Tate & Lyle (TATYY)
OTHER OTC:TATYY
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Tate & Lyle
(OTC:TATYY)
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Rating:63Neutral
Price Target:
$32.00
▲(62.60% Upside)
Action:Reiterated
Date:06/09/26
Overall score reflects improved revenue and cash flow momentum but tempered by higher leverage and uneven profitability. Technicals are supportive with strong trend/momentum, while valuation (P/E ~25.9) is only partly justified by the ~3.4% dividend. Earnings call points to modest growth and strong execution on synergies/productivity, offset by near-term headwinds (bio-gums delay, working-capital drag, and financing costs).
Positive Factors
Successful CP Kelco integration
A smooth integration that doubled the cross‑selling pipeline and has already delivered ~10% of targeted revenue synergies materially lowers execution risk. Durable cross-sell opportunities and embedded customer relationships support sustainable incremental revenue and margin expansion over the medium term.
Negative Factors
Material increase in leverage
Debt roughly doubled post-acquisition, raising net-debt/EBITDA to the top of target range and reducing balance-sheet flexibility. Higher leverage increases interest expense sensitivity and limits capacity to absorb margin shocks or pursue opportunistic investment without further refinancing or deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Successful CP Kelco integration
A smooth integration that doubled the cross‑selling pipeline and has already delivered ~10% of targeted revenue synergies materially lowers execution risk. Durable cross-sell opportunities and embedded customer relationships support sustainable incremental revenue and margin expansion over the medium term.
Read all positive factors
Tate & Lyle (TATYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.25B
Dividend Yield5.06%
Average Volume (3M)2.30K
Price to Earnings (P/E)25.0
Beta (1Y)0.51
Revenue Growth21.44%
EPS Growth48.65%
CountryUS
Employees3,318
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.89
Shares Outstanding111,362,500
10 Day Avg. Volume956
30 Day Avg. Volume2,299
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.02
Price to Sales (P/S)0.81
P/FCF Ratio13.12
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue1.72
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda9.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2
Revenue Forecast (FY)$2.70B
Tate & Lyle Business Overview & Revenue Model
Company Description
Tate & Lyle PLC, along with its subsidiaries, offers a diverse portfolio of ingredients and specialized solutions catering to the food, beverage, and other industrial sectors. Its global footprint spans the United States, the United Kingdom, conti...
How the Company Makes Money
Tate & Lyle makes money primarily by selling specialty ingredient products and solutions to food and beverage manufacturers and, to a lesser extent, foodservice-related customers. Revenue is generated through (1) product sales of functional ingred...
Tate & Lyle Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
Neutral — The call balances clear strategic and operational progress (successful CP Kelco integration, early cross-selling wins, productivity and cost synergies delivered ahead of plan, stronger pipeline and a resilient margin/healthy balance sheet) against near-term trading and cash-flow headwinds (like-for-like revenue/EBITDA declines, regional softness in Europe and Latin America, a delayed bio-gums benefit, below-target cash conversion and one-off exceptional charges). Management presents a cautious but constructive outlook for modest revenue growth and H2-weighted volume recovery while acknowledging risks from tariffs, geopolitical uncertainty and timing of certain savings.Positive Updates
Successful CP Kelco Integration
Integration of CP Kelco completed smoothly without customer disruption; cross-selling pipeline more than doubled in H2 to over $100m and ~10% of the targeted $70m revenue synergies (10% of CP Kelco revenue) have been delivered to date.
Negative Updates
Like-for-like Revenue and EBITDA Declines
On an adjusted, pro forma, like-for-like constant currency basis, revenue was 3% lower and adjusted EBITDA was 3% lower (in line with October guidance); adjusted profit before tax was 5% lower at £238m and adjusted EPS reported at 40.4p.
Read all updates
Q4-2026 Updates
Positive
Negative
Successful CP Kelco Integration
Integration of CP Kelco completed smoothly without customer disruption; cross-selling pipeline more than doubled in H2 to over $100m and ~10% of the targeted $70m revenue synergies (10% of CP Kelco revenue) have been delivered to date.
Read all positive updates
Company Guidance
Guidance for FY2027: management expects modest constant‑currency revenue growth with volume growth weighted to the second half and broadly flat EBITDA before an approximately $20m headwind from the rescheduled bio‑gums consolidation, assuming a limited impact from the Middle East conflict and using productivity, procurement and selective pricing to mitigate cost inflation. They expect an adjusted effective tax rate of 23–25%, capital expenditure of £110–130m (FY26 capex £125m), and reaffirm a cash‑conversion target >75% (FY26 was 70% with £164m free cash flow). Balance‑sheet metrics: target net‑debt/EBITDA 1–2.5x (current 2.3x with net debt £939m), near‑term liquidity of ~£1bn plus an $800m RCF extended to 2031, weighted average cost of debt ~4% and weighted average maturity 4.7 years. Medium‑term delivery targets reiterated include revenue synergies of ~10% of CP Kelco revenue (~$70m by FY2029, ~10% achieved to date), at least $50m annualized cost synergies (target met one year early), and an increased productivity goal of $200m by FY2028 (already $53m delivered this year; $144m over three years).Tate & Lyle Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.01B | 1.74B | 1.65B | 1.75B | 1.38B |
| Gross Profit | 622.00M | 706.00M | 851.00M | 733.00M | 514.00M |
| EBITDA | 360.00M | 254.00M | 345.00M | 279.00M | 168.00M |
| Net Income | 98.58M | 143.00M | 188.00M | 190.00M | 236.00M |
Balance Sheet | |||||
| Total Assets | 3.67B | 3.73B | 2.28B | 2.51B | 3.25B |
| Cash, Cash Equivalents and Short-Term Investments | 344.02M | 334.00M | 437.00M | 475.00M | 112.00M |
| Total Debt | 1.29B | 1.31B | 590.00M | 713.00M | 679.00M |
| Total Liabilities | 2.07B | 2.14B | 1.04B | 1.32B | 1.63B |
| Stockholders Equity | 1.60B | 1.59B | 1.24B | 1.19B | 1.62B |
Cash Flow | |||||
| Free Cash Flow | 123.98M | 43.00M | 98.00M | -12.00M | -45.00M |
| Operating Cash Flow | 241.87M | 164.00M | 208.00M | 66.00M | 103.00M |
| Investing Cash Flow | -122.97M | -630.00M | -20.00M | 835.00M | -113.00M |
| Financing Cash Flow | -107.72M | 367.00M | -215.00M | -598.00M | -247.00M |
Tate & Lyle Technical Analysis
Positive
19.68
Price Trends
23.59
Positive
21.49
Positive
21.05
Positive
Market Momentum
1.66
Positive
65.66
Neutral
12.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TATYY, the sentiment is Positive. The current price of 19.68 is below the 20-day moving average (MA) of 27.88, below the 50-day MA of 23.59, and below the 200-day MA of 21.05, indicating a bullish trend. The MACD of 1.66 indicates Positive momentum. The RSI at 65.66 is Neutral, neither overbought nor oversold. The STOCH value of 12.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TATYY.
Tate & Lyle Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $6.14B | 9.24 | 15.57% | 2.86% | -2.21% | 9.29% | |
63 Neutral | $3.25B | 24.95 | 6.17% | 5.06% | 21.44% | 48.65% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $6.08B | 9.95 | 15.30% | 5.64% | -2.90% | 33.92% | |
62 Neutral | $6.34B | 7.12 | 24.19% | ― | 3.30% | -26.64% | |
56 Neutral | $6.15B | -142.78 | -0.51% | 7.87% | -4.73% | -112.96% | |
52 Neutral | $6.03B | 20.32 | 16.90% | 3.37% | 2.04% | -16.15% |
* Consumer Defensive Sector Average
TATYY
Tate & Lyle
29.39
1.50
5.39%
CPB
Campbell Soup
20.40
-9.98
-32.86%
CAG
Conagra Brands
12.85
-6.90
-34.94%
PPC
Pilgrim's Pride
26.63
-17.94
-40.25%
INGR
Ingredion
97.41
-36.37
-27.19%
LW
Lamb Weston Holdings
43.68
-8.54
-16.35%
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.