Treatt plc (TET) AI Stock Analysis

• Market Cap: £155.34M
• Dividend Yield: 3.19%
• Average Volume (3M): 520.51K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.96
• Revenue Growth: 1.12%
• EPS Growth: -0.70%
• Country: UK
• Employees: 379
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 0.04
• Shares Outstanding: 59,338,900
• 10 Day Avg. Volume: 1,132,485
• 30 Day Avg. Volume: 520,510
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £276.80
• Price Target Upside: 4.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 79 Outperform
• Price Target: 304.00p ▲(15.15% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Treatt's products and effective market strategies, supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio enhances financial stability, providing Treatt with flexibility to invest in growth opportunities and withstand economic downturns.

Profitability Margins

Strong profitability margins reflect efficient cost management and pricing power, contributing to sustained financial health and competitive advantage.

Negative Factors

Free Cash Flow Growth

Negative free cash flow growth suggests potential challenges in capital efficiency, which could limit Treatt's ability to fund new projects or return capital to shareholders.

EPS Growth

Negative EPS growth indicates declining profitability per share, which may affect investor confidence and the company's ability to attract capital.

Employee Base

A relatively small employee base may limit Treatt's capacity to scale operations quickly in response to rising demand, potentially impacting growth opportunities.

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

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	153.07M	153.07M	147.40M	140.19M	124.33M	109.02M
Gross Profit	44.27M	44.49M	44.82M	39.08M	42.22M	31.88M
EBITDA	25.00M	24.49M	19.31M	19.05M	21.52M	15.70M
Net Income	14.40M	14.40M	10.94M	13.31M	15.15M	9.77M
Balance Sheet
Total Assets	169.85M	169.85M	175.02M	188.18M	149.42M	123.52M
Cash, Cash Equivalents and Short-Term Investments	1.79M	1.79M	809.00K	2.35M	7.26M	7.74M
Total Debt	2.52M	2.52M	11.19M	24.77M	16.37M	7.31M
Total Liabilities	27.84M	27.84M	37.77M	54.33M	43.12M	32.40M
Stockholders Equity	142.01M	142.01M	137.25M	133.85M	106.30M	91.12M
Cash Flow
Free Cash Flow	15.19M	15.40M	15.78M	-14.16M	-5.80M	-11.33M
Operating Cash Flow	20.62M	21.07M	21.49M	-1.39M	8.57M	13.49M
Investing Cash Flow	-5.63M	-5.63M	-4.16M	-7.17M	-14.36M	-24.88M
Financing Cash Flow	-13.38M	-14.37M	-12.51M	4.38M	963.00K	-3.85M

Treatt plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 264.00
• 50DMA: Positive
• 100DMA: Positive
• 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 264 is above the 20-day moving average (MA) of 232.90, above the 50-day MA of 229.18, and below the 200-day MA of 320.54, indicating a neutral trend. The MACD of 10.13 indicates Negative momentum. The RSI at 69.56 is Neutral, neither overbought nor oversold. The STOCH value of 78.68 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
TET	79 Outperform	£155.34M	14.28	8.02%	3.19%	1.12%	-0.70%
VCT	73 Outperform	£634.93M	21.38	6.65%	8.16%	4.75%	-3.29%
CRDA	64 Neutral	£3.51B	25.11	6.17%	3.80%	2.36%	-13.99%
ELM	64 Neutral	£952.49M	―	3.37%	1.36%	-11.78%	-92.61%
Sector *	61 Neutral	$10.48B	7.52	-0.05%	2.87%	2.87%	-36.73%
DCTA	45 Neutral	£11.49M	―	-82.21%	―	-38.36%	-4.92%
IOF	―	£47.01M	20.76	6.20%	―	―	―

Treatt plc Corporate Events

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.