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Tate & Lyle

LSE:TATE
Snowflake Description

Excellent balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TATE
LSE
£3B
Market Cap
  1. Home
  2. GB
  3. Food, Beverage & Tobacco
Company description

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. The last earnings update was 16 days ago. More info.


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TATE Share Price and Events
7 Day Returns
-1.1%
LSE:TATE
-1%
GB Food
0.3%
GB Market
1 Year Returns
19.5%
LSE:TATE
-10.9%
GB Food
-3.8%
GB Market
TATE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tate & Lyle (TATE) -1.1% -1.8% 5.4% 19.5% 18.8% 11%
GB Food -1% -2.3% 4% -10.9% -6% -13.5%
GB Market 0.3% 1.8% 2.4% -3.8% 18.5% 4.5%
1 Year Return vs Industry and Market
  • TATE outperformed the Food industry which returned -10.9% over the past year.
  • TATE outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3.8% over the past year.
Price Volatility
TATE
Industry
5yr Volatility vs Market

TATE Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tate & Lyle to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tate & Lyle.

LSE:TATE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:TATE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Food Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.546 (1 + (1- 19%) (17.2%))
0.747
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for LSE:TATE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tate & Lyle is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:TATE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.55%)
2019 184.25 Analyst x5 172.93
2020 204.65 Analyst x7 180.27
2021 218.44 Analyst x7 180.60
2022 239.05 Analyst x6 185.49
2023 262.20 Analyst x1 190.95
2024 278.53 Est @ 6.23% 190.38
2025 291.69 Est @ 4.73% 187.13
2026 302.41 Est @ 3.68% 182.08
2027 311.31 Est @ 2.94% 175.92
2028 318.87 Est @ 2.43% 169.12
Present value of next 10 years cash flows £1,814.87
LSE:TATE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £318.87 × (1 + 1.23%) ÷ (6.55% – 1.23%)
£6,067.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £6,067.29 ÷ (1 + 6.55%)10
£3,217.97
LSE:TATE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £1,814.87 + £3,217.97
£5,032.84
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £5,032.84 / 465.03
£10.82
LSE:TATE Discount to Share Price
Calculation Result
Value per share (GBP) From above. £10.82
Current discount Discount to share price of £7.46
= -1 x (£7.46 - £10.82) / £10.82
31.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Tate & Lyle is available for.
Intrinsic value
31%
Share price is £7.46 vs Future cash flow value of £10.82
Current Discount Checks
For Tate & Lyle to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tate & Lyle's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tate & Lyle's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:TATE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £0.39
LSE:TATE Share Price ** LSE (2019-06-21) in GBP £7.46
United Kingdom of Great Britain and Northern Ireland Food Industry PE Ratio Median Figure of 18 Publicly-Listed Food Companies 18.86x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 787 Publicly-Listed Companies 16.39x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tate & Lyle.

LSE:TATE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:TATE Share Price ÷ EPS (both in GBP)

= 7.46 ÷ 0.39

19.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Tate & Lyle's expected growth come at a high price?
Raw Data
LSE:TATE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
9.9%per year
United Kingdom of Great Britain and Northern Ireland Food Industry PEG Ratio Median Figure of 16 Publicly-Listed Food Companies 1.87x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 573 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:TATE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.07x ÷ 9.9%

1.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tate & Lyle is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Tate & Lyle's assets?
Raw Data
LSE:TATE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £3.22
LSE:TATE Share Price * LSE (2019-06-21) in GBP £7.46
United Kingdom of Great Britain and Northern Ireland Food Industry PB Ratio Median Figure of 30 Publicly-Listed Food Companies 1.11x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.49x
LSE:TATE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:TATE Share Price ÷ Book Value per Share (both in GBP)

= 7.46 ÷ 3.22

2.32x

* Primary Listing of Tate & Lyle.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tate & Lyle is overvalued based on assets compared to the GB Food industry average.
X
Value checks
We assess Tate & Lyle's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Tate & Lyle has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TATE Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tate & Lyle expected to grow at an attractive rate?
  • Tate & Lyle's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Tate & Lyle's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Tate & Lyle's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:TATE Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:TATE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 9.9%
LSE:TATE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 1.7%
United Kingdom of Great Britain and Northern Ireland Food Industry Earnings Growth Rate Market Cap Weighted Average 12.9%
United Kingdom of Great Britain and Northern Ireland Food Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:TATE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:TATE Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 2,995 2
2023-03-31 2,950 410 287 2
2022-03-31 2,920 392 253 8
2021-03-31 2,877 354 242 9
2020-03-31 2,839 364 224 9
LSE:TATE Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 2,755 330 181
2018-09-30 2,695 288 220
2018-06-30 2,703 287 242
2018-03-31 2,710 286 263
2017-09-30 2,830 308 250
2017-06-30 2,792 303 253
2017-03-31 2,753 298 255
2016-12-31 2,630 256 219
2016-09-30 2,506 214 183
2016-06-30 2,431 201 152

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tate & Lyle's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
  • Tate & Lyle's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:TATE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Tate & Lyle Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:TATE Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31
2023-03-31 0.61 0.61 0.61 1.00
2022-03-31 0.53 0.57 0.49 3.00
2021-03-31 0.51 0.54 0.48 5.00
2020-03-31 0.49 0.51 0.47 5.00
LSE:TATE Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 0.39
2018-09-30 0.48
2018-06-30 0.52
2018-03-31 0.57
2017-09-30 0.54
2017-06-30 0.54
2017-03-31 0.55
2016-12-31 0.47
2016-09-30 0.39
2016-06-30 0.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Tate & Lyle is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Tate & Lyle's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tate & Lyle has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TATE Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tate & Lyle's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Tate & Lyle's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tate & Lyle Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:TATE Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,755.00 181.00 222.00 36.00
2018-09-30 2,695.00 220.00 226.00 35.00
2018-06-30 2,702.50 241.50 226.00 35.00
2018-03-31 2,710.00 263.00 226.00 35.00
2017-09-30 2,830.00 250.00 219.00 37.00
2017-06-30 2,791.50 252.50 219.00 37.00
2017-03-31 2,753.00 255.00 219.00 37.00
2016-12-31 2,629.50 219.00 190.00 33.00
2016-09-30 2,506.00 183.00 161.00 29.00
2016-06-30 2,430.50 152.00 161.00 29.00
2016-03-31 2,355.00 121.00 161.00 29.00
2015-12-31 2,333.00 70.00 140.00 30.50
2015-09-30 2,311.00 19.00 119.00 32.00
2015-06-30 2,326.00 11.50 121.00 32.00
2015-03-31 2,341.00 4.00 123.00 32.00
2014-09-30 2,438.00 167.00 135.00 33.00
2014-06-30 2,596.00 206.00 135.00 33.00
2014-03-31 2,754.00 245.00 135.00 33.00
2013-09-30 3,141.00 245.00 157.00 32.00
2013-06-30 3,198.50 249.50 156.00 32.00
2013-03-31 3,256.00 254.00 155.00 32.00
2012-12-31 3,217.50 257.00 350.00 30.50
2012-09-30 3,179.00 260.00 545.00 29.00
2012-06-30 3,133.50 281.50 542.50 29.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Tate & Lyle has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Tate & Lyle used its assets more efficiently than the GB Food industry average last year based on Return on Assets.
  • Tate & Lyle has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tate & Lyle's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tate & Lyle has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TATE Health

 How is Tate & Lyle's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tate & Lyle's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Tate & Lyle's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tate & Lyle Company Filings, last reported 2 months ago.

LSE:TATE Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,489.00 597.00 290.00
2018-09-30 1,412.00 601.00 284.00
2018-06-30 1,412.00 601.00 284.00
2018-03-31 1,367.00 570.00 190.00
2017-09-30 1,294.00 602.00 243.00
2017-06-30 1,294.00 602.00 243.00
2017-03-31 1,332.00 692.00 289.00
2016-12-31 1,332.00 692.00 289.00
2016-09-30 1,119.00 699.00 293.00
2016-06-30 1,119.00 699.00 293.00
2016-03-31 1,029.00 756.00 364.00
2015-12-31 1,029.00 756.00 364.00
2015-09-30 903.00 779.00 240.00
2015-06-30 903.00 779.00 240.00
2015-03-31 936.00 768.00 272.00
2014-09-30 1,045.00 796.00 325.00
2014-06-30 1,045.00 796.00 325.00
2014-03-31 1,050.00 765.00 412.00
2013-09-30 987.00 821.00 449.00
2013-06-30 987.00 821.00 449.00
2013-03-31 1,036.00 906.00 456.00
2012-12-31 1,036.00 906.00 456.00
2012-09-30 977.00 860.00 419.00
2012-06-30 977.00 860.00 419.00
  • Tate & Lyle's level of debt (40.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (72.9% vs 40.1% today).
  • Debt is well covered by operating cash flow (55.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.3x coverage).
X
Financial health checks
We assess Tate & Lyle's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tate & Lyle has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TATE Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.94%
Current annual income from Tate & Lyle dividends. Estimated to be 4.18% next year.
If you bought £2,000 of Tate & Lyle shares you are expected to receive £79 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Tate & Lyle's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.96%).
  • Tate & Lyle's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.4%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:TATE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Food Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:TATE Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-03-31
2023-03-31 0.32 1.00
2022-03-31 0.32 8.00
2021-03-31 0.31 9.00
2020-03-31 0.30 9.00
LSE:TATE Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-06-07 0.294 3.924
2019-05-23 0.294 3.971
2018-11-08 0.289 4.082
2018-06-21 0.287 4.408
2018-05-24 0.287 4.327
2017-11-02 0.282 4.577
2017-05-25 0.280 4.137
2016-11-03 0.280 3.867
2016-06-20 0.280 3.863
2016-05-26 0.280 4.463
2015-07-30 0.280 4.839
2014-11-06 0.280 4.747
2014-05-29 0.276 4.245
2014-05-28 0.276 4.013
2013-06-21 0.262 3.494
2013-05-30 0.262 3.210
2012-11-08 0.252 3.118
2012-07-09 0.249 3.696
2012-05-31 0.249 3.852
2011-05-27 0.237 3.623
2010-05-27 0.229 4.479
2010-03-31 0.229 5.141

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Tate & Lyle has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Tate & Lyle only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Tate & Lyle's earnings are paid to the shareholders as a dividend.
  • 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).
X
Income/ dividend checks
We assess Tate & Lyle's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tate & Lyle afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tate & Lyle has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TATE Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nick Hampton
COMPENSATION £3,045,000
AGE 51
TENURE AS CEO 1.2 years
CEO Bio

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. Hampton joined Tate & Lyle from PepsiCo where he served as President of West Europe Region and Senior Vice President Commercial Europe since 2013. He was the Chief Financial Officer of Tate & Lyle plc since September 2014 until April 1, 2018. Prior to that, during a twenty year career at PepsiCo, he held a number of financial, commercial and operational roles. He has a wealth of experience in the food and beverage industry. His skills include: Global Corporate and Finance. Mr. Hampton has been a Non-Executive Director at Great Portland Estates plc since October 17, 2016. He served as PepsiCo’s CFO of Europe. He holds a Master’s Degree in Chemistry from York St John University. Skills and expertise: His general management, financial and operational experience in senior management roles in a major multinational food and beverage business combined with his experience in leading transformational projects provides him with the skillset required to inspire and lead the Group. Previous roles: Held a number of senior roles over a 20-year career at PepsiCo, included Senior Vice President.

CEO Compensation
  • Nick's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Nick's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Tate & Lyle management team in years:

1.1
Average Tenure
46
Average Age
  • The average tenure for the Tate & Lyle management team is less than 2 years, this suggests a new team.
Management Team

Nick Hampton

TITLE
Chief Executive & Executive Director
COMPENSATION
£3M
AGE
51
TENURE
1.2 yrs

Imran Nawaz

TITLE
CFO & Director
COMPENSATION
£1M
AGE
44
TENURE
0.8 yrs

Melissa Law

TITLE
President of Global Operations

Chris Marsh

TITLE
Group Vice President of Investor & Media Relations

Lindsay Beardsell

TITLE
Executive VP & General Counsel
TENURE
0.8 yrs

Mathew Wootton

TITLE
Vice President of Corporate & Business Development

Laura Hagan

TITLE
Chief Human Resource Officer
TENURE
0.8 yrs

Rowan Adams

TITLE
Executive Vice President of Corporate Affairs
TENURE
4.6 yrs

Joan Braca

TITLE
President of Food & Beverage Solutions
AGE
46
TENURE
4.6 yrs

Jim Stutelberg

TITLE
President of Primary Products
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the Tate & Lyle board of directors in years:

3.2
Average Tenure
58
Average Age
  • The tenure for the Tate & Lyle board of directors is about average.
Board of Directors

Gerry Murphy

TITLE
Chairman
COMPENSATION
£350K
AGE
63
TENURE
2.2 yrs

Nick Hampton

TITLE
Chief Executive & Executive Director
COMPENSATION
£3M
AGE
51
TENURE
4.8 yrs

Imran Nawaz

TITLE
CFO & Director
COMPENSATION
£1M
AGE
44
TENURE
0.8 yrs

Douglas Hurt

TITLE
Senior Independent Director
COMPENSATION
£97K
AGE
62
TENURE
2.4 yrs

Ajai Puri

TITLE
Independent Non-Executive Director & Chairman of Research Advisory Group
COMPENSATION
£93K
AGE
65
TENURE
7.2 yrs

Anne Minto

TITLE
Independent Non Executive Director
COMPENSATION
£82K
AGE
65
TENURE
6.5 yrs

Paul Forman

TITLE
Independent Non-Executive Director
COMPENSATION
£68K
AGE
53
TENURE
4.4 yrs

Lars Frederiksen

TITLE
Independent Non-Executive Director
COMPENSATION
£68K
AGE
60
TENURE
3.2 yrs

Sybella Stanley

TITLE
Independent Non-Executive Director
COMPENSATION
£68K
AGE
56
TENURE
3.2 yrs

Warren Tucker

TITLE
Independent Non-Executive Director
COMPENSATION
£25K
AGE
56
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
28. Jun 18 Sell Joan Braca Individual 28. Jun 18 28. Jun 18 -15,829 £6.41 £-101,401
X
Management checks
We assess Tate & Lyle's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tate & Lyle has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TATE News

Simply Wall St News

Top Bear Market Investment: Tate & Lyle plc (LON:TATE)

LSE:TATE Historical Debt, June 23rd 2019 Tate &amp; Lyle currently has UK£597m debt on its books which requires regular servicing. … Characteristics I value in a long term investment are proven in Tate &amp; Lyle, and I can continue to sleep easy at night with the stock as part of my portfolio. … The intrinsic value infographic in our free research report helps visualize whether TATE is currently mispriced by the market.

Simply Wall St -

What Should You Know About Tate & Lyle plc's (LON:TATE) Earnings Trajectory?

The most recent earnings release Tate &amp; Lyle plc's (LON:TATE) announced in March 2019 showed that the company experienced a substantial headwind with earnings deteriorating by -31%. … Below, I've laid out key numbers on how market analysts perceive Tate &amp; Lyle's earnings growth trajectory over the next couple of years and whether the future looks brighter. … View our latest analysis for Tate &amp; Lyle Market analysts' prospects for the upcoming year seems positive, with earnings expanding by a robust 27%.

Simply Wall St -

Do You Know What Tate & Lyle plc's (LON:TATE) P/E Ratio Means?

Check out our latest analysis for Tate &amp; Lyle How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Tate &amp; Lyle: P/E of 19.38 = £7.6 ÷ £0.39 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … LSE:TATE Price Estimation Relative to Market, May 25th 2019 Its P/E ratio suggests that Tate &amp; Lyle shareholders think that in the future it will perform about the same as other companies in its industry classification.

Simply Wall St -

An Intrinsic Calculation For Tate & Lyle plc (LON:TATE) Suggests It's 27% Undervalued

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Tate &amp; Lyle plc (LON:TATE) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (£, Millions) £184.25 £194.21 £196.95 £250.20 £268.14 £282.58 £294.27 £303.88 £311.95 £318.89 Growth Rate Estimate Source Analyst x5 Analyst x5 Analyst x5 Analyst x1 Est @ 7.17% Est @ 5.39% Est @ 4.14% Est @ 3.27% Est @ 2.65% Est @ 2.23% Present Value (£, Millions) Discounted @ 6.55% £172.93 £171.07 £162.83 £194.14 £195.28 £193.15 £188.78 £182.97 £176.28 £169.13 Present Value of 10-year Cash Flow (PVCF)= £1.81b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = UK£319m × (1 + 1.2%) ÷ (6.5% – 1.2%) = UK£6.1b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = £UK£6.1b ÷ ( 1 + 6.5%)10 = £3.22b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is £5.02b.

Simply Wall St -

Does Tate & Lyle plc’s (LON:TATE) ROCE Reflect Well On The Business?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Tate & Lyle plc (LON:TATE) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in Tate & Lyle plc (LON:TATE). … That means that an insider was selling shares at slightly below the current price (UK£7.47). … As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation.

Simply Wall St -

What You Should Know About Tate & Lyle plc's (LON:TATE) Financial Strength

While small-cap stocks, such as Tate & Lyle plc (LON:TATE) with its market cap of UK£3.4b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

Why We Think Tate & Lyle plc (LON:TATE) Could Be Worth Looking At

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Tate & Lyle plc (LON:TATE) due to its excellent fundamentals in more than one area. … that has been able to sustain great financial health over the past

Simply Wall St -

Did Tate & Lyle's (LON:TATE) Share Price Deserve to Gain 35%?

For example, the Tate & Lyle plc (LON:TATE) share price is up 35% in the last year, clearly besting than the market return of around 3.1% (not including dividends). … This means it's unlikely the market is judging the company based on earnings growth. … Indeed, when EPS is declining but the share price is up, it often means the market is considering other factors.

Simply Wall St -

Why Tate & Lyle plc (LON:TATE) Is A Buy When Markets Go Down

Longstanding stocks such as Tate & Lyle plc has fared well over time in a volatile stock market, which is why it’s my top pick to invest in. … See our latest analysis for Tate & Lyle. … 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

Simply Wall St -

TATE Company Info

Description

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, 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.

Details
Name: Tate & Lyle plc
TATE
Exchange: LSE
Founded: 1903
£3,470,070,231
465,032,194
Website: http://www.tateandlyle.com
Address: Tate & Lyle plc
1 Kingsway,
London,
Greater London, WC2B 6AT,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE TATE Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK TATY.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB TLY Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE TATEL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK TATY.Y SPONSORED ADR Pink Sheets LLC US USD 16. Mar 1990
LSE BD15 6 .5% CUM PRF GBP1 London Stock Exchange GB GBP 27. Aug 1996
Number of employees
Current staff
Staff numbers
4,121
Tate & Lyle employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 20:36
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/06/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.