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Tate & Lyle (TATYY)
OTHER OTC:TATYY
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Tate & Lyle
(OTC:TATYY)
Rating:66Neutral
Price Target:
$31.00
▲(6.46%Upside)
Tate & Lyle (TATYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.24B
Dividend Yield0.12%
Average Volume (3M)124.00
Price to Earnings (P/E)40.3
Beta (1Y)0.54
Revenue Growth6.97%
EPS Growth-66.75%
CountryUS
Employees3,318
SectorConsumer Defensive
Sector Strength55
IndustryPackaged Foods
Share Statistics
EPS (TTM)1.08
Shares Outstanding111,361,220
10 Day Avg. Volume31
30 Day Avg. Volume124
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)1.46
Price to Sales (P/S)0.00
P/FCF Ratio39.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
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 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 makes money through its two primary business segments: Food & Beverage Solutions and Sucralose. In the Food & Beverage Solutions segment, the company generates revenue by developing and selling a variety of ingredients that improve the taste, texture, and nutritional profile of food and beverages. This includes sweeteners, stabilizers, and fibers. The Sucralose segment primarily focuses on the production and sale of sucralose, a zero-calorie artificial sweetener used by food and beverage manufacturers around the world. Additionally, Tate & Lyle benefits from partnerships and collaborations with other industry players to enhance its product offerings and market reach. The company's earnings are driven by its ability to innovate and meet the growing consumer demand for healthier food options.
Tate & Lyle Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q4-2025)
| % Change Since: -8.02%|
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
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 | 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
Positive
29.12
Price Trends
29.04
Positive
28.13
Positive
31.02
Negative
Market Momentum
-0.04
Negative
57.83
Neutral
100.01
Negative
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 29.12 is above the 20-day moving average (MA) of 28.56, above the 50-day MA of 29.04, and below the 200-day MA of 31.02, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 57.83 is Neutral, neither overbought nor oversold. The STOCH value of 100.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TATYY.
Tate & Lyle Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.54B | 14.01 | 16.31% | 2.40% | -6.88% | -4.93% | |
72 Outperform | $6.00B | 19.45 | 9.15% | ― | 1.48% | 9.36% | |
70 Outperform | $9.21B | 8.03 | 13.27% | 7.29% | -3.64% | 231.77% | |
66 Neutral | $3.24B | 40.28 | 3.41% | 0.12% | 6.97% | -66.75% | |
66 Neutral | $2.28B | 30.09 | 8.20% | 2.65% | 0.49% | -12.32% | |
56 Neutral | $11.59B | 22.22 | -17.87% | 3.96% | 6.69% | -261.87% | |
53 Neutral | C$4.45B | 4.00 | -20.57% | 3.54% | 8.21% | 2.02% |
* Consumer Defensive Sector Average
Performance Comparison
TATYY
Tate & Lyle
29.12
-3.34
-10.29%
CAG
Conagra Brands
19.21
-9.43
-32.93%
JJSF
J & J Snack Foods
117.56
-46.00
-28.12%
SJM
JM Smucker
109.02
-4.52
-3.98%
POST
Post Holdings
107.81
-1.21
-1.11%
INGR
Ingredion
133.07
14.54
12.27%
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.