LSE:TATE

Stock Analysis Report

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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

Trading at 44.6% below our estimate of its fair value

Earnings grew by 35.2% over the past year

Pays a reliable dividend of 4.28%

Risk Analysis

No risks detected for TATE from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


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

3.9%

TATE

5.2%

GB Food

2.7%

GB Market


1 Year Return

-3.1%

TATE

-7.4%

GB Food

-7.6%

GB Market

Return vs Industry: TATE exceeded the UK Food industry which returned -9.1% over the past year.

Return vs Market: TATE exceeded the UK Market which returned -10.3% over the past year.


Shareholder returns

TATEIndustryMarket
7 Day3.9%5.2%2.7%
30 Day5.2%3.1%2.9%
90 Day7.8%15.3%11.5%
1 Year1.1%-3.1%-5.6%-7.4%-3.7%-7.6%
3 Year14.2%0.6%-22.3%-26.9%-2.7%-14.6%
5 Year61.3%30.6%-15.6%-23.8%21.0%-6.0%

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 compared to its fair value and its price relative to the market?

44.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TATE (£6.91) is trading below our estimate of fair value (£12.47)

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 (13.1x) compared to the GB Food industry average (15.5x).

PE vs Market: TATE is good value based on its PE Ratio (13.1x) compared to the UK market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: TATE is poor value based on its PEG Ratio (10.9x)


Price to Book Ratio

PB vs Industry: TATE is overvalued based on its PB Ratio (2.3x) compared to the GB Food industry average (0.7x).


Next Steps

Future Growth

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

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: TATE's earnings (1.2% per year) are forecast to grow slower than the UK market (23% per year).

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

Revenue vs Market: TATE's revenue (0.9% per year) is forecast to grow slower than the UK market (4.8% per year).

High Growth Revenue: TATE's revenue (0.9% 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 (15.1%).


Next Steps

Past Performance

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

23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TATE has high quality earnings.

Growing Profit Margin: TATE's current net profit margins (8.5%) are higher than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: TATE's earnings have grown significantly by 23.6% per year over the past 5 years.

Accelerating Growth: TATE's earnings growth over the past year (35.2%) exceeds its 5-year average (23.6% per year).

Earnings vs Industry: TATE earnings growth over the past year (35.2%) exceeded the Food industry 5.8%.


Return on Equity

High ROE: TATE's Return on Equity (17.5%) is considered low.


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 (£508.0M).

Long Term Liabilities: TATE's short term assets (£1.1B) exceed its long term liabilities (£944.0M).


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 80.2% to 39.4% over the past 5 years.

Debt Coverage: TATE's debt is well covered by operating cash flow (69.9%).

Interest Coverage: TATE's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TATE's dividend (4.28%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: TATE's dividend (4.28%) is low compared to the top 25% of dividend payers in the UK market (5.31%).


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 (56.1%), 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 (56% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Nick Hampton (53 yo)

2.33yrs

Tenure

UK£2,499,000

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. Hampt ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD3.26M) is above average for companies of similar size in the UK market ($USD2.13M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nick Hampton
Chief Executive & Executive Director2.33yrsUK£2.50m0.090%
£ 2.9m
Imran Nawaz
CFO & Director2yrsUK£1.70m0.0092%
£ 293.9k
Melissa Law
President of Global Operationsno datano datano data
Christopher Marsh
Group Vice President of Investor & Media Relationsno datano datano data
Lindsay Beardsell
Executive VP & General Counsel1.92yrsno datano data
Laura Hagan
Chief Human Resource Officer1.92yrsno datano data
Rowan Adams
Executive Vice President of Corporate Affairs5.75yrsno data0.040%
£ 1.3m
James Stutelberg
President of Primary Products2.25yrsno datano data
Andrew Taylor
President of Innovation & Commercial Developmentno datano datano data
Harry Boot
President of Food & Beverage Solutions of Asia Pacific0.92yrno datano data
Susanna Palatucci
Global Head of Health & Wellnessno datano datano data
Tim Meinhold
Senior VP of Global Operations & Chief Procurement Officerno datano datano data

2.0yrs

Average Tenure

49.5yo

Average Age

Experienced Management: TATE's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nick Hampton
Chief Executive & Executive Director2.33yrsUK£2.50m0.090%
£ 2.9m
Imran Nawaz
CFO & Director2yrsUK£1.70m0.0092%
£ 293.9k
Gerard Murphy
Independent Chairman3.33yrsUK£350.00k0.0043%
£ 137.7k
Anne Minto
Independent Non Executive Director7.67yrsUK£82.00k0.0019%
£ 59.3k
Lars Frederiksen
Independent Non-Executive Director4.33yrsUK£68.00k0.0032%
£ 103.3k
Paul Forman
Senior Independent Director1.08yrsUK£75.00k0.0022%
£ 68.8k
Warren Tucker
Independent Non-Executive Director1.75yrsUK£80.00k0.00093%
£ 29.6k
Kimberly Nelson
Independent Non-Executive Director1.08yrsUK£51.00kno data
Ajai Puri
Independent Non-Executive Director & Chairman of Research Advisory Group8.33yrsUK£93.00k0.0022%
£ 68.8k
Sybella Stanley
Independent Non-Executive Director4.33yrsUK£68.00k0.0011%
£ 34.4k

3.8yrs

Average Tenure

58yo

Average Age

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.


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£3.187b
  • Shares outstanding: 463.29m
  • 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 Analysis2020/08/13 20:44
End of Day Share Price2020/08/13 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.