Tate & Lyle Plc (TATE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Premier Foods Plc

Greggs Plc

Volvere Plc

Bakkavor Group Plc

Cake Box Holdings Plc

Tate & Lyle Plc

Greencore Group Plc

Carr's Group Plc

Dekel Agri-Vision Plc

Hotel Chocolat Group Plc

Finsbury Food Group Plc

Why is Tate & Lyle Plc ?

Weak Long Term Fundamental Strength with a -8.91% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.83% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -6.50% and Operating profit at -8.91% over the last 5 years

With a growth in Operating Profit of 102.15%, the company declared Very Positive results in Mar 26

PRE-TAX PROFIT(Q) At GBP 57 MM has Grown at 456.25%
NET PROFIT(Q) At GBP 41 MM has Grown at 286.36%
DIVIDEND PAYOUT RATIO(Y) Highest at 142.55%

With ROE of 6.13%, it has a very expensive valuation with a 1.54 Price to Book Value

Over the past year, while the stock has generated a return of 4.83%, its profits have risen by 117.8% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 4.83% in the last 1 year, much lower than market (FTSE 100) returns of 17.87%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tate & Lyle Plc should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tate & Lyle Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tate & Lyle Plc

4.83%

-0.65

56.71%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.50%

EBIT Growth (5y)

-8.91%

EBIT to Interest (avg)

4.81

Debt to EBITDA (avg)

1.99

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

0.81

Tax Ratio

48.86%

Dividend Payout Ratio

90.29%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

8.68%

ROE (avg)

6.83%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.54

EV to EBIT

18.73

EV to EBITDA

9.58

EV to Capital Employed

1.35

EV to Sales

1.68

PEG Ratio

0.21

Dividend Yield

3.58%

ROCE (Latest)

7.19%

ROE (Latest)

6.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

PRE-TAX PROFIT(Q)

At GBP 57 MM has Grown at 456.25%

NET PROFIT(Q)

At GBP 41 MM has Grown at 286.36%

DIVIDEND PAYOUT RATIO(Y)

Highest at 142.55%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.92 times

Here's what is working for Tate & Lyle Plc

Pre-Tax Profit

At GBP 57 MM has Grown at 456.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 41 MM has Grown at 286.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (GBP MM)

Dividend Payout Ratio

Highest at 142.55%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Tate & Lyle Plc

Debtors Turnover Ratio

Lowest at 4.92 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio