Tate & Lyle plc
Tate & Lyle plc Fundamental Analysis
Tate & Lyle plc (TATYF) shows weak financial fundamentals with a PE ratio of 53.00, profit margin of 1.92%, and ROE of 2.17%. The company generates $1.8B in annual revenue with weak year-over-year growth of -5.94%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.6/100 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
ModerateTATYF shows balanced valuation metrics.
Growth Score
WeakTATYF faces weak or negative growth trends.
Financial Health Score
ExcellentTATYF maintains a strong and stable balance sheet.
Profitability Score
ModerateTATYF maintains healthy but balanced margins.
Key Financial Metrics
Is TATYF Expensive or Cheap?
P/E Ratio
TATYF trades at 53.00 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TATYF's PEG of -2.57 indicates potential undervaluation.
Price to Book
The market values Tate & Lyle plc at 1.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.50 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 $1.92 as profit after all expenses.
Operating Margin
Core operations generate 5.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.17 in profit for every $100 of shareholder equity.
ROA
Tate & Lyle plc generates $0.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tate & Lyle plc generates limited operating cash flow of $119.79M, signaling weaker underlying cash strength.
Free Cash Flow
Tate & Lyle plc produces free cash flow of $69.88M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.16 in free cash annually.
FCF Yield
TATYF converts 3.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
53.001
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.83
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How TATYF Stacks Against Its Sector Peers
| Metric | TATYF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 53.00 | 23.25 | Worse (Expensive) |
| ROE | 2.17% | 1240.00% | Weak |
| Net Margin | 1.92% | -9728.00% (disorted) | Weak |
| Debt/Equity | 0.83 | 0.77 | Neutral |
| Current Ratio | 2.19 | 2.54 | Strong Liquidity |
| ROA | 0.94% | -203388.00% (disorted) | Weak |
TATYF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
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
-43.25%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
-1.40%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-40.17%
Industry Style: Defensive, Dividend, Low Volatility
Declining