Tate & Lyle (TATYY) AI Stock Analysis

Compare

18 Followers

Top Page

Tate & Lyle

(OTC:TATYY)

Rating:67Neutral

Price Target:

$31.00

▲(8.35% Upside)

Tate & Lyle's overall stock score is driven by strong earnings call performance and stable financials, despite valuation concerns and technical neutrality. The successful integration of CP Kelco and strategic focus on growth markets are positive, but profitability and cash flow challenges remain.

Tate & Lyle (TATYY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$3.19B

Dividend Yield3.6%

Average Volume (3M)220.00

Price to Earnings (P/E)40.0

Beta (1Y)0.55

Revenue Growth6.97%

EPS Growth-66.75%

CountryUS

Employees3,318

SectorConsumer Defensive

Sector Strength57

IndustryPackaged Foods

Share Statistics

EPS (TTM)1.08

Shares Outstanding111,361,305

10 Day Avg. Volume629

30 Day Avg. Volume220

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.32

Enterprise Value/Revenue2.69

Enterprise Value/Gross Profit2.69

Enterprise Value/Ebitda12.43

Forecast

1Y Price Target

$31.00

Price Target Upside8.35% Upside

Rating ConsensusHold

Number of Analyst Covering1

Tate & Lyle Business Overview & Revenue Model

Company DescriptionTate & Lyle PLC, together with its subsidiaries, provides ingredients and solutions to the food, beverage, and other industries in the United States, the United Kingdom, other European countries, and internationally. It operates through three segments: Food & Beverage Solutions, Sucralose, and Primary Products. The company offers texturants; nutritive sweeteners, such as high fructose corn syrup and dextrose; health and wellness ingredients; and stabilizers. It also provides industrial starches for paper, packaging, and industrial adhesives; acidulants, such as citric acid; and commodities comprising corn gluten feed and meal for animal nutrition, as well as corn oil and ethanol. In addition, the company engages in the treasury and insurance businesses; and provision of research and development services. Tate & Lyle PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.

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

(Q4-2025)

% Change Since: -9.63%|

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a strong financial performance and successful integration of CP Kelco, indicating a positive transformation into a growth-focused specialty business. However, challenges such as revenue decline in certain segments, trade tariffs, and higher tax rates were also highlighted.

Q4-2025 Updates

Positive Updates

Successful Integration of CP Kelco

Following the combination with CP Kelco, Tate & Lyle's transformation into a growth-focused specialty business is complete. The integration is progressing well, with cost synergies of $50 million targeted by the end of the 2027 financial year, and revenue synergies expected to ramp up.

Strong Financial Performance

The enlarged Tate & Lyle delivered EBITDA growth of 18% to GBP 381 million, with profit before tax 9% higher at GBP 270 million. Earnings per share increased by 4% to 50.3p.

Significant Revenue from Innovation

Revenue from new products grew strongly by 9% on a like-for-like basis. More than 60% of revenue from the new business pipeline involves the formulation of one or more new products.

Productivity Savings Achieved

Delivered an excellent $50 million of productivity savings, with $33 million from operational and supply chain efficiencies and $17 million from strong cost management and SG&A savings.

Geographic Expansion

In Asia Pacific, revenue more than doubled to $500 million, reflecting the company's strategic focus on faster-growing markets.

Negative Updates

Revenue Decline in Food & Beverage Solutions

Revenue in Food & Beverage Solutions was 7% lower, reflecting decreases from input cost deflation, mix, and price.

Impact of Trade Tariffs

The imposition of trade tariffs, particularly between the U.S. and China, has increased costs and created uncertainty for the company and its customers.

Exit from Tapioca Facility in Thailand

Net pretax exceptional charges were GBP 96 million, with GBP 59 million related to the exit from the tapioca facility in Thailand.

Higher Effective Tax Rate

The adjusted effective tax rate increased to 22.6%, 150 basis points above the prior year, due to CP Kelco's operations in higher tax jurisdictions.

Company Guidance

In the recent call, Tate & Lyle provided detailed guidance showcasing significant metrics reflecting their strategic progress and financial performance. For the fiscal year ended March 31, 2025, the company reported a compound annual growth rate (CAGR) in revenue of 7% over the past five years, with EBITDA growing by 10% and EBITDA margins expanding by 350 basis points. They have generated over GBP 700 million in free cash flow and returned over GBP 1.2 billion to shareholders through dividends and buybacks. The combination with CP Kelco led to a 3% decline in pro forma revenue but delivered a 5% EBITDA growth for the enlarged Tate & Lyle, bringing the EBITDA margin to an attractive 21%. The Food & Beverage Solutions segment saw a 7% revenue decrease, though volume grew by 3% and EBITDA by 2%, with margins increasing by 200 basis points to 23.1%. Sucralose revenue grew by 16%, with EBITDA rising 18% and margins up 40 basis points to 31.1%. The company achieved $50 million in productivity savings and aims to meet a $150 million target by 2028, supported by digital enablement initiatives. For the 2026 fiscal year, capital expenditure is projected between GBP 120 million and GBP 140 million, while net debt-to-EBITDA leverage improved to 2.2x. The adjusted effective tax rate for the upcoming year is expected to be in the range of 23% to 25%, with growth prospects in Asia Pacific and revenue synergies from the CP Kelco integration being key focus areas.

Tate & Lyle Financial Statement Overview

Summary

Tate & Lyle's financial performance shows stable revenue and equity, but faces challenges with profitability and cash flow consistency. Operational efficiencies need improvement and capital expenditures require careful management.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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

Technical Analysis Sentiment

Negative

Last Price28.61

Price Trends

50DMA

28.69

Negative

100DMA

28.47

Positive

200DMA

30.34

Negative

Market Momentum

MACD

0.06

Negative

RSI

48.23

Neutral

STOCH

47.28

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 28.61 is below the 20-day moving average (MA) of 28.79, below the 50-day MA of 28.69, and below the 200-day MA of 30.34, indicating a bearish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 48.23 is Neutral, neither overbought nor oversold. The STOCH value of 47.28 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POST	75 Outperform	$5.91B	18.58	9.23%	―	0.80%	10.43%
INGR	75 Outperform	$8.11B	12.33	17.11%	2.54%	-5.16%	4.95%
CAG	70 Outperform	$9.29B	8.10	13.27%	7.30%	-3.64%	231.77%
TATYY	67 Neutral	$3.19B	39.98	3.41%	3.60%	6.97%	-66.75%
Sector *	63 Neutral	$20.97B	14.57	-8.07%	3.14%	2.79%	-9.97%
JJSF	61 Neutral	$2.20B	26.28	8.79%	2.80%	0.50%	-4.46%
SJM	56 Neutral	$11.89B	22.22	-17.87%	3.92%	6.69%	-261.87%

* Consumer Defensive Sector Average

Performance Comparison

TATYY

Tate & Lyle

28.61

-4.45

-13.46%

CAG

Conagra Brands

19.17

-10.16

-34.64%

JJSF

J & J Snack Foods

111.29

-58.24

-34.35%

SJM

JM Smucker

110.76

-5.47

-4.71%

POST

Post Holdings

108.53

-6.52

-5.67%

INGR

Ingredion

125.93

-3.35

-2.59%

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.Date of analysis: Aug 16, 2025