Skip to Content
Morningstar

Tate & Lyle PLC TATE

Morningstar Rating
Unlock
Stock XLON Rating as of
GBX 616.50 −6.50 (1.04%)
View Full Chart
As of Delayed Price Closed
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Tate & Lyle: Acquisition of CP Kelco Makes Strategic Sense; Shares Cheap

Diana Radu

We confirm our GBX 900 fair value estimate for narrow-moat Tate & Lyle after it announced an agreement to acquire US-based specialty chemical producer CP Kelco from J.M. Huber for a total consideration of USD 1.8 billion on a debt-free, cash-free basis. CP Kelco’s portfolio consists primarily of natural-based ingredients, such as pectin and specialty gums used to improve the “mouthfeel” of food products. This represents a key platform for Tate & Lyle that is now being strengthened by CP Kelco’s leading portfolio and is aligned with consumer demand for clean-label, plant-based, fiber-rich food products.

Read Full Report

Price vs Fair Value

View History
TATE is trading at a 585% premium.
Price
GBX 623.00
Fair Value
GBX 129.00
Uncertainty
Medium
1-Star Price
GBX 2,344.00
5-Star Price
GBX 179.00
Economic Moat
Msrndv
Capital Allocation
Lbqxyqp

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.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if TATE is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
GBX 623.00
Day Range
GBX 614.00–627.00
52-Week Range
GBX 587.00–777.50
Bid/Ask
GBX 602.00 / GBX 649.00
Market Cap
GBX 247.03 Bil
Volume/Avg
1.8 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
10.72
Price/Sales
1.53
Dividend Yield (Trailing)
3.07%
Dividend Yield (Forward)
3.07%
Total Yield
4.07%

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
Website
https://www.tateandlyle.com

Competitors

Valuation

View More
Metric
TATE
INGR
IFF
Price/Earnings (Normalized)
 10.7213.1237.14
Price/Book Value
 2.022.011.72
Price/Sales
 1.530.972.16
Price/Cash Flow
 12.538.0023.63
Price/Earnings
TATE
INGR
IFF

Financial Strength

Metric
TATE
INGR
IFF
Quick Ratio
 2.171.350.75
Current Ratio
 3.222.441.68
Interest Coverage
 9.289.48−5.87
Quick Ratio
TATE
INGR
IFF

Profitability

Metric
TATE
INGR
IFF
Return on Assets (Normalized)
 9.48%7.71%1.21%
Return on Equity (Normalized)
 18.56%16.85%2.46%
Return on Invested Capital (Normalized)
 12.35%11.19%2.46%
Return on Assets
TATE
INGR
IFF
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Packaged Foods Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Nestle SA ADR
NSRGY
QyzwrjtpFwn$271.8 Bil
 Danone SA ADR
DANOY
NscwctttjNgtqqf$40.2 Bil
 The Kraft Heinz Co
KHC
GmjlcqdWxxzbxt$39.2 Bil
 General Mills Inc
GIS
XmnchvmgMcvggvf$35.8 Bil
 Kellanova Co
K
ChmkzchmyFfnxsz$19.6 Bil
 McCormick & Co Inc Registered Shs Non Vtg
MKC
YpqzqpvkZnnrr$18.1 Bil
 Hormel Foods Corp
HRL
BcgtxqkfPbvsnd$16.6 Bil
 Campbell Soup Co
CPB
PnqlgxlGhz$13.6 Bil
 Conagra Brands Inc
CAG
DflptwfjKqhq$13.6 Bil
 Lamb Weston Holdings Inc
LW
YjllnzyjDfqlwz$12.1 Bil

Sponsor Center