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Treatt

LSE:TET
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TET
LSE
£269M
Market Cap
  1. Home
  2. GB
  3. Materials
Company description

Treatt plc manufactures and supplies ingredient solutions for the flavor, fragrance, and consumer goods markets in the United Kingdom, Germany, Ireland, the United States, China, and internationally. The last earnings update was 193 days ago. More info.


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TET Share Price and Events
7 Day Returns
2.2%
LSE:TET
0.1%
GB Chemicals
-1.3%
GB Market
1 Year Returns
13.7%
LSE:TET
3.6%
GB Chemicals
1.4%
GB Market
TET Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Treatt (TET) 2.2% 8% -3.2% 13.7% 181.3% 285.9%
GB Chemicals 0.1% -0.5% -13.2% 3.6% 39.9% 75%
GB Market -1.3% -0.2% -5.1% 1.4% 36.2% 32%
1 Year Return vs Industry and Market
  • TET outperformed the Chemicals industry which returned 3.6% over the past year.
  • TET outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.4% 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 8.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.4%

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 1.4%
Equity Risk Premium S&P Global 8.6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.809 (1 + (1- 19%) (0.74%))
0.814
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.4% + (0.814 * 8.6%)
8.4%

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 use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:TET DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 8.40 10.20 11.10 12.07 13.13
Source Analyst x1 Analyst x1 Est @ 8.77% Est @ 8.77% Est @ 8.77%
Present Value
Discounted (@ 8.4%)
7.75 8.68 8.71 8.74 8.77
Present value of next 5 years cash flows $42.65
LSE:TET DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $13.13 × (1 + 1.4%) ÷ (8.4% – 1.4%)
$190.10
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $190.10 ÷ (1 + 8.4%)5
$127.01
LSE:TET Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $42.65 + $127.01
$169.67
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $169.67 / 58.39
$2.91
LSE:TET Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.91
Current discount Discount to share price of £4.60
= -1 x (£4.60 - £2.91) / £2.91
-58.3%

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 (2018-03-31) in USD $0.20
LSE:TET Share Price ** LSE (2018-11-16) in GBP £4.6
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PE Ratio Median Figure of 12 Publicly-Listed Chemicals Companies 21.54x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 812 Publicly-Listed Companies 16.05x

* 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 USD)

= 4.6 ÷ 0.20

23.17x

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

  • Treatt is overvalued 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 23.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
-4.1%per year
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PEG Ratio Median Figure of 11 Publicly-Listed Chemicals Companies 1.56x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 582 Publicly-Listed Companies 1.34x

*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

= 23.17x ÷ -4.1%

-5.62x

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

  • Treatt earnings are not expected to grow next year, we can't assess if its growth is good value.
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 (2018-03-31) in USD $1.25
LSE:TET Share Price * LSE (2018-11-16) in GBP £4.6
United Kingdom of Great Britain and Northern Ireland Chemicals Industry PB Ratio Median Figure of 25 Publicly-Listed Chemicals Companies 2.42x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,342 Publicly-Listed Companies 1.55x
LSE:TET PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 4.6 ÷ 1.25

3.68x

* 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 0/6, 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
-4.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Treatt expected to grow at an attractive rate?
  • Treatt's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Treatt's earnings are expected to decrease over the next 1-3 years, this is below 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 -4.1%
LSE:TET Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 3%
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 8%
United Kingdom of Great Britain and Northern Ireland Chemicals Industry Revenue Growth Rate Market Cap Weighted Average -4.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.5%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4%

*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 (7 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:TET Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-09-30 121 12 11 2
2019-09-30 116 10 10 2
2018-09-30 110 -1 12 2
LSE:TET Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 116 4 11
2017-12-31 113 3 10
2017-09-30 110 2 10
2017-06-30 100 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
2015-09-30 86 7 6
2015-06-30 85 6 5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Treatt's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Treatt's revenue is expected to grow by 3% 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 (7 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 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:TET Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-09-30 0.18 0.18 0.18 2.00
2019-09-30 0.17 0.17 0.17 2.00
2018-09-30 0.21 0.21 0.20 2.00
LSE:TET Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 0.20
2017-12-31 0.19
2017-09-30 0.18
2017-06-30 0.16
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
2015-09-30 0.12
2015-06-30 0.10

*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 0/6, 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?

  • Treatt's last earnings update was 193 days ago.
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 exceeds its 5-year average (45.6% vs 23.9%)
  • Treatt's earnings growth has exceeded the GB Chemicals industry average in the past year (45.6% vs 30.1%).
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 7 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 USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 116.07 10.71 13.28
2017-12-31 112.85 10.13 13.17
2017-09-30 109.63 9.55 13.05
2017-06-30 99.63 8.16 12.09
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
2012-03-31 74.75 2.76 10.79
2011-12-31 74.63 3.55 10.66

*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 has improved its use of capital 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 5/6, 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 41.4x 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 7 months ago.

LSE:TET Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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
2012-03-31 23.62 16.33 3.57
2011-12-31 23.62 16.33 3.57
  • Treatt's level of debt (2.9%) 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 (70% vs 2.9% today).
  • Debt is well covered by operating cash flow (199.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 30x 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 6/6, 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
1.04%
Current annual income from Treatt dividends. Estimated to be 1.19% next year.
If you bought £2,000 of Treatt shares you are expected to receive £21 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 (1.96%).
  • Treatt's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.2%).
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 2.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 699 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
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 5.2%

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
2020-09-30 0.06 2.00
2019-09-30 0.05 2.00
2018-09-30 0.05 2.00
LSE:TET Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
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
2008-12-15 0.022 4.920
2008-11-18 0.022 6.055

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

  • Treatt is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
  • Treatt is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Treatt's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Treatt's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.
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 1.1%) - 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 1/6, 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 $603,000
TENURE AS CEO 6.3 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 been consistent with company performance over the past year.
  • Daemmon's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Daemmon Reeve

TITLE
CEO & Executive Director
COMPENSATION
$603K
TENURE
6.3 yrs

Richard Hope

TITLE
CFO & Executive Director
COMPENSATION
$393K
AGE
51
TENURE
15.5 yrs

Anita Steer

TITLE
Group Legal Counsel & Secretary

Douglas Rash

TITLE
Vice President of Global Sales
Board of Directors Tenure

Average tenure of the Treatt board of directors in years:

6.6
Average Tenure
  • The tenure for the Treatt board of directors is about average.
Board of Directors

Tim Jones

TITLE
Non-Executive Chairman
COMPENSATION
$62K
TENURE
6.8 yrs

Daemmon Reeve

TITLE
CEO & Executive Director
COMPENSATION
$603K
TENURE
6.5 yrs

Richard Hope

TITLE
CFO & Executive Director
COMPENSATION
$393K
AGE
51
TENURE
15.5 yrs

David Johnston

TITLE
Senior Independent Non-Executive Director
COMPENSATION
$37K

Jeff Iliffe

TITLE
Non-Executive Director
COMPENSATION
$39K
AGE
56
TENURE
5.8 yrs

Anita Haines

TITLE
Non Executive Director
COMPENSATION
$33K
TENURE
16.1 yrs

Richard Illek

TITLE
Non-Executive Director
COMPENSATION
$33K
TENURE
2.4 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 (£)
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

External News
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Simply Wall St News

Treatt plc (LON:TET): What Are Investors Earning On Their Capital?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Therefore, looking at how efficiently Treatt is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Should Investors Be Happy About Treatt plc’s (LON:TET) Cash Levels?

What is left after investment, determines the value of the stock since this cash flow technically belongs to investors of the company. … I will take you through Treatt’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … I will be analysing Treatt’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

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

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor. … Reeve’s pay and compare this to the company’s performance over the same period, as well as measure it against other

Simply Wall St -

What You Must Know About Treatt plc's (LON:TET) 15.43% ROE

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Treatt plc (LON:TET) delivered an ROE of 15.43% over the past 12 months, which is relatively in-line with its industry average of 15.74% during the same period. … Check out our latest analysis for Treatt

Simply Wall St -

What Should Investors Know About Treatt plc's (LON:TET) Return On Capital?

and looking to gauge the potential return on investment in Treatt plc (LON:TET). … Purchasing Treatt gives you an ownership stake in the company. … Your return is tied to TET’s ability to do this because the amount earned is used to invest in opportunities to grow the business or payout dividends, which are the two sources of return on investment.

Simply Wall St -

Should You Be Tempted To Buy Treatt plc (LON:TET) Because Of Its PE Ratio?

and want to begin learning the link between Treatt plc (LON:TET)’s fundamentals and stock market performance. … Treatt plc (LON:TET) is currently trading at a trailing P/E of 23.4x, which is lower than the industry average of 23.9x. … Although some investors may jump to the conclusion that this is a great buying opportunity, understanding the assumptions behind the P/E ratio might change your mind

Simply Wall St -

These Factors Make Treatt plc (LON:TET) A Great Investment

Attractive stocks have exceptional fundamentals. … In the case of Treatt plc (LON:TET), there's. … In the following section, I expand a bit more on these key aspects.

Simply Wall St -

Treatt plc (LON:TET): What Is Driving Earnings Margins?

Check out our latest analysis for Treatt Breaking Down TET's Profit Margin Attractive margins generally indicate a desirable ability to translate sales revenue in to earnings, and return for shareholders. … Margin Calculation for TET Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 10.71 Million ÷ 116.07 Million = 9.22% The past five years have seen Treatt's margin expand, as a result of 18.88% in average net income growth surpassing a 6.40% average growth in revenue, which suggests that the company has been able to convert a larger percentage of revenue into net income whilst grow their top line at the same time. … Understanding what could be driving Treatt's future earnings Based on future expectations, TET's profit margin will shift towards greater stability, with 3.43% in expected annual revenue growth and 3.60% earnings growth expected annually.

Simply Wall St -

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

Measuring Treatt plc's (LSE:TET) track record of past performance is an insightful exercise for investors. … Below, I will assess TET's recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. … Check out our latest analysis for Treatt Commentary On TET's Past Performance I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data.

Simply Wall St -

Treatt plc (LON:TET): All You Need Is Growth?

I will touched on some key aspects you should know on a high level, around its financials and growth prospects going forward. … LSE:TET Future Profit Apr 13th 18 The company is growing incredibly fast, with a year-on-year revenue growth of 24.52% over the past financial year , and a bottom line growth of 55.23%. … LSE:TET Historical Debt Apr 13th 18 TET's financial status is a key element to determine whether or not it is a risky investment - a key aspect most investors overlook when they focus too much on growth.

Simply Wall St -

TET Company Info

Map
Description

Treatt plc manufactures and supplies ingredient solutions for 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, herb, spice and floral portfolio, fruits and vegetables, and aroma and natural chemicals; and fragrance ingredients, including blends and ingredients. The company also provides natural cosmetic ingredients. Its products are used in food and drink, personal care, and household fragrance markets. The company also exports its products. Treatt plc was founded in 1886 and is based in Bury St Edmunds, the United Kingdom.

Details
Name: Treatt plc
TET
Exchange: LSE
Founded: 1886
£268,584,234
58,387,877
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
OTCPK TTTR.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB 5TT Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
Number of employees
Current staff
Staff numbers
355
Treatt employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/11/17 18:28
End of day share price update: 2018/11/16 00:00
Last estimates confirmation: 2018/10/11
Last earnings filing: 2018/05/08
Last earnings reported: 2018/03/31
Last annual earnings reported: 2017/09/30


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.