Loading...

Treatt

LSE:TET
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TET
LSE
£245M
Market Cap
  1. Home
  2. GB
  3. Materials
Company description

Treatt plc manufactures and supplies ingredient solutions to the flavor, fragrance, and consumer goods markets in the United Kingdom, Germany, Ireland, the United States, China, and internationally. The last earnings update was 132 days ago. More info.


Add to Portfolio Compare Print
TET Share Price and Events
7 Day Returns
3%
LSE:TET
2.1%
GB Chemicals
1%
GB Market
1 Year Returns
0.7%
LSE:TET
-3%
GB Chemicals
1.6%
GB Market
TET Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Treatt (TET) 3% 3% -0.5% 0.7% 134.8% 193.7%
GB Chemicals 2.1% 7% 7.3% -3% 19% 17.2%
GB Market 1% 2.3% 8.6% 1.6% 14% 5.9%
1 Year Return vs Industry and Market
  • TET outperformed the Chemicals industry which returned -3% over the past year.
Price Volatility
TET
Industry
5yr Volatility vs Market

TET Value

 Is Treatt 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 Treatt 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 Treatt.

LSE:TET Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.9%
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:TET
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.931 (1 + (1- 19%) (9.09%))
1
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1 * 6.65%)
7.88%

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

The calculations below outline how an intrinsic value for Treatt 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:TET DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 7.88%)
2019 8.80 Analyst x1 8.16
2020 10.50 Analyst x1 9.02
2021 11.70 Analyst x1 9.32
2022 12.63 Est @ 7.94% 9.33
2023 13.38 Est @ 5.93% 9.16
2024 13.98 Est @ 4.52% 8.87
2025 14.48 Est @ 3.53% 8.51
2026 14.89 Est @ 2.84% 8.12
2027 15.24 Est @ 2.36% 7.70
2028 15.54 Est @ 2.02% 7.28
Present value of next 10 years cash flows £85.47
LSE:TET DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £15.54 × (1 + 1.23%) ÷ (7.88% – 1.23%)
£236.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £236.62 ÷ (1 + 7.88%)10
£110.86
LSE:TET Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £85.47 + £110.86
£196.32
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £196.32 / 58.55
£3.35
LSE:TET Discount to Share Price
Calculation Result
Value per share (GBP) From above. £3.35
Current discount Discount to share price of £4.18
= -1 x (£4.18 - £3.35) / £3.35
-24.7%

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

  • The current share price of Treatt is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Treatt's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Treatt's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:TET PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in GBP £0.16
LSE:TET Share Price ** LSE (2019-04-18) in GBP £4.18
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PE Ratio Median Figure of 12 Publicly-Listed Chemicals Companies 26.53x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 795 Publicly-Listed Companies 16.28x

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

** Primary Listing of Treatt.

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

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

= 4.18 ÷ 0.16

25.64x

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

  • Treatt is good value based on earnings compared to the GB Chemicals industry average.
  • Treatt is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Treatt's expected growth come at a high price?
Raw Data
LSE:TET PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
3.9%per year
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PEG Ratio Median Figure of 11 Publicly-Listed Chemicals Companies 1.71x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 563 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.64x ÷ 3.9%

6.57x

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

  • Treatt is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Treatt's assets?
Raw Data
LSE:TET PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in GBP £1.39
LSE:TET Share Price * LSE (2019-04-18) in GBP £4.18
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PB Ratio Median Figure of 25 Publicly-Listed Chemicals Companies 2.22x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,365 Publicly-Listed Companies 1.52x
LSE:TET PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 4.18 ÷ 1.39

3.02x

* Primary Listing of Treatt.

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

  • Treatt is overvalued based on assets compared to the GB Chemicals industry average.
X
Value checks
We assess Treatt'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 Chemicals 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 Chemicals industry average (and greater than 0)? (1 check)
  5. Treatt 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.

TET Future Performance

 How is Treatt expected to perform in the next 1 to 3 years based on estimates from 2 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
3.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Treatt expected to grow at an attractive rate?
  • Treatt's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Treatt's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Treatt'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:TET Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:TET Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 3.9%
LSE:TET Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 4.6%
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 7.8%
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.1%
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:TET Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:TET Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 129 14 10 2
2020-09-30 122 12 10 2
2019-09-30 116 10 10 2
LSE:TET Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-09-30 112 1 9
2018-03-31 116 4 11
2017-12-31 113 3 10
2017-09-30 101 2 9
2017-06-30 98 5 8
2017-03-31 94 8 7
2016-12-31 91 8 7
2016-09-30 88 9 6
2016-06-30 87 7 6
2016-03-31 85 5 6
2015-12-31 86 6 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Treatt's earnings are expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).
  • Treatt's revenue is expected to grow by 4.6% 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:TET Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Treatt Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:TET Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 0.17 0.17 0.17 1.00
2020-09-30 0.17 0.17 0.17 1.00
2019-09-30 0.17 0.17 0.17 1.00
LSE:TET Past Financials Data
Date (Data in GBP Millions) EPS *
2018-09-30 0.16
2018-03-31 0.20
2017-12-31 0.19
2017-09-30 0.16
2017-06-30 0.15
2017-03-31 0.14
2016-12-31 0.13
2016-09-30 0.12
2016-06-30 0.12
2016-03-31 0.12
2015-12-31 0.12

*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.
  • Treatt is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Treatt'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.
Treatt 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.

TET Past Performance

  How has Treatt 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 Treatt's growth in the last year to its industry (Chemicals).
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.
  • Treatt has delivered over 20% year on year earnings growth in the past 5 years.
  • Treatt's 1-year earnings growth is less than its 5-year average (8% vs 23.1%)
  • Treatt's earnings growth has exceeded the GB Chemicals industry average in the past year (8% vs 1.7%).
Earnings and Revenue History
Treatt'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 Treatt Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:TET Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 112.16 9.25 13.86
2018-03-31 116.07 10.71 13.28
2017-12-31 112.85 10.13 13.17
2017-09-30 101.25 8.57 12.77
2017-06-30 97.76 7.96 12.01
2017-03-31 94.28 7.35 11.26
2016-12-31 91.16 6.75 11.04
2016-09-30 88.04 6.15 10.83
2016-06-30 86.73 6.15 10.55
2016-03-31 85.42 6.15 10.28
2015-12-31 85.68 6.07 10.25
2015-09-30 85.93 5.99 10.21
2015-06-30 84.71 5.13 10.51
2015-03-31 83.49 4.27 10.81
2014-12-31 81.34 4.11 10.52
2014-09-30 79.19 3.95 10.24
2014-06-30 78.41 3.87 10.33
2014-03-31 77.63 3.79 10.42
2013-12-31 75.86 3.63 10.41
2013-09-30 74.10 3.48 10.41
2013-06-30 72.83 3.48 10.51
2013-03-31 71.56 3.48 10.62
2012-12-31 72.78 3.28 10.76
2012-09-30 74.01 3.07 10.90
2012-06-30 74.38 2.91 10.85

*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.
  • Treatt has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Treatt used its assets more efficiently than the GB Chemicals industry average last year based on Return on Assets.
  • Treatt's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Treatt'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 Chemicals 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.
Treatt 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.

TET Health

 How is Treatt'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 Treatt's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Treatt is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Treatt's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Treatt'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 4.6x 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 Treatt Company Filings, last reported 6 months ago.

LSE:TET Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 81.63 22.25 32.30
2018-03-31 69.39 1.99 8.48
2017-12-31 69.39 1.99 8.48
2017-09-30 46.48 15.38 4.75
2017-06-30 46.48 15.38 4.75
2017-03-31 41.27 12.17 3.70
2016-12-31 41.27 12.17 3.70
2016-09-30 37.19 9.67 6.59
2016-06-30 37.19 9.67 6.59
2016-03-31 34.06 12.16 2.32
2015-12-31 34.06 12.16 2.32
2015-09-30 33.19 9.01 1.48
2015-06-30 33.19 9.01 1.48
2015-03-31 28.88 14.54 3.25
2014-12-31 28.88 14.54 3.25
2014-09-30 28.76 11.40 0.63
2014-06-30 28.76 11.40 0.63
2014-03-31 28.18 13.07 0.53
2013-12-31 28.18 13.07 0.53
2013-09-30 27.44 10.66 1.12
2013-06-30 27.44 10.66 1.12
2013-03-31 26.15 18.40 0.45
2012-12-31 26.15 18.40 0.45
2012-09-30 26.00 15.58 0.93
2012-06-30 26.00 15.58 0.93
  • Treatt's level of debt (27.3%) 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 (38.9% vs 27.3% today).
  • Debt is not well covered by operating cash flow (2.7%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 74.5x coverage).
X
Financial health checks
We assess Treatt'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. Treatt 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.

TET Dividends

 What is Treatt'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
1.22%
Current annual income from Treatt dividends. Estimated to be 1.32% next year.
If you bought £2,000 of Treatt shares you are expected to receive £24 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?
  • Treatt's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.01%).
  • Treatt's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.12%).
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:TET 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 2 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 2.7%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
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 5.1%

Industry and Market average data is calculated daily.

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

LSE:TET Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 0.06 1.00
2020-09-30 0.06 2.00
2019-09-30 0.05 2.00
LSE:TET Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-12-07 0.051 1.215
2018-11-27 0.051 1.180
2017-12-14 0.048 1.072
2017-11-28 0.048 1.011
2016-12-09 0.044 1.143
2016-11-29 0.044 1.657
2015-12-14 0.040 2.192
2015-12-08 0.040 2.453
2014-12-12 0.038 2.494
2014-12-09 0.038 2.729
2014-02-18 0.037 2.438
2013-05-13 0.032 2.528
2012-12-10 0.031 3.794
2011-12-16 0.029 4.138
2011-12-05 0.029 4.472
2010-12-06 0.026 3.429
2010-12-03 0.026 3.513
2009-12-07 0.024 3.987
2009-11-30 0.024 4.394
2009-04-20 0.022 4.634

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

  • 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
What portion of Treatt's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).
X
Income/ dividend checks
We assess Treatt'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 Treatt afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Treatt has a total score of 4/6, see the detailed checks below.


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

TET Management

 What is the CEO of Treatt'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
Daemmon Reeve
COMPENSATION £1,757,000
TENURE AS CEO 6.7 years
CEO Bio

Mr. Daemmon Reeve has been the Group Chief Executive Officer of Treatt plc since August 15, 2012. Mr. Reeve has been an Executive Director of Treatt plc since May 18, 2012. Mr. Reeve Chief Executive Officer of Treatt USA since July 2010. He s extensive industry experience and knowledge, having been employed at R.C. Treatt & Co. Limited, the Group's principal operating subsidiary, for 19 years. He gained widespread experience in Technical, Operational and Purchasing disciplines.

CEO Compensation
  • Daemmon's compensation has increased by more than 20% in the past year.
  • Daemmon's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Daemmon Reeve

TITLE
CEO & Executive Director
COMPENSATION
£2M
TENURE
6.7 yrs

Richard Hope

TITLE
CFO & Executive Director
COMPENSATION
£1M
AGE
51
TENURE
15.9 yrs

Anita Steer

TITLE
Group Legal Counsel & Secretary

Douglas Rash

TITLE
Vice President of Global Sales
Board of Directors Tenure

Average tenure and age of the Treatt board of directors in years:

6.5
Average Tenure
51
Average Age
  • The tenure for the Treatt board of directors is about average.
Board of Directors

Tim Jones

TITLE
Non-Executive Chairman
COMPENSATION
£80K
TENURE
7.2 yrs

Daemmon Reeve

TITLE
CEO & Executive Director
COMPENSATION
£2M
TENURE
6.9 yrs

Richard Hope

TITLE
CFO & Executive Director
COMPENSATION
£1M
AGE
51
TENURE
15.9 yrs

David Johnston

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£48K

Jeff Iliffe

TITLE
Non-Executive Director
COMPENSATION
£48K
AGE
56
TENURE
6.2 yrs

Richard Illek

TITLE
Non-Executive Director
COMPENSATION
£40K
TENURE
2.8 yrs

Yetunde Hoffman

TITLE
Independent Non-Executive Director
TENURE
0.1 yrs

Lynne Weedall

TITLE
Independent Non-Executive Director
AGE
51
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Treatt insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
25. Mar 19 Buy Timothy Jones Individual 25. Mar 19 25. Mar 19 4,775 £4.17 £19,888
06. Mar 19 Buy Timothy Jones Individual 05. Mar 19 05. Mar 19 11,982 £4.19 £50,205
17. Jan 19 Buy Daemmon Reeve Individual 17. Jan 19 17. Jan 19 4,185 £4.24 £17,744
11. May 18 Buy Richard Illek Individual 10. May 18 10. May 18 9,000 £5.00 £44,748
X
Management checks
We assess Treatt'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. Treatt 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.

TET News

Simply Wall St News

Will Treatt plc's (LON:TET) Earnings Grow In The Next Couple Of Years?

Treatt plc's (LON:TET) released its most recent earnings update in September 2018, whicha … indicated

Simply Wall St -

Want To Invest In Treatt plc (LON:TET)? Here's How It Performed Lately

After reading Treatt plc's (LON:TET) most recent earnings announcement (30 September 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … TET's trailing twelve-month earnings (from 30 September 2018) of UK£9.3m has. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 23%, indicating the rate at which TET is growing has slowed down

Simply Wall St -

Is Treatt plc's (LON:TET) Capital Allocation Ability Worth Your Time?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Have Insiders Been Buying Treatt plc (LON:TET) Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in Treatt plc (LON:TET). … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

What Are Analysts Saying About Treatt plc's (LON:TET) Future?

Looking at Treatt plc's (LON:TET) earnings update in September 2018,. … with earnings expected to grow by 9.2% in the upcoming year … the higher past 5-year average growth rate of 23%

Simply Wall St -

An Examination Of Treatt plc (LON:TET)

Help shape the future of investing tools and receive a $20 prize! … Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Treatt plc (LON:TET) due to its excellent fundamentals in more than one area.

Simply Wall St -

How Financially Strong Is Treatt plc (LON:TET)?

While small-cap stocks, such as Treatt plc (LON:TET) with its market cap of UK£251m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Does Treatt plc's (LON:TET) P/E Ratio Signal A Buying Opportunity?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … That is equivalent to an earnings yield of about 4.0%. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Treatt plc's (LON:TET) CEO Pay Fair?

In 2012 Daemmon Reeve was appointed CEO of Treatt plc (LON:TET). … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Daemmon Reeve's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Does Treatt plc's (LON:TET) Past Performance Indicate A Stronger Future?

Today I will assess TET's recent performance announced on 30 September 2018 and weigh these figures against its long-term trend and industry movements. … TET's trailing twelve-month earnings (from 30 September 2018) of UK£9.3m has? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 23%, indicating the rate at which TET is growing has slowed down

Simply Wall St -

TET Company Info

Description

Treatt plc manufactures and supplies ingredient solutions to the flavor, fragrance, and consumer goods markets in the United Kingdom, Germany, Ireland, the United States, China, and internationally. It offers flavor ingredients, such as citrus, tea, health and wellness, and fruits and vegetables; aroma, natural, and high impact chemicals; and herb, spice, and floral flavors. The company also provides ingredient applications for beverage and household products; and fragrance ingredients, such as blends and ingredients. It also exports its products. Treatt plc was founded in 1886 and is headquartered in Bury St Edmunds, the United Kingdom.

Details
Name: Treatt plc
TET
Exchange: LSE
Founded: 1886
£244,754,520
58,553,713
Website: http://www.treatt.com
Address: Treatt plc
Northern Way,
Bury St Edmunds,
Suffolk, IP32 6NL,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE TET Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
DB 5TT Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
Number of employees
Current staff
Staff numbers
360
Treatt employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 20:42
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/11
Last earnings filing: 2018/12/07
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/09/30


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.