November 14, 2024
Top 10 Stock Tate & Lyle Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Tate & Lyle Strong Buy

360 METRICS	November 14, 2024
VALUE
VALUE	39
GROWTH
GROWTH	89
SAFETY
SAFETY	73
SENTIMENT
SENTIMENT	89
360° VIEW
360° VIEW	95

ANALYSIS: With an Obermatt 360° View of 95 (better than 95% compared with alternatives) for 2024, overall professional sentiment and financial characteristics for the stock Tate & Lyle are very positive. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for Tate & Lyle. The consolidated Growth Rank has a good rank of 89, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. This means that growth is higher than for 89% of competitors in the same industry. The consolidated Safety Rank at 73 means that the company has a financing structure that is safer than 73% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a good rank of 89, which means that professional investors are more optimistic about the stock than for 89% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 39, meaning that the share price of Tate & Lyle is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 61% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 95, Tate & Lyle is better positioned than 95% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 89), a safe financing structure (Safety Rank of 73), and positive professional market sentiment (Sentiment Rank of 89), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of Tate & Lyle compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (89% better than peers). The value rank could be the reverse reflection of that (11%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for Tate & Lyle very positive

SENTIMENT METRICS	November 14, 2024
ANALYST OPINION
ANALYST OPINION	88
OPINIONS CHANGE
OPINIONS CHANGE	38
PRO HOLDINGS
PRO HOLDINGS	94
MARKET PULSE
MARKET PULSE	72
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	89

ANALYSIS: With an Obermatt Sentiment Rank of 89 (better than 89% compared with alternatives) for 2024, overall professional sentiment and engagement for the stock Tate & Lyle is very positive. The Sentiment Rank is based on consolidating four sentiment indicators where all but one are above average for Tate & Lyle. Analyst Opinions are at a rank of 88 (better than 88% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. The Professional Investors rank is also good at 94, which means that currently, professional investors hold more stock in this company than in 94% of alternative investment opportunities. Pros tend to favor investing in this company. In addition, Market Pulse has a rank of 72 which means that the current professional news and professional social networks are on the positive side when discussing this company (more positive news than for 72% of competitors). But Analyst Opinions Change has a below-average rank of 38, which means that stock research experts are currently changing their opinions for the worse when it comes to recommending this stock. In other words, they are getting more critical of investments in Tate & Lyle. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 89 (more positive than 89% compared with investment alternatives), Tate & Lyle has a reputation among professional investors that is significantly higher than that of its competitors. This is an early sign of caution, even if the stock has significantly appreciated. If analysts change their opinions, the stock may become too expensive. If the price is on the way down, the trend may continue. This may be a stock with a good reputation and history, but it may have reached its breaking point by now. Investors should look at the Value Ranks as well. If they indicate trouble, it might just materialize in the future. ...read more

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Value Strategy: Tate & Lyle Stock Price Value below-average critical

VALUE METRICS	November 14, 2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	27
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	60
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	36
DIVIDEND YIELD
DIVIDEND YIELD	43
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	39

ANALYSIS: With an Obermatt Value Rank of 39 (worse than 61% compared with alternatives), Tate & Lyle shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Tate & Lyle. Only Price-to-Profit (also referred to as price-earnings, P/E) indicates good stock value with a rank of 60, which means that the stock price compared with what market professionals expect for future profits is lower than for 60% of comparable companies, indicating a good value concerning Tate & Lyle's profit levels. But Price-to-Sales is 27 which means that the stock price compared with what market professionals expect for future profits is higher than for 73% of comparable companies, indicating a low value concerning Tate & Lyle's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 36 and for dividend yield, which is lower than for 57% of comparable companies, making the stock more expensive as regards to the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 39, is a hold recommendation based on Tate & Lyle's stock price compared with the company's operational size and dividend yields. Can we rely on only one good value indicator? Only if we know the company well. In this case, a high Price-to-Profit Rank, while Price-to-Sales and Price-to-Book are both below the market typical levels, means that the company can charge higher prices for its products and needs less capital to produce them. If this is sustainable, then Tate & Lyle is a good investment because profits count most in enterprise valuations. The low dividend yield indicates that the company is confident it can do something with the generated cash that is more valuable than paying the profits out to the shareholders in the form of dividends. ...read more

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Growth Strategy: Tate & Lyle Growth Momentum high

GROWTH METRICS	November 14, 2024
REVENUE GROWTH
REVENUE GROWTH	90
PROFIT GROWTH
PROFIT GROWTH	25
CAPITAL GROWTH
CAPITAL GROWTH	94
STOCK RETURNS
STOCK RETURNS	63
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	89

ANALYSIS: With an Obermatt Growth Rank of 89 (better than 89% compared with alternatives) for 2024, Tate & Lyle shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Tate & Lyle. Sales Growth has a rank of 90 which means that currently, professionals expect the company to grow more than 90% of its competitors. Capital Growth is also above 25% of competitors with a rank of 94, and Stock Returns with the rank of 63 is also an outperformance. Only Profit Growth is low with a rank of 25 which means that currently, professionals expect the company to grow its profits less than 75% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 89, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Tate & Lyle is a good growth stock. ...read more

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Safety Strategy: Tate & Lyle Debt Financing Safety above-average

SAFETY METRICS	November 14, 2024
LEVERAGE
LEVERAGE	60
REFINANCING
REFINANCING	73
LIQUIDITY
LIQUIDITY	70
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	73

ANALYSIS: With an Obermatt Safety Rank of 73 (better than 73% compared with alternatives), the company Tate & Lyle has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Tate & Lyle is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Tate & Lyle. Leverage is at 60, meaning the company has a below-average debt-to-equity ratio. It has less debt than 60% of its competitors. Refinancing is at a rank of 73, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 73% of its competitors. Finally, Liquidity is also good at a rank of 70, which means that the company generates more profit to service its debt than 70% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 73 (better than 73% compared with alternatives), Tate & Lyle has a financing structure that is safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: Tate & Lyle Top Financial Performance

COMBINED PERFORMANCE	November 14, 2024
VALUE
VALUE	39
GROWTH
GROWTH	89
SAFETY
SAFETY	70
COMBINED
COMBINED	85

ANALYSIS: With an Obermatt Combined Rank of 85 (better than 85% compared with investment alternatives), Tate & Lyle (Packaged Foods & Meats, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of Tate & Lyle are low in value (priced high) with a consolidated Value Rank of 39 (worse than 61% of alternatives). But they show above-average growth (Growth Rank of 89) and are safely financed (Safety Rank of 73, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Tate & Lyle's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Tate & Lyle exhibits low value (Obermatt Value Rank of 39), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 89). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 73) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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