Tate & Lyle (TATE.L)

Consumer · LSE · UK

£5.63-0.62% today

Fundamentals

Market cap£2.47B

P/E ratio25.3

Dividend yield3.55%

Revenue growth (YoY)+2.2%

Profit margin4.8%

Return on equity6.2%

Next earnings2026-05-21

Valuation and ratings

DCF fair value£2.60

Upside to fair value-53.8%

Analyst target (mean)£5.35

Analyst range£3.75 to £6.15

Analysts covering12

Consensus viewhold

Moat score39/100

Overall rating24/100, Sell

Tate & Lyle trades at £5.63, which is 54% above the £2.60 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.

Our moat model scores it 39 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 25.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Tate & Lyle

Tate & Lyle plc, together with its subsidiaries, engages in the provision of ingredients and solutions to the food, beverages, and other industries in North America, Asia, Middle East, Africa, Latin America, and Europe. Its portfolio includes sweeteners, fibres, stabilisers and functional systems, hydrocolloids, and starches, proteins, and functional flours. The company's products are used in beverages, dairy, soups, sauces and dressings, bakery and snacks, confectionery, household, clinical nutrition, industrial, meat and seafood, and personal care applications. The company has a strategic collaboration with BioHarvest Sciences Inc. The company was incorporated in 1903 and is headquartered in London, the United Kingdom.

Industry: Packaged FoodsEmployees: 4,840HQ: United Kingdom

TATE.L passes 5 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Dividend powerhouses

Yields above 3%, filtered for the one thing yield screens never check: whether the company can actually afford it.

Low volatility defensives

Companies that move less than the market and pay you to wait. The holdings that let you sleep, and let you hold everything else.

Consumer staples

The companies that sell what people buy regardless of the economy. Dull, and dull is the entire point.

UK stocks worth a look

The FTSE is a basket of multinationals that happen to be listed in London. That distinction changes everything about what you are buying.

Dividend aristocrats

Companies with long, unbroken records of raising their dividend. The record is the point: it is evidence, not a promise.

Common questions

Is Tate & Lyle (TATE.L) undervalued?

Against our discounted cash flow estimate of £2.60, TATE.L at £5.63 is 54% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is TATE.L's P/E ratio?

TATE.L trades at 25.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.