Tate & Lyle plc Fundamental Analysis
Tate & Lyle plc (TATYF) shows weak financial fundamentals with a PE ratio of 23.18, profit margin of 4.83%, and ROE of 6.17%. The company generates $2.0B in annual revenue with moderate year-over-year growth of 5.40%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TATYF's fundamental strength across five key dimensions:
Efficiency Score
WeakTATYF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTATYF trades at attractive valuation levels.
Growth Score
ModerateTATYF shows steady but slowing expansion.
Financial Health Score
ExcellentTATYF maintains a strong and stable balance sheet.
Profitability Score
WeakTATYF struggles to sustain strong margins.
Key Financial Metrics
Is TATYF Expensive or Cheap?
P/E Ratio
TATYF trades at 23.18 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TATYF's PEG of 1.39 indicates fair valuation.
Price to Book
The market values Tate & Lyle plc at 1.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.62 times EBITDA. This is generally considered low.
How Well Does TATYF Make Money?
Net Profit Margin
For every $100 in sales, Tate & Lyle plc keeps $4.83 as profit after all expenses.
Operating Margin
Core operations generate 8.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.17 in profit for every $100 of shareholder equity.
ROA
Tate & Lyle plc generates $2.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tate & Lyle plc produces operating cash flow of $236.09M, showing steady but balanced cash generation.
Free Cash Flow
Tate & Lyle plc produces free cash flow of $120.99M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.27 in free cash annually.
FCF Yield
TATYF converts 5.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.18
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.81
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How TATYF Stacks Against Its Sector Peers
| Metric | TATYF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.18 | 21.43 | Neutral |
| ROE | 6.17% | 1134.00% | Weak |
| Net Margin | 4.83% | -2810.00% (disorted) | Weak |
| Debt/Equity | 0.81 | 0.81 | Neutral |
| Current Ratio | 2.71 | 2.39 | Strong Liquidity |
| ROA | 2.64% | -540348.00% (disorted) | Weak |
TATYF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tate & Lyle plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-80.30%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
-80.91%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-86.07%
Industry Style: Defensive, Dividend, Low Volatility
Declining