Tate & Lyle PLC TATE

Morningstar Rating
GBX 684.50 +6.50 (0.96%)
View Full Chart

Company Report

Narrow-Moat Tate & Lyle Makes Good Progress Improving EBITDA in a Challenging Market Environment

Tate & Lyle, or T&L, is focused on the increasing use of alternative ingredients in food and beverage to remove unhealthy components (sugar, fat, salt), improve nutritional credentials through added fiber, and increase the shelf life of products. We assign the company a narrow moat, as we believe that efforts over the last few years to optimize the portfolio, culminating with the sale in 2022 of a controlling stake in the commoditized primary products business unit, have improved the company’s pricing power and competitive position.

Price vs Fair Value

TATE is trading at a 498% premium.
Price
GBX 684.50
Fair Value
GBX 195.00
Uncertainty
Medium
1-Star Price
GBX 6,872.00
5-Star Price
GBX 157.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Tate & Lyle’s portfolio is well positioned to benefit from secular trends that see consumers demanding healthier, safer, cleaner-label products.

Bears

The company is relying quite heavily on acquisitions in its attempt to expand its offering and capabilities, which may lead to expensive, value-destructive deals.

News

Trading Information

Previous Close Price
GBX 678.00
Day Range
GBX 677.00687.50
52-Week Range
GBX 587.00731.50
Bid/Ask
GBX 601.00 / GBX 787.00
Market Cap
GBX 260.84 Bil
Volume/Avg
872,184 / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
11.77
Price/Sales
1.68
Dividend Yield (Trailing)
2.79%
Dividend Yield (Forward)
2.79%
Total Yield
3.75%

Company Profile

Tate & Lyle PLC is a global provider of food and beverage ingredients and solutions. Following the sale in 2022 of a controlling stake in its commodity ingredients business, as well as its exit from the sugar business a decade earlier, Tate & Lyle is now focused on specialty ingredients—sweeteners, starches, and soluble fiber. It has 2,700 employees and operates in over 140 countries, with most of its revenue generated in North America.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Mid Core
Total Number of Employees
3,318

Competitors

Valuation

Metric
TATE
IFF
INGR
Price/Earnings (Normalized)
11.7736.3714.85
Price/Book Value
2.191.892.42
Price/Sales
1.682.371.19
Price/Cash Flow
13.7626.759.73
Price/Earnings
TATE
IFF
INGR

Financial Strength

Metric
TATE
IFF
INGR
Quick Ratio
2.170.761.46
Current Ratio
3.222.382.52
Interest Coverage
9.28−6.2511.70
Quick Ratio
TATE
IFF
INGR

Profitability

Metric
TATE
IFF
INGR
Return on Assets (Normalized)
9.48%1.56%8.28%
Return on Equity (Normalized)
18.56%3.20%17.45%
Return on Invested Capital (Normalized)
12.35%2.82%11.64%
Return on Assets
TATE
IFF
INGR

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