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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 79 (OpenAI - 4o)
Rating:79Outperform
Price Target:
304.00p
▲(11.36% Upside)
Treatt plc's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust profitability and stable balance sheet enhance its financial health, while the technical indicators suggest positive momentum despite potential overbought conditions. The absence of earnings call data and corporate events does not impact the overall score.

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

Treatt plc Business Overview & Revenue Model

Company DescriptionTreatt 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 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
Positive
Last Price273.00
Price Trends
50DMA
236.88
Positive
100DMA
247.42
Positive
200DMA
307.71
Negative
Market Momentum
MACD
8.98
Positive
RSI
67.12
Neutral
STOCH
65.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TET, the sentiment is Positive. The current price of 273 is above the 20-day moving average (MA) of 267.98, above the 50-day MA of 236.88, and below the 200-day MA of 307.71, indicating a neutral trend. The MACD of 8.98 indicates Positive momentum. The RSI at 67.12 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
79
Outperform
£160.95M14.808.02%3.08%1.12%-0.70%
70
Outperform
£4.01B28.656.17%3.30%2.36%-13.99%
70
Outperform
£616.66M20.766.65%8.40%4.75%-3.29%
68
Neutral
£45.09M12.1110.25%8.48%29.33%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
54
Neutral
£955.69M3.37%1.34%-11.78%-92.61%
45
Neutral
£9.66M-78.76%-24.85%40.28%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:TET
Treatt plc
273.00
-137.02
-33.42%
GB:CRDA
Croda International
2,871.00
-1,170.49
-28.96%
GB:DCTA
Directa Plus
9.25
-2.25
-19.57%
GB:ELM
Elementis
166.20
20.95
14.42%
GB:IOF
Iofina plc
23.50
5.00
27.03%
GB:VCT
Victrex
709.00
-172.90
-19.61%

Treatt plc Corporate Events

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: Sep 10, 2025