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

-1.4%

TATE

-0.7%

GB Food

2.0%

GB Market


1 Year Return

9.1%

TATE

-4.7%

GB Food

3.3%

GB Market

Return vs Industry: TATE exceeded the UK Food industry which returned -4.7% over the past year.

Return vs Market: TATE exceeded the UK Market which returned 3.3% over the past year.


Share holder returns

TATEIndustryMarket
7 Day-1.4%-0.7%2.0%
30 Day-7.2%-5.2%-1.0%
90 Day-8.7%-4.2%-1.7%
1 Year13.6%9.1%-2.2%-4.7%8.3%3.3%
3 Year-1.8%-13.4%-2.9%-10.0%19.0%4.5%
5 Year48.7%19.3%4.5%-5.9%38.4%8.4%

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?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: TATE (£6.91) is trading below our estimate of fair value (£12.42)

Significantly Undervalued: TATE is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: TATE is poor value based on its PE Ratio (17.7x) compared to the Food industry average (17.2x).

PE vs Market: TATE is poor value based on its PE Ratio (17.7x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: TATE is poor value based on its PEG Ratio (1.7x)


Price Based on Value of Assets

PB vs Industry: TATE is overvalued based on its PB Ratio (2.1x) compared to the GB Food industry average (1.1x).


Next Steps

Future Growth

How is Tate & Lyle expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TATE's forecast earnings growth (10.1% per year) is above the savings rate (1.2%).

Earnings vs Market: TATE's earnings (10.1% per year) are forecast to grow slower than the UK market (12.3% per year).

High Growth Earnings: TATE's earnings are forecast to grow, but not significantly.

Revenue vs Market: TATE's revenue (1.9% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: TATE's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: TATE's Return on Equity is forecast to be low in 3 years time (13.8%).


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

Earnings Trend: TATE's earnings have grown by 15.8% 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 (-31.2%) over the past year, making it difficult to compare to the Food industry average (4.5%).


Return on Equity

High ROE: TATE's Return on Equity (12.2%) is considered low.


Return on Assets

ROA vs Industry: TATE has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: TATE has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Tate & Lyle's financial position?


Financial Position Analysis

Short Term Liabilities: TATE's short term assets (£1.1B) exceeds its short term liabilities (£681.0M)

Long Term Liabilities: TATE's short term assets (1.1B) exceeds its long term liabilities (623.0M)


Debt to Equity History and Analysis

Debt Level: TATE's debt to equity ratio (39.4%) is considered satisfactory

Reducing Debt: TATE's debt to equity ratio has reduced from 71.1% to 39.4% over the past 5 years.

Debt Coverage: TATE's debt is well covered by operating cash flow (56.3%).

Interest Coverage: TATE's interest payments on its debt are well covered by EBIT (11.3x 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 1.870300x debt).


Next Steps

Dividend

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

4.50%

Expected Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%2.0%markettop25%5.4%industryaverage3.5%forecastin3Years4.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: TATE's dividend (4.25%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: TATE's dividend (4.25%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

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: At its current payout ratio (75.1%), TATE's 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 (56.3% payout ratio).


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)

1.5yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

1.3yrs

Average Tenure

Experienced Management: TATE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

57yo

Average Age

Experienced Board: TATE's board of directors are considered experienced (3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rowan Adams

    Executive Vice President of Corporate Affairs

    • Tenure: 4.9yrs
  • Lindsay Beardsell

    Executive VP & General Counsel

    • Tenure: 1.1yrs
  • Jim Stutelberg

    President of Primary Products

    • Tenure: 1.4yrs
  • Mathew Wootton

    Vice President of Corporate & Business Development

    • Tenure: 0yrs
  • Andrew Taylor

    President of Innovation & Commercial Development

    • Tenure: 0yrs
  • Nick Hampton (52yo)

    Chief Executive & Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£3.05m
  • Chris Marsh

    Group Vice President of Investor & Media Relations

    • Tenure: 0yrs
  • Imran Nawaz (45yo)

    CFO & Director

    • Tenure: 1.2yrs
    • Compensation: UK£1.15m
  • Melissa Law

    President of Global Operations

    • Tenure: 0yrs
  • Laura Hagan

    Chief Human Resource Officer

    • Tenure: 1.1yrs

Board Members

  • Gerry Murphy (64yo)

    Independent Chairman

    • Tenure: 2.5yrs
    • Compensation: UK£350.00k
  • Anne Minto (66yo)

    Independent Non Executive Director

    • Tenure: 6.8yrs
    • Compensation: UK£82.00k
  • Lars Frederiksen (61yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£68.00k
  • Paul Forman (54yo)

    Senior Independent Director

    • Tenure: 0.3yrs
    • Compensation: UK£68.00k
  • Warren Tucker (57yo)

    Independent Non-Executive Director

    • Tenure: 0.9yrs
    • Compensation: UK£25.00k
  • Kim Nelson (56yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Ajai Puri (66yo)

    Independent Non-Executive Director & Chairman of Research Advisory Group

    • Tenure: 7.5yrs
    • Compensation: UK£93.00k
  • Nick Hampton (52yo)

    Chief Executive & Executive Director

    • Tenure: 1.5yrs
    • Compensation: UK£3.05m
  • Sybella Stanley (57yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£68.00k
  • Imran Nawaz (45yo)

    CFO & Director

    • Tenure: 1.2yrs
    • 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£3.220b
  • 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

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 Analysis2019/10/13 20:42
End of Day Share Price2019/10/11 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.

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