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Tate & Lyle Plc Sponsored Adr (TATYY)
:TATYY
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Tate & Lyle
(OTC:TATYY)
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Rating:71Outperform
Price Target:
$32.00
▲(51.52% Upside)
Tate & Lyle's overall stock score reflects solid financial performance and positive earnings call sentiment, offset by valuation concerns. The company's strategic growth initiatives and strong presence in Asia Pacific are significant positives, while profitability and cash flow challenges remain areas to watch.
Tate & Lyle (TATYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.33B
Dividend Yield4.88%
Average Volume (3M)64.00
Price to Earnings (P/E)33.5
Beta (1Y)0.56
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. Volume131
30 Day Avg. Volume64
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 Cap1.80
Enterprise Value/Revenue2.69
Enterprise Value/Gross Profit2.69
Enterprise Value/Ebitda12.43
Forecast
1Y Price Target
$32.00Price Target Upside51.52% Upside
Rating ConsensusModerate Buy
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 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: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including the successful integration of CP Kelco, strong financial performance, and strategic investments in innovation and growth regions like Asia Pacific. However, challenges such as revenue decline in key segments, strategic facility closures, and trade tariff impacts were noted. Despite these challenges, the overall sentiment leans towards growth and strategic progress.Q4-2025 Updates
Positive Updates
Successful Integration of CP Kelco
The integration of CP Kelco was highlighted as a significant strategic milestone, completing the transformation into a growth-focused specialty business. The combined business is expected to deliver substantial revenue and cost synergies.
Strong Financial Performance
Tate & Lyle delivered robust financial performance with an 18% increase in EBITDA to GBP 381 million, profit before tax rising by 9% to GBP 270 million, and earnings per share increasing by 4% to 50.3p.
Productivity Savings and Innovation
Productivity savings amounted to $50 million, with significant contributions from operational and supply chain efficiencies. The company also invested $80 million in innovation, with new product revenue growing strongly by 9%.
Positive Revenue Growth in Asia Pacific
Revenue in Asia Pacific more than doubled to $500 million, highlighting strong growth in this region.
Sucralose Revenue and Margin Improvement
Sucralose had a solid year with revenue up 16% and EBITDA growing 18%, with an EBITDA margin improvement to 31.1%.
Negative Updates
Revenue Decline in Food & Beverage Solutions
Revenue in Food & Beverage Solutions declined by 7%, driven by volume growth offset by a decrease due to input cost deflation and price/mix factors.
Exit from Tapioca Facility
The company recorded a GBP 96 million pre-tax exceptional charge, primarily due to the exit from the tapioca facility in Thailand as part of a strategic shift to an alternate sourcing model.
Impact of Trade Tariffs
The imposition of trade tariffs, particularly between the U.S. and China, increased costs and created uncertainty, impacting revenue growth projections.
Increased Tax Rate
The adjusted effective tax rate increased by 150 basis points to 22.6%, primarily due to CP Kelco's operations in higher tax jurisdictions.
Company Guidance
During the call, Tate & Lyle provided detailed guidance on their financial and strategic outlook. The company has achieved a 7% compound annual revenue growth over the past five years, with EBITDA increasing by 10% and margins expanding by 350 basis points. The acquisition of CP Kelco has been central to their transformation into a growth-focused specialty business, contributing to a 3% pro forma revenue growth and a 9% increase in EBITDA. The integration has also led to significant productivity gains, including $50 million in savings, setting them on track to meet a $150 million target by 2028. Notably, Tate & Lyle has more than doubled its revenue in Asia Pacific to $500 million, with overall free cash flow exceeding GBP 700 million. Looking forward, the company expects to deliver revenue growth towards the lower end of a 4% to 6% range, with EBITDA growth outpacing revenue increases, despite potential challenges from tariffs and market uncertainties. They also highlighted their investment in innovation, with over $370 million spent over five years and a focus on expanding their solutions-based revenue. The company remains confident in their growth potential, backed by robust financial performance and strategic progress.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
21.12
Price Trends
27.83
Negative
28.45
Negative
28.80
Negative
Market Momentum
-1.40
Positive
15.72
Positive
2.31
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 21.12 is below the 20-day moving average (MA) of 26.26, below the 50-day MA of 27.83, and below the 200-day MA of 28.80, indicating a bearish trend. The MACD of -1.40 indicates Positive momentum. The RSI at 15.72 is Positive, neither overbought nor oversold. The STOCH value of 2.31 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.80B | 7.94 | 33.10% | ― | 2.06% | 63.27% | |
71 Outperform | $2.33B | 33.49 | 3.41% | 4.88% | 6.97% | -66.75% | |
69 Neutral | $7.81B | 11.92 | 15.91% | 2.65% | -5.16% | 4.95% | |
67 Neutral | $9.53B | 15.74 | 15.43% | 4.88% | 6.40% | 6.17% | |
67 Neutral | $8.64B | 27.89 | 16.43% | 2.37% | <0.01% | -51.18% | |
66 Neutral | $9.21B | 7.62 | 9.53% | 7.25% | -3.64% | 231.77% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
TATYY
Tate & Lyle
21.12
-12.89
-37.90%
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19.30
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11.73%
INGR
Ingredion
121.64
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LW
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62.01
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-6.96%
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.