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TATE

Tate & Lyle LSE:TATE Stock Report

Last Price

UK£6.80

Market Cap

UK£2.7b

7D

-0.5%

1Y

-15.0%

Updated

30 Sep, 2022

Data

Company Financials +
TATE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends1/6

TATE Stock Overview

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.

Tate & Lyle Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tate & Lyle
Historical stock prices
Current Share PriceUK£6.80
52 Week HighUK£9.13
52 Week LowUK£6.48
Beta0.42
1 Month Change-11.02%
3 Month Change-10.55%
1 Year Change-15.04%
3 Year Change-16.83%
5 Year Change-12.02%
Change since IPO45.71%

Recent News & Updates

Aug 23
We Think Tate & Lyle (LON:TATE) Can Stay On Top Of Its Debt

We Think Tate & Lyle (LON:TATE) Can Stay On Top Of Its Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jun 29
Tate & Lyle (LON:TATE) Will Pay A Smaller Dividend Than Last Year

Tate & Lyle (LON:TATE) Will Pay A Smaller Dividend Than Last Year

Tate & Lyle plc ( LON:TATE ) is reducing its dividend to UK£0.13 on the 5th of August. The yield is still above the...

Shareholder Returns

TATEGB FoodGB Market
7D-0.5%-2.6%-1.7%
1Y-15.0%-31.8%-15.1%

Return vs Industry: TATE exceeded the UK Food industry which returned -33.6% over the past year.

Return vs Market: TATE exceeded the UK Market which returned -16.2% over the past year.

Price Volatility

Is TATE's price volatile compared to industry and market?
TATE volatility
TATE Average Weekly Movement2.3%
Food Industry Average Movement4.8%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.8%

Stable Share Price: TATE is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: TATE's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19034,591Nick Hamptonhttps://www.tateandlyle.com

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 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.

Tate & Lyle Fundamentals Summary

How do Tate & Lyle's earnings and revenue compare to its market cap?
TATE fundamental statistics
Market CapUK£2.71b
Earnings (TTM)UK£26.00m
Revenue (TTM)UK£1.38b

104.1x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TATE income statement (TTM)
RevenueUK£1.38b
Cost of RevenueUK£696.00m
Gross ProfitUK£679.00m
Other ExpensesUK£653.00m
EarningsUK£26.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Nov 10, 2022

Earnings per share (EPS)0.065
Gross Margin49.38%
Net Profit Margin1.89%
Debt/Equity Ratio38.3%

How did TATE perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

334%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TATE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TATE?

Other financial metrics that can be useful for relative valuation.

TATE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA13.1x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

How does TATE's PE Ratio compare to its peers?

TATE PE Ratio vs Peers
The above table shows the PE ratio for TATE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.5x
CWK Cranswick
13.9x4.3%UK£1.4b
ABF Associated British Foods
12.6x5.7%UK£10.0b
PFD Premier Foods
10.6x6.7%UK£819.9m
BAKK Bakkavor Group
9x6.1%UK£521.5m
TATE Tate & Lyle
104.1x31.3%UK£2.7b

Price-To-Earnings vs Peers: TATE is expensive based on its Price-To-Earnings Ratio (104.1x) compared to the peer average (11.5x).


Price to Earnings Ratio vs Industry

How does TATE's PE Ratio compare vs other companies in the European Food Industry?

Price-To-Earnings vs Industry: TATE is expensive based on its Price-To-Earnings Ratio (104.1x) compared to the European Food industry average (14.5x)


Price to Earnings Ratio vs Fair Ratio

What is TATE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TATE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio104.1x
Fair PE Ratio24.8x

Price-To-Earnings vs Fair Ratio: TATE is expensive based on its Price-To-Earnings Ratio (104.1x) compared to the estimated Fair Price-To-Earnings Ratio (24.8x).


Share Price vs Fair Value

What is the Fair Price of TATE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TATE (£6.8) is trading below our estimate of fair value (£11.01)

Significantly Below Fair Value: TATE is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Tate & Lyle forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


31.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TATE's forecast earnings growth (31.3% per year) is above the savings rate (0.9%).

Earnings vs Market: TATE's earnings (31.3% per year) are forecast to grow faster than the UK market (8.9% per year).

High Growth Earnings: TATE's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TATE's revenue (9.4% per year) is forecast to grow faster than the UK market (4.4% per year).

High Growth Revenue: TATE's revenue (9.4% 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 (16.3%).


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Past Performance

How has Tate & Lyle performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-14.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TATE has a large one-off loss of £97.0M impacting its March 31 2022 financial results.

Growing Profit Margin: TATE's current net profit margins (1.9%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: TATE's earnings have declined by 14% per year over the past 5 years.

Accelerating Growth: TATE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TATE had negative earnings growth (-70.8%) over the past year, making it difficult to compare to the Food industry average (8.2%).


Return on Equity

High ROE: TATE's Return on Equity (1.6%) is considered low.


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Financial Health

How is Tate & Lyle's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TATE's short term assets (£2.4B) exceed its short term liabilities (£780.0M).

Long Term Liabilities: TATE's short term assets (£2.4B) exceed its long term liabilities (£851.0M).


Debt to Equity History and Analysis

Debt Level: TATE's net debt to equity ratio (31.5%) is considered satisfactory.

Reducing Debt: TATE's debt to equity ratio has reduced from 50.8% to 38.3% over the past 5 years.

Debt Coverage: TATE's debt is not well covered by operating cash flow (16.6%).

Interest Coverage: TATE's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


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Dividend

What is Tate & Lyle current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.21%

Current Dividend Yield

Dividend Yield vs Market

Tate & Lyle Dividend Yield vs Market
How does Tate & Lyle dividend yield compare to the market?
SegmentDividend Yield
Company (Tate & Lyle)3.2%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.1%
Industry Average (Food)3.1%
Analyst forecast in 3 Years (Tate & Lyle)3.1%

Notable Dividend: TATE's dividend (3.21%) is higher than the bottom 25% of dividend payers in the UK market (2.15%).

High Dividend: TATE's dividend (3.21%) is low compared to the top 25% of dividend payers in the UK market (6.29%).


Stability and Growth of Payments

Stable Dividend: TATE's dividend payments have been volatile in the past 10 years.

Growing Dividend: TATE's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (334.3%), TATE's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: TATE is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Nick Hampton (55 yo)

8yrs

Tenure

UK£2,409,000

Compensation

Mr. Nick Hampton, MA (Hons), has been 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. Hampton j...


CEO Compensation Analysis

Nick Hampton's Compensation vs Tate & Lyle Earnings
How has Nick Hampton's remuneration changed compared to Tate & Lyle's earnings?
DateTotal Comp.SalaryCompany Earnings
Mar 31 2022UK£2mUK£685k

UK£26m

Sep 30 2021n/an/a

UK£220m

Jun 30 2021n/an/a

UK£237m

Mar 31 2021UK£3mUK£665k

UK£89m

Dec 31 2020n/an/a

UK£124m

Sep 30 2020n/an/a

UK£159m

Jun 30 2020n/an/a

UK£202m

Mar 31 2020UK£2mUK£665k

UK£245m

Dec 31 2019n/an/a

UK£238m

Sep 30 2019n/an/a

UK£231m

Jun 30 2019n/an/a

UK£206m

Mar 31 2019UK£3mUK£665k

UK£181m

Sep 30 2018n/an/a

UK£220m

Jun 30 2018n/an/a

UK£242m

Mar 31 2018UK£3mUK£526k

UK£263m

Sep 30 2017n/an/a

UK£250m

Jun 30 2017n/an/a

UK£253m

Mar 31 2017UK£3mUK£513k

UK£255m

Dec 31 2016n/an/a

UK£219m

Sep 30 2016n/an/a

UK£183m

Jun 30 2016n/an/a

UK£152m

Mar 31 2016UK£2mUK£495k

UK£121m

Compensation vs Market: Nick's total compensation ($USD2.68M) is about average for companies of similar size in the UK market ($USD2.67M).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TATE's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: TATE's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

LSE:TATE Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
04 Oct 21BuyUK£68,380Gerard MurphyIndividual8,571.43UK£7.98
04 Oct 21BuyUK£49,736Warren TuckerIndividual6,241.71UK£7.97

Ownership Breakdown

What is the ownership structure of TATE?
Owner TypeNumber of SharesOwnership Percentage
Public Companies171,2980.04%
Individual Insiders1,030,6080.3%
Private Companies1,475,4610.4%
State or Government2,169,6610.5%
Employee Share Scheme3,696,2020.9%
General Public39,928,58510.0%
Institutions349,678,35687.8%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 57.9% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.67%
Columbia Management Investment Advisers, LLC
42,479,094£288.9m-8.6%0.09%
6.89%
BlackRock, Inc.
27,412,641£186.4m16.6%no data
4.43%
The Vanguard Group, Inc.
17,621,410£119.8m-0.16%no data
4.06%
Norges Bank Investment Management
16,181,740£110.0m16.42%0.02%
2.5%
Legal & General Investment Management Limited
9,934,118£67.6m10.72%0.02%
2.28%
Deutsche Asset & Wealth Management
9,080,109£61.7m5.32%0.03%
2.06%
FMR LLC
8,216,831£55.9m17.19%0.01%
1.98%
LSV Asset Management
7,893,646£53.7m-10.49%0.12%
1.98%
Dimensional Fund Advisors LP
7,882,580£53.6m-0.76%0.01%
1.95%
State Street Global Advisors, Inc.
7,754,327£52.7m-5.28%no data
1.8%
Natixis, Investment Banking and Corporate Banking Investments
7,174,312£48.8m-8.54%0.15%
1.7%
Black Creek Investment Management Inc.
6,771,107£46.0m-12.17%0.78%
1.69%
Fidelity International Ltd
6,719,310£45.7m1.51%0.03%
1.52%
J.P. Morgan Asset Management, Inc.
6,050,396£41.1m11.39%0.01%
1.35%
Jupiter Fund Management Plc
5,387,746£36.6m-3.08%0.13%
1.3%
Schroder Investment Management Limited
5,183,820£35.2m-13.02%0.03%
1.3%
Amundi Asset Management
5,164,677£35.1m27.95%0.01%
1.25%
M&G Investment Management Limited
4,986,080£33.9m-49.19%0.08%
1.22%
Societe Generale Group, Banking Investments
4,866,689£33.1m-7.93%0.37%
1.08%
ANIMA Asset Management Limited
4,318,272£29.4m8.07%9.69%
1.05%
HSBC Global Asset Management (UK) Limited
4,191,262£28.5m25.11%0.03%
0.99%
Baring Asset Management Limited
3,951,416£26.9m5.97%0.37%
0.97%
Janus Henderson Group plc
3,870,996£26.3m-15.4%0.02%
0.94%
Allianz Asset Management AG
3,745,991£25.5m107.63%0.02%
0.93%
Tate & Lyle Plc ESOP
3,696,202£25.1m-17.39%no data

Company Information

Tate & Lyle plc's 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
  • Implied Market Cap: UK£2.707b
  • Shares outstanding: 398.15m
  • Website: https://www.tateandlyle.com

Number of Employees


Location

  • Tate & Lyle plc
  • 5 Marble Arch
  • London
  • Greater London
  • W1H 7EJ
  • United Kingdom


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TATY.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 1990
TATY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
TATELSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
TLYBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
TATELBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
BD15LSE (London Stock Exchange)6 .5% CUM PRF GBP1GBGBPAug 1996

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.