Treatt plc (TET) AI Stock Analysis

• Market Cap: £128.52M
• Dividend Yield: 4.08%
• Average Volume (3M): 863.87K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.87
• Revenue Growth: 1.12%
• EPS Growth: -0.70%
• Country: UK
• Employees: 379
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.08
• 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: 37.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 252.00p ▲(19.43% Upside)

The overall stock score for Treatt plc is driven primarily by its strong financial performance, characterized by consistent revenue and profit growth, and a stable balance sheet. However, bearish technical indicators and slightly negative free cash flow growth weigh down the score. The valuation is favorable with a low P/E ratio and attractive dividend yield, providing some upside potential.

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 suggests low financial risk and high financial stability, providing Treatt with flexibility for future investments.

Profitability Margins

Strong profitability margins reflect efficient cost management and operational efficiency, enhancing Treatt's ability to generate sustainable profits.

Negative Factors

Free Cash Flow Growth

Negative free cash flow growth indicates challenges in capital efficiency, potentially limiting Treatt's ability to reinvest in growth opportunities.

EPS Growth

Negative EPS growth suggests declining profitability per share, which may impact investor confidence and limit future capital raising potential.

Free Cash Flow Conversion

While positive, the low ratio indicates limited conversion of profit into cash, potentially affecting liquidity and investment capacity.

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	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	24.22M	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: 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 above the 20-day moving average (MA) of 209.90, below the 50-day MA of 214.77, and below the 200-day MA of 243.22, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 54.34 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	67 Neutral	£128.52M	11.82	8.02%	4.08%	1.12%	-0.70%
CRDA	65 Neutral	£3.85B	27.52	6.17%	3.45%	2.36%	-13.99%
ELM	64 Neutral	£948.96M	-17.58	3.37%	1.34%	-11.78%	-92.61%
ESNT	63 Neutral	£274.44M	29.72	3.48%	2.44%	-4.71%	86.21%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ITX	54 Neutral	£15.51M	-16.08	-12.88%	―	25.56%	35.12%
SYNT	51 Neutral	£103.04M	-1.24	-7.26%	―	-4.41%	2.29%

Treatt plc Corporate Events

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.