Tate & Lyle (TATYY) AI Stock Analysis

Tate & Lyle

(Other OTC:TATYY)

Select Model

Rating:64.5Neutral

Price Target:$32.00▲(6.07% Upside)

Action:reiterated

Date:08/20/26

The overall score reflects a mid‑quality financial profile with growing revenue, solid gross profitability and positive current free cash flow, but constrained by thinner and volatile profit margins, higher leverage and reduced returns on equity. Supportive technicals and an ongoing uptrend add positively, although overbought readings suggest limited near‑term upside. Valuation is broadly fair, with a moderate P/E multiple offset by a solid dividend yield, while the latest earnings call reinforces a neutral stance: clear strategic progress and synergy delivery, yet near‑term earnings, cash‑flow and geopolitical risks require careful monitoring.

Positive Factors

Recurring specialty ingredient modelBeing incorporated into customer formulations can create recurring demand across production cycles and make switching less attractive. The mix of functional ingredients and application support also supports value-based pricing and a durable position with food and beverage manufacturers.

Negative Factors

Higher leverage after acquisitionThe sharp increase in debt has reduced financial flexibility compared with prior years and raises the sensitivity of profits to weaker operating performance. Higher borrowings also increase financing commitments, limiting the company’s room to absorb prolonged softness or pursue further investment.

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

Market Cap: $7.16B
Dividend Yield: 3.29%
Average Volume (3M): 268
Price to Earnings (P/E): 25.4
Beta (1Y): 0.48
Revenue Growth: 21.44%
EPS Growth: 48.65%
Country: US
Employees: 4,840
Sector: Consumer Defensive
Sector Strength: 62
Industry: Packaged Foods

Tate & Lyle Business Overview & Revenue Model

Company Description

Tate & Lyle PLC, along with its subsidiaries, offers a diverse portfolio of ingredients and specialized solutions catering to the food, beverage, and other industrial sectors. Its global footprint spans the United States, the United Kingdom, continen...

How the Company Makes Money

Tate & Lyle makes money primarily by manufacturing and selling specialty food ingredients to food and beverage manufacturers, with revenue recognized from ingredient sales under supply agreements and purchase orders. Its key revenue streams come from...

Tate & Lyle Earnings Call Summary

Earnings Call Date:May 20, 2026(Q4-2026)|% Change Since:10.02%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentNeutral

Neutral — The call balances clear strategic and operational progress (successful CP Kelco integration, early cross-selling wins, productivity and cost synergies delivered ahead of plan, stronger pipeline and a resilient margin/healthy balance sheet) against near-term trading and cash-flow headwinds (like-for-like revenue/EBITDA declines, regional softness in Europe and Latin America, a delayed bio-gums benefit, below-target cash conversion and one-off exceptional charges). Management presents a cautious but constructive outlook for modest revenue growth and H2-weighted volume recovery while acknowledging risks from tariffs, geopolitical uncertainty and timing of certain savings.

Positive Updates

Successful CP Kelco Integration

Integration of CP Kelco completed smoothly without customer disruption; cross-selling pipeline more than doubled in H2 to over $100m and ~10% of the targeted $70m revenue synergies (10% of CP Kelco revenue) have been delivered to date.

Negative Updates

Like-for-like Revenue and EBITDA Declines

On an adjusted, pro forma, like-for-like constant currency basis, revenue was 3% lower and adjusted EBITDA was 3% lower (in line with October guidance); adjusted profit before tax was 5% lower at £238m and adjusted EPS reported at 40.4p.

Company Guidance

Guidance for FY2027: management expects modest constant‑currency revenue growth with volume growth weighted to the second half and broadly flat EBITDA before an approximately $20m headwind from the rescheduled bio‑gums consolidation, assuming a limited impact from the Middle East conflict and using productivity, procurement and selective pricing to mitigate cost inflation. They expect an adjusted effective tax rate of 23–25%, capital expenditure of £110–130m (FY26 capex £125m), and reaffirm a cash‑conversion target >75% (FY26 was 70% with £164m free cash flow). Balance‑sheet metrics: target net‑debt/EBITDA 1–2.5x (current 2.3x with net debt £939m), near‑term liquidity of ~£1bn plus an $800m RCF extended to 2031, weighted average cost of debt ~4% and weighted average maturity 4.7 years. Medium‑term delivery targets reiterated include revenue synergies of ~10% of CP Kelco revenue (~$70m by FY2029, ~10% achieved to date), at least $50m annualized cost synergies (target met one year early), and an increased productivity goal of $200m by FY2028 (already $53m delivered this year; $144m over three years).

Tate & Lyle Financial Statement Overview

Summary

Financial performance is mid-quality: revenue and gross profitability have grown and free cash flow has recently rebounded, but weaker and volatile profit margins, higher leverage, and lower returns on equity limit the strength of the profile.

Income Statement

63Positive

Balance Sheet

57Neutral

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.00B	2.01B	1.74B	1.65B	1.75B	1.38B
Gross Profit	-105.00M	919.00M	706.00M	851.00M	733.00M	514.00M
EBITDA	412.22M	413.00M	254.00M	345.00M	279.00M	168.00M
Net Income	97.00M	97.00M	143.00M	188.00M	190.00M	236.00M
Balance Sheet
Total Assets	3.67B	3.67B	3.73B	2.28B	2.51B	3.25B
Cash, Cash Equivalents and Short-Term Investments	344.02M	344.02M	334.00M	437.00M	475.00M	112.00M
Total Debt	1.29B	1.29B	1.31B	590.00M	713.00M	679.00M
Total Liabilities	2.07B	2.07B	2.14B	1.04B	1.32B	1.63B
Stockholders Equity	1.60B	1.60B	1.59B	1.24B	1.19B	1.62B
Cash Flow
Free Cash Flow	122.44M	123.98M	43.00M	98.00M	-12.00M	-45.00M
Operating Cash Flow	239.20M	241.87M	164.00M	208.00M	66.00M	103.00M
Investing Cash Flow	-121.89M	-122.97M	-630.00M	-20.00M	835.00M	-113.00M
Financing Cash Flow	-106.39M	-107.72M	367.00M	-215.00M	-598.00M	-247.00M

Tate & Lyle Technical Analysis

Technical Analysis SentimentPositive

Last Price30.17

Price Trends

50DMA29.95Positive

100DMA29.84Positive

200DMA25.28Positive

Market Momentum

MACD0.09Negative

RSI56.79Neutral

STOCH36.52Neutral

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 30.17 is above the 20-day moving average (MA) of 29.93, above the 50-day MA of 29.95, and above the 200-day MA of 25.28, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 36.52 is Neutral, 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 (62)

Financial Indicators

TATYY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SENEA	80Outperform	$1.08B	9.14	16.36%	―	12.46%	177.68%
MZTI	79Outperform	$2.99B	15.72	18.82%	3.64%	1.08%	14.93%
DAR	70Outperform	$8.79B	10.42	22.76%	―	15.93%	688.18%
INGR	66Neutral	$6.12B	10.43	13.46%	3.39%	-1.38%	-10.81%
TATYY	65Neutral	$3.34B	25.36	6.17%	3.29%	21.44%	48.65%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
WEST	52Neutral	$969.44M	-15.04	-24.25%	―	38.57%	29.71%

* Consumer Defensive Sector Average

Performance Comparison

TATYY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TATYY	Tate & Lyle Plc Sponsored Adr	30.17	10.93	56.83%
DAR	Darling Ingredients	55.73	22.94	69.96%
MZTI	Marzetti Company	109.74	-43.65	-28.46%
SENEA	Seneca Foods	159.78	55.54	53.28%
INGR	Ingredion	96.97	-13.55	-12.26%
WEST	Westrock Coffee Company	9.93	5.48	123.15%

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: Sep 09, 2026

Tate & Lyle AI Stock Analysis