team with the permanent appointment of Manprit Randhawa as Group Chief Financial Officer, effective 11 February 2026, while he continues as Interim Group Managing Director pending the recruitment of a permanent chief executive. The company has also adjusted its board committee leadership on an interim basis following recent non-executive departures, granting Randhawa a performance-linked LTIP award aligned to earnings and returns targets, in a move aimed at reinforcing governance continuity and execution of its strategic ambitions during this management transition period.

The most recent analyst rating on (GB:TET) stock is a Hold with a £221.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.

Treatt Publishes 2025 Annual Report and Issues Notice of 2026 AGM

Treatt plc has published its Annual Report and Accounts for the financial year ended 30 September 2025 and has also issued the notice of its 2026 Annual General Meeting, which will be held on 26 March 2026 at Investec plc’s offices in London. The documents, including the annual report, AGM notice and proxy form, have been made available to shareholders via the company’s website and submitted to the UK National Storage Mechanism in compliance with listing and disclosure rules, ensuring regulatory transparency and access for investors ahead of the meeting.

The most recent analyst rating on (GB:TET) stock is a Buy with a £270.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.

Treatt Seals Governance Pact With Major Shareholder Döhler and Adds Industry Veteran to Board

Treatt has formalised its relationship with major shareholder Döhler Finance Management B.V., which holds about 28% of its share capital, through a customary relationship agreement designed to ensure arm’s-length dealings, adherence to UK Listing Rules and protection of confidential information, while granting Döhler the right to nominate one director as long as its stake remains above 25%. As part of this arrangement, Treatt has appointed Döhler nominee Helga Moelschl, an industry veteran with more than two decades of experience at IFF and Givaudan, to the board as a non-independent non-executive director, a move the company’s chair says is intended to balance the interests of all shareholders while strengthening the board’s commercial and sector expertise.

The most recent analyst rating on (GB:TET) stock is a Hold with a £277.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.

Treatt Profits Slump as Market Headwinds Bite but Group Banks on Global Expansion and Döhler Tie-Up

Treatt reported a sharp downturn in full-year performance for the year to 30 September 2025, with revenue falling 11.8% to £132.5m and profit before tax and exceptional items dropping 44.4% to £10.3m amid weak US consumer demand, tariff uncertainty and sustained high citrus prices. Margins contracted, adjusted EBITDA slid by a third, earnings per share and dividends were cut, and net debt rose to £5.9m, partly reflecting a £5m share buyback, but the group emphasised continued strong cash discipline and adherence to its dividend policy. Operationally, Treatt highlighted strategic progress, including a major win for its sugar reduction platform, expansion of sales teams in Germany and France, and the opening of a commercial and innovation centre in Shanghai, followed by a distribution deal in South‑East Asia with IMCD. Post year-end, the company entered a relationship agreement with major shareholder Döhler, after a rival private equity-backed takeover bid lapsed, and the board now sees scope to leverage its underused, well-invested manufacturing capacity to restore profit growth, while carefully managing potential conflicts arising from Döhler’s dual role as key customer and significant shareholder.

The most recent analyst rating on (GB:TET) stock is a Hold with a £277.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.