Fact based stock research
Tate & Lyle (LSE:TATE)
GB00BP92CJ43
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Tate & Lyle stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% 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 49 (worse than 51% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 74, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 78, 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 49), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 74) 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). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | United Kingdom |
| Industry | Packaged Foods & Meats |
| Index | FTSE All Shares, FTSE 250, FTSE 350, Low Emissions, Diversity Europe, SDG 12, SDG 13, SDG 2, SDG 3, SDG 5 |
| Size class | Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Tate & Lyle
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 67 |
|
36 |
|
36 |
|
49 |
|
| GROWTH | ||||||||
| GROWTH | 3 |
|
66 |
|
60 |
|
65 |
|
| SAFETY | ||||||||
| SAFETY | 72 |
|
68 |
|
49 |
|
74 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
76 |
|
96 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
84 |
|
74 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% 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 49 (worse than 51% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 74, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 78, 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 49), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 74) 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). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 67 |
|
36 |
|
36 |
|
49 |
|
| GROWTH | ||||||||
| GROWTH | 3 |
|
66 |
|
60 |
|
65 |
|
| SAFETY | ||||||||
| SAFETY | 72 |
|
68 |
|
49 |
|
74 |
|
| COMBINED | ||||||||
| COMBINED | 59 |
|
60 |
|
37 |
|
78 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% 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 half of the indicators below and half above average for Tate & Lyle. Price-to-Profit (also referred to as price-earnings, P/E) is 59 which means that the stock price compared with what market professionals expect for future profits is lower than for 59% of comparable companies, indicating a good 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 53, which means that the stock price is lower as regards to invested capital than for 53% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 73% of alternatives (only 27% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 57% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a hold recommendation based on Tate & Lyle's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 35 |
|
19 |
|
16 |
|
27 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 84 |
|
54 |
|
58 |
|
59 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 31 |
|
51 |
|
38 |
|
53 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 91 |
|
33 |
|
58 |
|
43 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 67 |
|
36 |
|
36 |
|
49 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), Tate & Lyle shows an above-average growth dynamic in its industry. Investors also speak of positive 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 100 which means that currently, professionals expect the company to grow more than 100% of its competitors. Capital Growth is also above 23% of competitors with a rank of 70, and Stock Returns with the rank of 51 is also an outperformance. Only Profit Growth is low with a rank of 23 which means that currently, professionals expect the company to grow its profits less than 77% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, 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. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 5 |
|
85 |
|
24 |
|
100 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 52 |
|
4 |
|
56 |
|
23 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
78 |
|
87 |
|
70 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 33 |
|
56 |
|
40 |
|
51 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 3 |
|
66 |
|
60 |
|
65 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 74 (better than 74% 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 71, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 71% 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 74 (better than 74% 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. Investors may not have a debt issue with Tate & Lyle but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 69 |
|
55 |
|
39 |
|
60 |
|
| REFINANCING | ||||||||
| REFINANCING | 71 |
|
90 |
|
68 |
|
71 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 68 |
|
38 |
|
43 |
|
70 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 72 |
|
68 |
|
49 |
|
74 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
79 |
|
80 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
7 |
|
93 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
74 |
|
71 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
79 |
|
65 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
76 |
|
96 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Tate & Lyle from December 19, 2024.
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