LSE:TATE

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless 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


Market Performance


7 Day Return

-1.5%

LSE:TATE

0.4%

GB Food

1.4%

GB Market


1 Year Return

8.3%

LSE:TATE

-5.3%

GB Food

-5.7%

GB Market

TATE outperformed the Food industry which returned -4.8% over the past year.

TATE outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -4.8% over the past year.


Share holder returns

TATEIndustryMarket
7 Day-1.5%0.4%1.4%
30 Day-7.7%-3.8%-4.8%
90 Day-7.9%-7.4%-1.9%
1 Year12.8%8.3%-2.8%-5.3%-1.3%-5.7%
3 Year8.4%-4.4%-11.4%-17.8%17.6%3.6%
5 Year30.3%4.5%-4.3%-13.9%24.6%-2.0%

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

Valuation

Is Tate & Lyle undervalued based on future cash flows and its price relative to the stock market?

37%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Tate & Lyle's share price is below the future cash flow value, and at a moderate discount (> 20%).

Tate & Lyle's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Tate & Lyle is overvalued based on earnings compared to the GB Food industry average.

Tate & Lyle is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Tate & Lyle is poor value based on expected growth next year.


Price Based on Value of Assets

Tate & Lyle is overvalued based on assets compared to the GB Food industry average.


Next Steps

Future Growth

How is Tate & Lyle expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tate & Lyle's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).

Tate & Lyle's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).

Tate & Lyle's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Tate & Lyle's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Tate & Lyle's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Tate & Lyle is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

15.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Tate & Lyle's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Tate & Lyle's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Tate & Lyle's 1-year earnings growth is negative, it can't be compared to the GB Food industry average.


Return on Equity

Tate & Lyle has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Tate & Lyle used its assets more efficiently than the GB Food industry average last year based on Return on Assets.


Return on Capital Employed

Tate & Lyle has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Tate & Lyle's financial position?


Financial Position Analysis

Tate & Lyle is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Tate & Lyle's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Tate & Lyle's level of debt (39.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (71.1% vs 39.4% today).

Debt is well covered by operating cash flow (56.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.46%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Tate & Lyle's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.07%).

Tate & Lyle's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.66%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of Tate & Lyle's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Nick Hampton (52yo)

1.3yrs

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

Nick's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Nick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.3yrs

Average Tenure

47yo

Average Age

The average tenure for the Tate & Lyle management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

57yo

Average Age

The average tenure for the Tate & Lyle board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Rowan Adams

    Executive Vice President of Corporate Affairs

    • Tenure: 4.8yrs
  • Lindsay Beardsell

    Executive VP & General Counsel

    • Tenure: 0.9yrs
  • Jim Stutelberg

    President of Primary Products

    • Tenure: 1.3yrs
  • Mathew Wootton

    Vice President of Corporate & Business Development

    • Tenure: 0.0yrs
  • Nick Hampton (52yo)

    Chief Executive & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£3.05m
  • Joan Braca (47yo)

    President of Food & Beverage Solutions

    • Tenure: 4.8yrs
  • Chris Marsh

    Group Vice President of Investor & Media Relations

    • Tenure: 0.0yrs
  • Imran Nawaz (45yo)

    CFO & Director

    • Tenure: 1.0yrs
    • Compensation: UK£1.15m
  • Melissa Law

    President of Global Operations

    • Tenure: 0.0yrs
  • Laura Hagan

    Chief Human Resource Officer

    • Tenure: 0.9yrs

Board Members

  • Gerry Murphy (64yo)

    Chairman

    • Tenure: 2.3yrs
    • Compensation: UK£350.00k
  • Anne Minto (66yo)

    Independent Non Executive Director

    • Tenure: 6.7yrs
    • Compensation: UK£82.00k
  • Lars Frederiksen (61yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£68.00k
  • Paul Forman (54yo)

    Senior Independent Director

    • Tenure: 0.1yrs
    • Compensation: UK£68.00k
  • Warren Tucker (57yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£25.00k
  • Kim Nelson (56yo)

    Independent Non-Executive Director

    • Tenure: 0.1yrs
  • Ajai Puri (66yo)

    Independent Non-Executive Director & Chairman of Research Advisory Group

    • Tenure: 7.3yrs
    • Compensation: UK£93.00k
  • Nick Hampton (52yo)

    Chief Executive & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£3.05m
  • Sybella Stanley (57yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£68.00k
  • Imran Nawaz (45yo)

    CFO & Director

    • Tenure: 1.0yrs
    • Compensation: UK£1.15m

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£3.259b
  • 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

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
TLYDB (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

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 inter ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 20:37
End of Day Share Price2019/08/22 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.