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Tate & Lyle (TATYY)
OTHER OTC:TATYY
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Tate & Lyle
(OTC:TATYY)
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Rating:63Neutral
Price Target:
$23.50
▲(19.41% Upside)
Action:ReiteratedDate:12/07/25
Tate & Lyle's overall stock score reflects stable financial performance with challenges in profitability and cash flow. Technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation. Despite revenue and EBITDA declines, the earnings call highlighted potential growth opportunities, balancing the overall outlook.
Positive Factors
CP Kelco combination / cross-selling
The rapid doubling of the cross-selling pipeline reflects durable commercial synergies from the CP Kelco integration. A larger combined portfolio improves customer stickiness, broadens addressable applications, and should sustain multi-quarter revenue diversification and margin upside as integration progresses and scale benefits materialize.
Strong sucralose demand
Persistent sucralose demand indicates structural product leadership and steady end-market acceptance. High utilization supports production leverage and cash generation, underpinning margins and funding investments. Continued strong demand provides a stable revenue base amid broader category softness.
Balance sheet stability
A manageable leverage profile and growing shareholders' equity enhance financial flexibility to fund integration, R&D and capex without immediate refinancing stress. This structural stability supports long-term investment in product innovation and resilience through near-term demand cycles.
Negative Factors
Guided revenue and EBITDA declines
Guidance for lower revenue and materially weaker EBITDA signals persistent demand weakness and margin pressure. Extended top-line contraction reduces internal funding for growth initiatives, risks slower deleveraging and may force tougher cost or pricing actions that could impair long-term strategic investments.
Volatile free cash flow
Intermittent negative free cash flow undermines the company's ability to consistently fund dividends, M&A or capex from operations. Structural FCF volatility elevates refinancing and liquidity risk, constrains strategic flexibility, and increases reliance on external financing during multi-quarter investment or integration phases.
Tariff and supply-route risks
Tariffs and disrupted Brazil-to-North America supply routes create structural cost and reliability risks. Persistent trade barriers can erode margins, force supply-chain reconfiguration, and increase capex or logistics costs. These regulatory/trade exposures could pressure competitiveness in key markets over quarters.
Tate & Lyle (TATYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.14B
Dividend Yield5.06%
Average Volume (3M)2.30K
Price to Earnings (P/E)9.1
Beta (1Y)0.46
Revenue Growth30.86%
EPS Growth-79.99%
CountryUS
Employees3,318
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)1.12
Shares Outstanding111,361,694
10 Day Avg. Volume956
30 Day Avg. Volume2,299
Financial Highlights & Ratios
PEG Ratio-0.62
Price to Book (P/B)4.06
Price to Sales (P/S)3.72
P/FCF Ratio150.07
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue1.45
Enterprise Value/Gross Profit-48.32
Enterprise Value/Ebitda10.73
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.19
Revenue Forecast (FY)$2.73B
Tate & Lyle Business Overview & Revenue Model
Company DescriptionTate & Lyle is a global provider of food and beverage ingredients, focused on creating sustainable and innovative solutions for the food industry. The company operates primarily in two segments: Food & Beverage Solutions and Sucralose. Its core products include sweeteners, starches, and fibers that enhance the taste, texture, and nutritional profile of a wide range of food and beverage products. With a strong emphasis on sustainability, Tate & Lyle is committed to reducing its environmental impact and helping its customers meet consumer demands for healthier and more sustainable options.
How the Company Makes MoneyTate & Lyle generates revenue through the sale of its diverse range of ingredients and solutions to food and beverage manufacturers around the world. The primary revenue streams include the sale of sweeteners, starches, and fibers, which are used in various applications such as baked goods, dairy products, beverages, and snacks. The company has established significant partnerships with global food brands, enabling it to leverage its innovative product portfolio and expertise in formulation. Additionally, Tate & Lyle benefits from its focus on sustainability, which attracts customers seeking environmentally friendly solutions. The combination of these factors contributes to the company's revenue growth and financial performance.
Tate & Lyle Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
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 balance sheet is stable but has potential leverage risks, and operational efficiencies need improvement.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 | 1.77B | 1.74B | 1.65B | 1.75B | 1.38B | 1.21B |
| Gross Profit | -53.00M | 706.00M | 851.00M | 733.00M | 514.00M | 481.00M |
| EBITDA | 238.68M | 254.00M | 345.00M | 279.00M | 168.00M | 292.00M |
| Net Income | 33.87M | 143.00M | 188.00M | 190.00M | 236.00M | 253.00M |
Balance Sheet | ||||||
| Total Assets | 3.60B | 3.73B | 2.28B | 2.51B | 3.25B | 2.97B |
| Cash, Cash Equivalents and Short-Term Investments | 325.24M | 334.00M | 437.00M | 475.00M | 112.00M | 371.00M |
| Total Debt | 1.29B | 1.31B | 590.00M | 713.00M | 679.00M | 786.00M |
| Total Liabilities | 2.06B | 2.14B | 1.04B | 1.32B | 1.63B | 1.51B |
| Stockholders Equity | 1.55B | 1.59B | 1.24B | 1.19B | 1.62B | 1.45B |
Cash Flow | ||||||
| Free Cash Flow | 69.83M | 43.00M | 98.00M | -12.00M | -45.00M | 217.00M |
| Operating Cash Flow | 119.72M | 164.00M | 208.00M | 66.00M | 103.00M | 369.00M |
| Investing Cash Flow | -53.00M | -630.00M | -20.00M | 835.00M | -113.00M | -205.00M |
| Financing Cash Flow | -69.00M | 367.00M | -215.00M | -598.00M | -247.00M | -29.00M |
Tate & Lyle Technical Analysis
Negative
19.68
Price Trends
20.56
Negative
20.21
Negative
23.79
Negative
Market Momentum
-0.38
Positive
35.69
Neutral
6.81
Positive
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 19.68 is below the 20-day moving average (MA) of 21.03, below the 50-day MA of 20.56, and below the 200-day MA of 23.79, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 35.69 is Neutral, neither overbought nor oversold. The STOCH value of 6.81 is Positive, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $9.68B | 8.73 | 27.33% | ― | 1.81% | 24.67% | |
74 Outperform | $7.10B | 9.71 | 18.05% | 2.86% | -3.83% | -2.04% | |
65 Neutral | $6.34B | 31.72 | 23.16% | 3.37% | 2.35% | 9.61% | |
63 Neutral | $2.14B | 9.08 | 2.56% | 5.06% | 30.86% | -79.99% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $7.47B | 11.49 | 14.82% | 5.64% | 2.71% | 4.90% | |
58 Neutral | $8.90B | -3.16 | -1.16% | 7.87% | -5.82% | -119.70% |
* Consumer Defensive Sector Average
TATYY
Tate & Lyle
19.28
-6.43
-25.01%
CPB
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25.06
-12.81
-33.82%
CAG
Conagra Brands
18.61
-5.55
-22.98%
PPC
Pilgrim's Pride
40.75
-3.81
-8.55%
INGR
Ingredion
112.80
-14.87
-11.65%
LW
Lamb Weston Holdings
45.65
-4.63
-9.20%
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.