Treatt plc (TET) AI Stock Analysis

• Market Cap: £124.56M
• Dividend Yield: 4.08%
• Average Volume (3M): 863.87K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 0.85
• 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: 226.00p ▲(7.11% Upside)
• 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

Treatt’s very low leverage (debt-to-equity ~0.06) provides financial flexibility to absorb commodity input swings, support working-capital needs and fund strategic investments or distributions without forced asset sales. This balance-sheet strength underpins stability over the medium term.

Recurring B2B Model

The company’s B2B model supplies natural extracts and offers product development that creates repeat supply once customer formulations are finalized. Customization and long-term customer relationships yield durable revenue visibility and higher switching costs across months.

Product Diversification

A broad portfolio across citrus, fruit, tea, herb and spice-derived ingredients reduces reliance on any single agricultural input or beverage segment. This structural diversification helps absorb crop-specific shocks and supports cross-selling and resilience over the medium term.

Negative Factors

Profitability Reset

FY2025 showed an ~8.7% revenue decline and sharp net margin compression to ~3.8%, a material profitability reset. Persisting lower margins weaken operating leverage, reduce retained earnings and make consistent recovery of margins and cash generation more challenging over the coming months.

Weak and Volatile Cash Flow

Free cash flow fell roughly 66% versus 2024 and operating cash flow has been volatile historically, including negative years. Inconsistent cash conversion constrains internal funding for capex, working capital and dividends and increases reliance on external finance in stress periods.

Falling Return on Equity

Return on equity declined sharply to ~3.8% from ~10.1% year-over-year, signaling a marked drop in capital efficiency. If ROE remains depressed, the company may struggle to generate attractive shareholder returns and to fund growth organically without improving margins or strategy.

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 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

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: Positive
• Last Price: 211.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 211 is below the 20-day moving average (MA) of 211.60, below the 50-day MA of 211.08, and below the 200-day MA of 234.01, indicating a neutral trend. The MACD of 0.66 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 36.92 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRDA	66 Neutral	£3.96B	60.70	6.17%	3.45%	2.36%	-13.99%
ELM	64 Neutral	£910.49M	-9.47	3.37%	1.34%	-11.78%	-92.61%
ESNT	63 Neutral	£280.19M	267.50	3.48%	2.44%	-4.71%	86.21%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TET	60 Neutral	£124.56M	32.05	8.02%	4.08%	1.12%	-0.70%
ITX	54 Neutral	£14.83M	-12.59	-12.88%	―	25.56%	35.12%
SYNT	51 Neutral	£29.18M	-1.25	-7.26%	―	-4.41%	2.29%

Treatt plc Corporate Events

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.

Treatt PLC Announces Interim Management Changes and Upcoming AGM

Treatt PLC has announced interim management appointments following the upcoming departure of CEO David Shannon. Manprit Randhawa, currently Interim CFO, will assume the role of Interim Group Managing Director, while Kelly Gordon will take on expanded responsibilities within the finance function. These changes are aimed at ensuring business continuity and effective leadership until a new CEO is appointed. The company will release its full-year results for FY25 on January 20, 2026, and hold its AGM on March 26, 2026.

The most recent analyst rating on (GB:TET) stock is a Hold with a £252.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.

Treatt PLC Announces Board Changes with Philip O’Connor’s Departure

Treatt PLC has announced the upcoming departure of Philip O’Connor from his role as a Non-executive Director, effective 28 February 2026, after four years on the Board, including three as Senior Independent Director. The company is actively searching for new Non-executive Directors, and O’Connor will continue to assist in finalizing the Annual Report and Accounts for the year ending 30 September 2025. This change in the board’s composition may influence Treatt’s strategic direction and governance as it continues to serve the beverage, flavour, and fragrance industries.

The most recent analyst rating on (GB:TET) stock is a Hold with a £252.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.

Treatt PLC Announces CEO Transition

Treatt PLC has announced that David Shannon will step down as Chief Executive and Director on December 31, 2025. The Board has started a formal search for a new Chief Executive to lead the company into its next phase, emphasizing the importance of long-term leadership. This transition is expected to be smooth, with the current leadership team facilitating the handover process.

The most recent analyst rating on (GB:TET) stock is a Hold with a £252.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.

Treatt PLC Announces Directorate Change

Treatt PLC announced that Bronagh Kennedy will step down as a Non-executive Director at the end of her three-year term on January 31, 2026, to focus on other board roles. The company is in the process of appointing a new Non-executive Director, highlighting its commitment to maintaining strong leadership and governance. This change may impact the company’s board dynamics and strategic direction, with potential implications for stakeholders as Treatt continues to strengthen its position in the natural extracts and ingredients market.

The most recent analyst rating on (GB:TET) stock is a Hold with a £252.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.

Treatt PLC Acquisition Proposal Lapses Amid Shareholder Vote

Treatt PLC announced the lapse of a proposed acquisition by Natara Global Limited due to insufficient shareholder approval at recent meetings. Despite the setback, Treatt remains committed to its strategic goals and continues to engage with major stakeholders like Döhler Group SE, which has shown support for Treatt’s market position and strategy.

The most recent analyst rating on (GB:TET) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Treatt plc stock, see the GB:TET Stock Forecast page.