Tate & Lyle
Market Cap
UK£3.7b
Last Updated
2020/02/20 20:41 UTC
Data Sources
Company Financials +
Executive Summary
Tate & 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.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Tate & Lyle's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TATE has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.6%
TATE
-0.4%
GB Food
-0.4%
GB Market
1 Year Return
9.1%
TATE
10.0%
GB Food
6.6%
GB Market
Return vs Industry: TATE exceeded the UK Food industry which returned 8.5% over the past year.
Return vs Market: TATE exceeded the UK Market which returned 6.2% over the past year.
Shareholder returns
| TATE | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | -0.4% | -0.4% |
| 30 Day | -1.1% | 0.1% | -1.7% |
| 90 Day | 12.4% | 6.9% | 5.4% |
| 1 Year | 13.6%9.1% | 12.8%10.0% | 12.4%6.6% |
| 3 Year | 21.1%6.7% | 9.0%1.9% | 18.5%3.4% |
| 5 Year | 65.2%32.5% | 7.1%-3.6% | 35.8%4.7% |
Price Volatility Vs. Market
How volatile is Tate & Lyle's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Tate & Lyle (LON:TATE) Has A Pretty Healthy Balance Sheet3 weeks ago | Simply Wall St
Should You Be Impressed By Tate & Lyle plc's (LON:TATE) ROE?1 month ago | Simply Wall St
Read This Before Buying Tate & Lyle plc (LON:TATE) For Its DividendValuation
Is Tate & Lyle undervalued compared to its fair value and its price relative to the market?
36.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TATE (£7.94) is trading below our estimate of fair value (£12.5)
Significantly Below Fair Value: TATE is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TATE is good value based on its PE Ratio (15.9x) compared to the Food industry average (16.8x).
PE vs Market: TATE is good value based on its PE Ratio (15.9x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: TATE is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: TATE is overvalued based on its PB Ratio (2.7x) compared to the GB Food industry average (1.2x).
Next Steps
Future Growth
How is Tate & Lyle forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
5.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TATE's forecast earnings growth (5.6% per year) is above the savings rate (0.5%).
Earnings vs Market: TATE's earnings (5.6% per year) are forecast to grow slower than the UK market (12.2% per year).
High Growth Earnings: TATE's earnings are forecast to grow, but not significantly.
Revenue vs Market: TATE's revenue (1.2% per year) is forecast to grow slower than the UK market (3.5% per year).
High Growth Revenue: TATE's revenue (1.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TATE's Return on Equity is forecast to be low in 3 years time (14.2%).
Next Steps
Past Performance
How has Tate & Lyle performed over the past 5 years?
23.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TATE has high quality earnings.
Growing Profit Margin: TATE's current net profit margins (8.1%) are lower than last year (8.2%).
Past Earnings Growth Analysis
Earnings Trend: TATE's earnings have grown significantly by 23.8% per year over the past 5 years.
Accelerating Growth: TATE's earnings growth over the past year (5%) is below its 5-year average (23.8% per year).
Earnings vs Industry: TATE earnings growth over the past year (5%) underperformed the Food industry 8.5%.
Return on Equity
High ROE: TATE's Return on Equity (16.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Tate & Lyle's financial position?
Financial Position Analysis
Short Term Liabilities: TATE's short term assets (£1.1B) exceed its short term liabilities (£677.0M).
Long Term Liabilities: TATE's short term assets (£1.1B) exceed its long term liabilities (£806.0M).
Debt to Equity History and Analysis
Debt Level: TATE's debt to equity ratio (44.1%) is considered high.
Reducing Debt: TATE's debt to equity ratio has reduced from 74.4% to 44.1% over the past 5 years.
Debt Coverage: TATE's debt is well covered by operating cash flow (57.4%).
Interest Coverage: TATE's interest payments on its debt are well covered by EBIT (11.1x coverage).
Balance Sheet
Inventory Level: TATE has a high level of physical assets or inventory.
Debt Coverage by Assets: TATE's debt is covered by short term assets (assets are 1.9x debt).
Next Steps
Dividend
What is Tate & Lyle's current dividend yield, its reliability and sustainability?
3.72%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TATE's dividend (3.7%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).
High Dividend: TATE's dividend (3.7%) is low compared to the top 25% of dividend payers in the UK market (5.15%).
Stability and Growth of Payments
Stable Dividend: TATE's dividends per share have been stable in the past 10 years.
Growing Dividend: TATE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (59.4%), TATE's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TATE's dividends in 3 years are forecast to be covered by earnings (55.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Nick Hampton (52yo)
1.8yrs
Tenure
UK£3,045,000
Compensation
Mr. Nick Hampton, MA (Hons) has been the Chief Executive of Tate & Lyle plc since April 1, 2018 and has been its Director since September 2014. He joined Tate & Lyle plc group in September 2014. Mr. Hampto ...
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD3.94M) is above average for companies of similar size in the UK market ($USD2.34M).
Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive & Executive Director | 1.8yrs | UK£3.05m | 0.072% £2.6m | |
| CFO & Director | 1.5yrs | UK£1.15m | 0.0092% £338.0k | |
| President of Global Operations | 0yrs | no data | no data | |
| Group Vice President of Investor & Media Relations | 0yrs | no data | no data | |
| Executive VP & General Counsel | 1.4yrs | no data | no data | |
| Chief Human Resource Officer | 1.4yrs | no data | no data | |
| Executive Vice President of Corporate Affairs | 5.3yrs | no data | 0.031% £1.1m | |
| President of Primary Products | 1.8yrs | no data | no data | |
| President of Innovation & Commercial Development | 0yrs | no data | no data | |
| President of Food & Beverage Solutions of Asia Pacific | 0.4yrs | no data | no data |
1.5yrs
Average Tenure
52yo
Average Age
Experienced Management: TATE's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive & Executive Director | 1.8yrs | UK£3.05m | 0.072% £2.6m | |
| CFO & Director | 1.5yrs | UK£1.15m | 0.0092% £338.0k | |
| Independent Chairman | 2.8yrs | UK£350.00k | 0.0043% £158.1k | |
| Independent Non Executive Director | 7.2yrs | UK£82.00k | 0.0019% £68.2k | |
| Independent Non-Executive Director | 3.8yrs | UK£68.00k | 0.0032% £118.7k | |
| Senior Independent Director | 0.6yrs | UK£68.00k | 0.0022% £79.2k | |
| Independent Non-Executive Director | 1.3yrs | UK£25.00k | 0.00093% £34.3k | |
| Independent Non-Executive Director | 0.6yrs | no data | no data | |
| Independent Non-Executive Director & Chairman of Research Advisory Group | 7.8yrs | UK£93.00k | 0.0022% £79.2k | |
| Independent Non-Executive Director | 3.8yrs | UK£68.00k | 0.0011% £39.4k |
3.3yrs
Average Tenure
57yo
Average Age
Experienced Board: TATE's board of directors are considered experienced (3.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Tate & Lyle plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Tate & Lyle plc
- Ticker: TATE
- Exchange: LSE
- Founded: 1903
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: UK£3.685b
- Shares outstanding: 465.81m
- Website: https://www.tateandlyle.com
Number of Employees
Location
- Tate & Lyle plc
- 1 Kingsway
- London
- Greater London
- WC2B 6AT
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TATY.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Mar 1990 | |
| TATY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| TATE | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| TLY | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| TATEL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| BD15 | LSE (London Stock Exchange) | 6 .5% CUM PRF GBP1 | GB | GBP | Aug 1996 |
Biography
Tate & 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 two divisions, Food & Beverage Solutions and Primary Products. The company offers texturants, including corn-based starches and clean-label starches; sweeteners, such as high intensity sweeteners and specialty sweeteners; health and wellness ingredients comprising dietary fibers and oat proteins; and stabilizers. It also provides industrial starches and acidulants; commodities, such as corn gluten meal and corn gluten feed; and ethanol. In addition, the company is involved in in-house treasury, pension, and reinsurance businesses; citric acid and sucralose production; and research and development businesses, as well as the provision of Internet services. Tate & Lyle PLC was incorporated in 1903 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 20:41 |
| End of Day Share Price | 2020/02/20 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.