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Treatt PLC (GB:TET)
LSE:TET
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Treatt plc (TET) AI Stock Analysis

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GB:TET

Treatt plc

(LSE:TET)

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Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
285.00p
▲(19.25% Upside)
Treatt plc's strong financial performance is the primary driver of its stock score, supported by solid profitability and a stable balance sheet. The valuation is attractive with a reasonable P/E ratio and a good dividend yield. Technical analysis indicates potential short-term weakness, but medium-term trends are more positive. The absence of earnings call data and corporate events means these factors do not influence the score.

Treatt plc (TET) vs. iShares MSCI United Kingdom ETF (EWC)

Treatt plc Business Overview & Revenue Model

Company DescriptionTreatt plc (TET) is a leading global manufacturer and supplier of innovative and high-quality flavor and fragrance solutions. Operating primarily within the food and beverage, fragrance, and cosmetics sectors, Treatt specializes in the production of natural extracts, essential oils, and other compounds that enhance the sensory appeal of various consumer products. The company is known for its commitment to sustainability and quality, leveraging advanced technology and extensive industry expertise to deliver tailored solutions that meet the diverse needs of its clients.
How the Company Makes MoneyTreatt generates revenue through the sale of its flavor and fragrance products, which are supplied to a diverse range of industries, including food and beverage, personal care, and household products. The company operates a revenue model primarily based on product sales, with key revenue streams originating from both natural extracts and synthetic flavorings. Treatt's strong partnerships with major brands and businesses in the FMCG (fast-moving consumer goods) sector bolster its market presence and contribute significantly to its earnings. Additionally, the company benefits from its reputation for quality and innovation, which allows it to command premium pricing for its products. Seasonal demand variations and market trends in flavor preferences also impact revenue, while Treatt's focus on sustainability and natural ingredients aligns with growing consumer trends, further enhancing its revenue potential.

Treatt plc Financial Statement Overview

Summary
Treatt plc demonstrates strong financial health with consistent revenue and profit growth, robust profitability margins, and a stable balance sheet with low leverage. Cash flow metrics indicate solid cash management, though slightly negative free cash flow growth suggests room for improvement in capital efficiency.
Income Statement
85
Very Positive
Treatt plc has shown consistent revenue growth, with a 3.8% increase from 2023 to 2024. The company's gross profit margin stands at 29.1%, indicating strong profitability. The net profit margin of 9.4% reflects efficient cost management. EBIT and EBITDA margins are solid at 13.0% and 15.8%, respectively, indicating good operational efficiency.
Balance Sheet
78
Positive
Treatt plc maintains a stable financial position with a low debt-to-equity ratio of 0.02, indicating low leverage and financial risk. The company's return on equity (ROE) is 10.1%, showing effective use of equity. The equity ratio of 83.6% demonstrates a strong capital structure with high equity financing.
Cash Flow
82
Very Positive
The company exhibits strong cash flow management with a free cash flow growth rate of -2.4% from 2023 to 2024. The operating cash flow to net income ratio is 1.46, indicating healthy cash generation from operations. The free cash flow to net income ratio is 1.07, reflecting good conversion of profit into cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue145.16M153.07M147.40M140.19M124.33M109.02M
Gross Profit40.26M44.49M44.82M39.08M42.22M31.88M
EBITDA20.84M24.49M19.31M19.05M21.52M15.70M
Net Income11.26M14.40M10.94M13.31M15.15M9.77M
Balance Sheet
Total Assets172.36M169.85M175.02M188.18M149.42M123.52M
Cash, Cash Equivalents and Short-Term Investments2.57M1.79M809.00K2.35M7.26M7.74M
Total Debt1.62M2.52M11.19M24.77M16.37M7.31M
Total Liabilities29.22M27.84M37.77M54.33M43.12M32.40M
Stockholders Equity143.14M142.01M137.25M133.85M106.30M91.12M
Cash Flow
Free Cash Flow17.57M15.40M15.78M-14.16M-5.80M-11.33M
Operating Cash Flow23.12M21.07M21.49M-1.39M8.57M13.49M
Investing Cash Flow-5.79M-5.63M-4.16M-7.17M-14.36M-24.88M
Financing Cash Flow-16.62M-14.37M-12.51M4.38M963.00K-3.85M

Treatt plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price239.00
Price Trends
50DMA
253.75
Negative
100DMA
247.32
Negative
200DMA
292.88
Negative
Market Momentum
MACD
-3.76
Positive
RSI
35.55
Neutral
STOCH
24.42
Neutral
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 239 is below the 20-day moving average (MA) of 267.03, below the 50-day MA of 253.75, and below the 200-day MA of 292.88, indicating a bearish trend. The MACD of -3.76 indicates Positive momentum. The RSI at 35.55 is Neutral, neither overbought nor oversold. The STOCH value of 24.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TET.

Treatt plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
£140.90M12.958.02%3.52%1.12%-0.70%
70
Outperform
£4.20B30.036.17%3.15%2.36%-13.99%
70
Outperform
£586.22M19.746.65%8.84%4.75%-3.29%
68
Neutral
£45.09M12.3710.25%8.48%29.33%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
£985.67M-17.373.37%1.30%-11.78%-92.61%
45
Neutral
£8.09M-2.23-78.76%-24.85%40.28%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TET
Treatt plc
239.00
-230.57
-49.10%
GB:CRDA
Croda International
2,943.00
-600.49
-16.95%
GB:DCTA
Directa Plus
7.75
-3.50
-31.11%
GB:ELM
Elementis
172.00
37.10
27.50%
GB:IOF
Iofina plc
24.00
6.00
33.33%
GB:VCT
Victrex
674.00
-137.39
-16.93%

Treatt plc Corporate Events

Business Operations and StrategyFinancial DisclosuresM&A Transactions
Treatt PLC Faces Revenue Decline Amid Market Challenges
Negative
Oct 9, 2025

Treatt PLC has reported a challenging financial year ending September 30, 2025, with declines in revenue across its Heritage, Premium, and New categories due to high citrus oil prices and reduced consumer confidence in North America. Despite these headwinds, the company remains focused on operational efficiencies and cost control, expecting to meet revised financial expectations with a projected revenue of approximately £130.6 million and profit before tax of around £10 million. Additionally, Treatt has announced a recommended cash offer from Natara UK Bidco Limited, controlled by Exponent Private Equity LLP, signaling potential changes in ownership.

The most recent analyst rating on (GB:TET) stock is a Hold with a £290.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.

Executive/Board Changes
Treatt PLC Appoints Interim CFO Amid Leadership Transition
Neutral
Sep 5, 2025

Treatt PLC has announced the appointment of Manprit Randhawa as the Interim Group Chief Financial Officer, effective from September 8, 2025, following the departure of Ryan Govender on September 30, 2025. Manprit, who brings 20 years of experience in finance and strategy across various industries, will support the company during the ongoing search for a permanent CFO, joining the Executive Committee but not the Board.

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.

Business Operations and StrategyDividends
Treatt plc Directors Reinforce Commitment with Share Purchases
Positive
Aug 19, 2025

Treatt plc announced transactions involving its CEO, David Shannon, and CFO, Ryan Govender, who both purchased ordinary shares through a dividend reinvestment plan. These transactions, conducted outside a trading venue, reflect the directors’ continued investment in the company, potentially signaling confidence in Treatt’s future performance and stability.

The most recent analyst rating on (GB:TET) stock is a Buy with a £650.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Treatt PLC Revises Financial Outlook Amid Trading Challenges
Negative
Jul 24, 2025

Treatt PLC has revised its financial outlook for the year ending September 2025, anticipating lower revenue and profit before tax due to several trading challenges. These challenges include reduced sales in the second half, competitive pressures, and a weaker US dollar affecting profits. Despite these setbacks, Treatt remains committed to growth through customer-centric strategies and innovation, with plans to open a new innovation centre in Shanghai and a strengthened sales pipeline for future opportunities.

The most recent analyst rating on (GB:TET) stock is a Buy with a £650.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET 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: Oct 17, 2025