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Tate & Lyle Plc Sponsored Adr (TATYY)
:TATYY
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Tate & Lyle
(OTC:TATYY)
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Rating:64Neutral
Price Target:
$22.00
▲(9.40% Upside)
Tate & Lyle's overall stock score reflects a stable financial foundation with strong strategic progress as highlighted in the earnings call. However, technical indicators suggest bearish momentum, and the valuation appears high relative to peers, which tempers the overall score.
Tate & Lyle (TATYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.24B
Dividend Yield5.06%
Average Volume (3M)213.00
Price to Earnings (P/E)28.1
Beta (1Y)0.50
Revenue Growth6.97%
EPS Growth-66.75%
CountryUS
Employees3,318
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)1.08
Shares Outstanding111,361,694
10 Day Avg. Volume0
30 Day Avg. Volume213
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.87
Enterprise Value/Revenue2.69
Enterprise Value/Gross Profit2.69
Enterprise Value/Ebitda12.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Tate & Lyle Business Overview & Revenue Model
Company DescriptionTate & Lyle is a global provider of food ingredients and solutions, specializing in the manufacture of sweeteners, starches, and other food products. The company operates primarily in the food and beverage sector, offering a diverse range of products that enhance the taste, texture, and nutritional profile of foods and beverages. With a focus on innovation, Tate & Lyle develops sustainable and functional ingredients that cater to the evolving demands of consumers and food manufacturers worldwide.
How the Company Makes MoneyTate & Lyle generates revenue primarily through the sale of its food ingredients and solutions. Key revenue streams include the production and marketing of sweeteners, such as high-fructose corn syrup and sucralose, as well as starches used in various applications including food, beverage, and industrial processes. The company also earns income from specialty food ingredients that cater to health-conscious consumers, such as fiber and protein products. Significant partnerships with major food and beverage companies enhance its market presence and contribute to earnings, while a focus on sustainability and innovation supports ongoing demand for its products.
Tate & Lyle Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q2-2026)
| Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging market environment with revenue and EBITDA declines, impacted by tariffs and category softness. However, there are notable successes such as the doubling of the cross-selling pipeline value and strong demand for sucralose, indicating potential for future growth.Q2-2026 Updates
Positive Updates
CP Kelco Combination Success
The value of the cross-selling pipeline has more than doubled in the last 2 months, demonstrating strong customer engagement with the combined portfolio and expertise in mouthfeel.
Strong Sucralose Demand
Sucralose demand remains robust with the company selling as much as it can produce, indicating strong market acceptance despite broader market trends.
Margin Improvement in CP Kelco Portfolio
The margin of the CP Kelco portfolio is expected to improve further in the first half, indicating successful integration and cost management.
Negative Updates
Revenue and EBITDA Decline
Group revenue is expected to be 3% to 4% lower, with EBITDA in the first half expected to decline by high single-digit percent.
Challenging Market Conditions
A slowdown in market demand, particularly in North America, has been noted, affecting recent performance.
Impact of Tariffs
Tariffs affecting 3% to 5% of revenue, with significant impacts on supply routes from Brazil to North America.
Broad-Based Category Softness
Significant consumer inflation in North America affecting demand, with consistent softness across key categories.
Company Guidance
In the recent conference call, Tate & Lyle provided guidance for the first half of fiscal year 2026, indicating that Group revenue is expected to decline by 3% to 4% in constant currency, compared to pro forma comparatives, due to a challenging market environment. The company noted a slowdown in demand, particularly in the Americas, where revenue is expected to be slightly lower due to softer consumer demand in North America. In Europe, Middle East, and Africa, revenue is projected to be mid-single-digit lower, and in Asia Pacific, it is expected to be broadly in line despite tariffs. EBITDA for the first half is anticipated to be high single-digit percent lower, reflecting top-line softness and ongoing growth investments. For the full year ending March 31, 2026, revenue and EBITDA are expected to decline by low single-digit percent. Despite these challenges, the company is optimistic about future growth driven by the CP Kelco combination, with the cross-selling pipeline more than doubling in value in the last two months.Tate & Lyle Financial Statement Overview
Summary
Tate & Lyle's financial performance shows stable revenue and equity growth but faces challenges with profitability and cash flow consistency. The company needs to improve operational efficiencies and manage capital expenditures better to enhance its financial standing.Income Statement
Tate & Lyle's income statement shows a stable revenue base with a slight growth in recent years, though it's lower than previous highs. Gross profit margins remain robust, indicating efficient cost management. However, net income has fluctuated, reflecting volatility in profitability. The decline in EBIT and EBITDA margins compared to earlier years suggests pressure on operating efficiency.72
Positive
Balance Sheet
The balance sheet reflects a moderate level of leverage with a manageable debt-to-equity ratio. Stockholders' equity has grown, enhancing financial stability. Yet, the high total liabilities could pose risks if not managed properly. The equity ratio indicates a solid equity base relative to total assets, supporting long-term financial health.68
Positive
Cash Flow
Cash flows have been mixed, with operating cash flow covering net income consistently. However, free cash flow has experienced volatility, with recent negative free cash flow indicating pressures from capital expenditures and operational constraints. The ability to generate consistent free cash flow is crucial for future growth.65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 1.74B | 1.65B | 1.75B | 1.38B | 1.21B |
| Gross Profit | 1.56B | 706.00M | 851.00M | 733.00M | 514.00M | 481.00M |
| EBITDA | 338.00M | 254.00M | 345.00M | 279.00M | 168.00M | 292.00M |
| Net Income | 251.00M | 143.00M | 188.00M | 190.00M | 236.00M | 253.00M |
Balance Sheet | ||||||
| Total Assets | 2.21B | 3.73B | 2.28B | 2.51B | 3.25B | 2.97B |
| Cash, Cash Equivalents and Short-Term Investments | 594.00M | 334.00M | 437.00M | 475.00M | 112.00M | 371.00M |
| Total Debt | 555.00M | 1.31B | 590.00M | 713.00M | 679.00M | 786.00M |
| Total Liabilities | 1.02B | 2.14B | 1.04B | 1.32B | 1.63B | 1.51B |
| Stockholders Equity | 1.19B | 1.59B | 1.24B | 1.19B | 1.62B | 1.45B |
Cash Flow | ||||||
| Free Cash Flow | 171.00M | 43.00M | 98.00M | -12.00M | -45.00M | 217.00M |
| Operating Cash Flow | 282.00M | 164.00M | 208.00M | 66.00M | 103.00M | 369.00M |
| Investing Cash Flow | 176.00M | -630.00M | -20.00M | 835.00M | -113.00M | -205.00M |
| Financing Cash Flow | -154.00M | 367.00M | -215.00M | -598.00M | -247.00M | -29.00M |
Tate & Lyle Technical Analysis
Negative
20.11
Price Trends
24.03
Negative
26.36
Negative
27.47
Negative
Market Momentum
-0.88
Negative
34.88
Neutral
21.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TATYY, the sentiment is Negative. The current price of 20.11 is below the 20-day moving average (MA) of 20.31, below the 50-day MA of 24.03, and below the 200-day MA of 27.47, indicating a bearish trend. The MACD of -0.88 indicates Negative momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 21.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
| ― | $9.05B | 7.38 | 31.76% | ― | 1.81% | 24.67% | |
| ― | $7.40B | 11.29 | 17.11% | 2.79% | -5.16% | 4.95% | |
| ― | $8.97B | 15.01 | 15.64% | 5.18% | 6.40% | 6.17% | |
| ― | $8.60B | 29.64 | 16.22% | 2.40% | <0.01% | -51.18% | |
| ― | $2.24B | 28.08 | 3.41% | 5.06% | 6.97% | -66.75% | |
| ― | $8.33B | 9.80 | 9.65% | 8.14% | -4.11% | 72.17% | |
| ― | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
TATYY
Tate & Lyle
20.30
-17.93
-46.90%
CPB
Campbell Soup
30.13
-14.26
-32.12%
CAG
Conagra Brands
17.19
-9.72
-36.12%
PPC
Pilgrim's Pride
38.10
-5.32
-12.25%
INGR
Ingredion
115.41
-15.40
-11.77%
LW
Lamb Weston Holdings
61.73
-13.77
-18.24%
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.