Treatt plc (TET) AI Stock Analysis

• Market Cap: £140.90M
• Dividend Yield: 3.52%
• Average Volume (3M): 863.87K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.80
• Revenue Growth: 1.12%
• EPS Growth: -0.70%
• Country: UK
• Employees: 379
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.04
• Shares Outstanding: 59,338,900
• 10 Day Avg. Volume: 910,892
• 30 Day Avg. Volume: 863,865
• PEG Ratio: 0.57
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 17.77
• 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: £290.00
• Price Target Upside: 21.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• 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 Business Overview & Revenue Model

Company Description

Treatt 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 Money

Treatt 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.16M	153.07M	147.40M	140.19M	124.33M	109.02M
Gross Profit	40.26M	44.49M	44.82M	39.08M	42.22M	31.88M
EBITDA	20.84M	24.49M	19.31M	19.05M	21.52M	15.70M
Net Income	11.26M	14.40M	10.94M	13.31M	15.15M	9.77M
Balance Sheet
Total Assets	172.36M	169.85M	175.02M	188.18M	149.42M	123.52M
Cash, Cash Equivalents and Short-Term Investments	2.57M	1.79M	809.00K	2.35M	7.26M	7.74M
Total Debt	1.62M	2.52M	11.19M	24.77M	16.37M	7.31M
Total Liabilities	29.22M	27.84M	37.77M	54.33M	43.12M	32.40M
Stockholders Equity	143.14M	142.01M	137.25M	133.85M	106.30M	91.12M
Cash Flow
Free Cash Flow	17.57M	15.40M	15.78M	-14.16M	-5.80M	-11.33M
Operating Cash Flow	23.12M	21.07M	21.49M	-1.39M	8.57M	13.49M
Investing Cash Flow	-5.79M	-5.63M	-4.16M	-7.17M	-14.36M	-24.88M
Financing Cash Flow	-16.62M	-14.37M	-12.51M	4.38M	963.00K	-3.85M

Treatt plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 239.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TET	74 Outperform	£140.90M	12.95	8.02%	3.52%	1.12%	-0.70%
CRDA	70 Outperform	£4.20B	30.03	6.17%	3.15%	2.36%	-13.99%
VCT	70 Outperform	£586.22M	19.74	6.65%	8.84%	4.75%	-3.29%
IOF	68 Neutral	£45.09M	12.37	10.25%	―	8.48%	29.33%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ELM	60 Neutral	£985.67M	-17.37	3.37%	1.30%	-11.78%	-92.61%
DCTA	45 Neutral	£8.09M	-2.23	-78.76%	―	-24.85%	40.28%

Treatt plc Corporate Events

Treatt PLC Faces Revenue Decline Amid Market Challenges

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.

Treatt PLC Appoints Interim CFO Amid Leadership Transition

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.

Treatt plc Directors Reinforce Commitment with Share Purchases

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.

Treatt PLC Revises Financial Outlook Amid Trading Challenges

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.