Tate & Lyle TATE.L
United KingdomConsumer Defensive · Packaged FoodsLondon Stock Exchange · GBP
5.54 GBP (−1.0%)
9 analysts
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Tate & Lyle is a global manufacturer of food ingredients and solutions for the food and beverage industry, selling sweeteners, texturants, and dietary fiber to consumer product manufacturers.
Listed on London Stock Exchange · Symbol TATE.L · LON: TATE · Currency GBP
Key points
from its scores- ✓Good share-price trend9.1
- ✓Favourable backdrop9.0
- ✕Weak growth4.9
- !Average business quality5.1
- !Modest dividend5.5
AI analysis
bottom line, main risk, context and newsValuation is reasonable and financial health is solid, but growth is low and the dividend payout is high, limiting upside potential.
Tate & Lyle presents solid financial health (score 6.42) with moderate leverage (ND/EBITDA of 2.42) and an attractive valuation (forward P/E of 13.06, FCF yield of 6.72%), although its quality is average (ROE of 6.15%) and revenue growth is low (2.20%). The strong momentum (47.62%) reflects a recent improvement in market perception.
The main risk is the high dividend payout ratio (92.17%), which leaves little room to maintain the dividend if earnings growth does not materialize or if the business faces cost pressures.
Context and risks
Tate & Lyle is a food ingredients manufacturer headquartered in the United Kingdom, a country with moderate governance risk. No specific regulatory, geopolitical, or business model risks are identified that are not already reflected in its base risk profile. Its defensive consumer ingredients business has no material exposure to current macro factors (rates, energy, shipping routes) that would justify an additional adjustment.
Is Tate & Lyle stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Consumer Defensive median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 25.5 | 19.8 | +29% |
| EV / EBITDA | 8.7 | 10.8 | −19% |
| Price / book | 1.6 | 2.7 | −43% |
| Price / sales | 1.2 | 1.2 | +0% |
Sector: median of the 124 Consumer Defensive companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.5 out of 10 (median for Consumer Defensive: 6.3).
Average analyst target: 5.54 GBP, −1.0% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Defensive medianValuation
- P/E
- 25.5
- Forward P/E
- 13.1
- EV / EBITDA
- 8.7
- Price / book
- 1.6
- Price / sales
- 1.2
- PEG
- 0.59
- Market cap
- 2.5B GBP
- Enterprise value
- 3.4B GBP
Profitability
- ROE
- 6.2%
- ROA
- 4.1%
- ROIC (approx.)
- 9.9%
- Gross margin
- 45.8%
- Operating margin
- 14.3%
- Net margin
- 4.8%
- Free cash flow
- 166.5M GBP
- FCF yield
- 6.7%
- Cash conversion
- 42%
Solvency
- Total debt
- 1.3B GBP
- Net debt
- 950.0M GBP
- Cash
- 344.0M GBP
- EBITDA
- 392.0M GBP
- Net debt / EBITDA
- 2.42
- Debt / equity
- 80.98
- Current ratio
- 2.71
- Quick ratio
- 1.50
Growth
- Revenue growth
- +2.2%
- EPS (TTM)
- 0.22 GBP
- EPS (forward)
- 0.43 GBP
Dividend
- Dividend yield
- 3.6%
- Payout
- 92.2%
Risk and market
- Beta
- 0.34
- Analyst consensus
- Hold (9)
- Target price
- 5.54 GBP
Recent news
All TATE.L news →Compare it with its sector
All 124 in Consumer Defensive →Frequently asked questions about Tate & Lyle
Is Tate & Lyle stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Consumer Defensive median (within 15%). Valuation score: 6.5 out of 10 (median for Consumer Defensive: 6.3). Average analyst target: 5.54 GBP, −1.0% versus the price. This is not investment advice.
What score does Tate & Lyle get on MeridIAn Screener?
It scores 6.5 out of 10, rank 578 of 2,130 (better than 72% of the companies analysed). Its strongest category is Momentum (9.1) and its weakest, Growth (4.9). Analysis of 08/10/2026.
What is Tate & Lyle's P/E ratio?
Its P/E is 25.5: the share price equals 25.5 times earnings per share over the last 12 months. The Consumer Defensive median is 19.8. Based on the earnings analysts expect, the forward P/E is 13.1.
How much is Tate & Lyle worth on the stock market?
Its market capitalisation is 2.5B GBP and its enterprise value, debt included, is 3.4B GBP.
How much debt does Tate & Lyle have?
Its net debt (debt minus cash) is 950.0M GBP. That is 2.42 times its EBITDA; the Consumer Defensive median is 2.38.
Does Tate & Lyle pay a dividend?
Yes: its dividend yield is 3.57% and it pays out 92% of its earnings.
How has Tate & Lyle stock performed over the last year?
It has risen 48.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 5.80 GBP. Past performance does not guarantee future results.
What do analysts think of Tate & Lyle?
9 analysts cover it; their average recommendation is “Hold” and their average target is 5.54 GBP (−1.0% versus the price). It is an estimate, not market data.