Treatt plc (TET) AI Stock Analysis

• Market Cap: £193.69M
• Dividend Yield: 2.62%
• Average Volume (3M): 129.68K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.06
• Revenue Growth: 3.85%
• EPS Growth: 31.09%
• Country: UK
• Employees: 379
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals - Specialty
• EPS (TTM): 0.24
• Shares Outstanding: 60,796,844
• 10 Day Avg. Volume: 136,952
• 30 Day Avg. Volume: 129,683
• PEG Ratio: 0.44
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.41
• Price to Cash Flow (P/CF): 10.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 452.50p
• Price Target Upside: 43.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Treatt plc scores a solid 71 overall, reflecting its strong financial performance and positive corporate events that signal confidence in its future. These strengths are somewhat offset by bearish technical indicators and a valuation that suggests the stock is fairly priced. The company's strategic focus on market expansion and premium product growth further supports its stable position in the chemicals industry.

Treatt plc Business Overview & Revenue Model

Company Description

Treatt plc is an established manufacturer and supplier operating in the flavor and fragrance industries. The company specializes in the creation and distribution of innovative ingredient solutions used in the food, beverage, and personal care sectors. Treatt's core offerings include a diverse range of natural extracts and aroma chemicals, catering to the growing demand for natural and authentic flavor experiences.

How the Company Makes Money

Treatt plc generates revenue primarily through the sale of its flavor and fragrance ingredients to a global customer base, which includes manufacturers in the food, beverage, and personal care industries. The company's revenue streams are mainly driven by its expertise in creating bespoke ingredient solutions and its ability to maintain strong relationships with key industry players. By focusing on natural innovation and quality, Treatt meets the increasing consumer preference for natural products, thereby enhancing its market position and driving sales growth. Additionally, strategic partnerships with major multinational corporations and collaborations with leading research institutions contribute to the company's earnings by expanding its product offerings and market reach.

Treatt plc Financial Statement Overview

Summary

Treatt plc demonstrates strong financial health with consistent revenue and profit growth, robust profitability margins, and a stable balance sheet with low leverage. Cash flow metrics indicate solid cash management, though slightly negative free cash flow growth suggests room for improvement in capital efficiency.

Income Statement

Treatt plc has shown consistent revenue growth, with a 3.8% increase from 2023 to 2024. The company's gross profit margin stands at 29.1%, indicating strong profitability. The net profit margin of 9.4% reflects efficient cost management. EBIT and EBITDA margins are solid at 13.0% and 15.8%, respectively, indicating good operational efficiency.

Balance Sheet

Treatt plc maintains a stable financial position with a low debt-to-equity ratio of 0.02, indicating low leverage and financial risk. The company's return on equity (ROE) is 10.1%, showing effective use of equity. The equity ratio of 83.6% demonstrates a strong capital structure with high equity financing.

Cash Flow

The company exhibits strong cash flow management with a free cash flow growth rate of -2.4% from 2023 to 2024. The operating cash flow to net income ratio is 1.46, indicating healthy cash generation from operations. The free cash flow to net income ratio is 1.07, reflecting good conversion of profit into cash.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
143.55M	153.07M	147.40M	140.19M	124.33M	109.02M
	Gross Profit
43.26M	44.49M	44.82M	39.08M	42.22M	31.88M
	EBIT
18.31M	19.87M	18.32M	15.77M	21.35M	15.09M
	EBITDA
23.28M	24.22M	19.31M	19.05M	21.52M	15.70M
	Net Income Common Stockholders
11.31M	14.40M	10.94M	13.31M	15.15M	9.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80M	1.79M	809.00K	2.35M	7.26M	7.74M
	Total Assets
178.33M	169.85M	175.02M	188.18M	149.42M	123.52M
	Total Debt
12.14M	2.52M	11.19M	24.77M	16.37M	7.31M
	Net Debt
10.35M	739.00K	10.38M	22.42M	9.11M	-427.00K
	Total Liabilities
40.68M	27.84M	37.77M	54.33M	43.12M	32.40M
	Stockholders Equity
137.65M	142.01M	137.25M	133.85M	106.30M	91.12M
Cash Flow		Free Cash Flow
12.12M	15.40M	15.78M	-14.16M	-5.80M	-11.33M
	Operating Cash Flow
17.26M	21.07M	21.49M	-1.39M	8.57M	13.49M
	Investing Cash Flow
-4.81M	-5.63M	-4.16M	-7.17M	-14.36M	-24.88M
	Financing Cash Flow
-8.33M	-14.37M	-12.51M	4.38M	963.00K	-3.85M

Treatt plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 314.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TET, the sentiment is Negative. The current price of 314.5 is below the 20-day moving average (MA) of 359.68, below the 50-day MA of 390.63, and below the 200-day MA of 432.91, indicating a bearish trend. The MACD of -18.18 indicates Positive momentum. The RSI at 31.40 is Neutral, neither overbought nor oversold. The STOCH value of 29.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:TET.

Treatt plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULVR	81 Outperform	£119.90B	24.52	30.27%	3.10%	-0.76%	-12.83%
GNC	72 Outperform	£782.21M	17.97	10.18%	1.10%	-5.57%	38.90%
TET	71 Outperform	£193.69M	13.60	10.31%	2.62%	3.85%	31.09%
BATS	71 Outperform	£69.85B	23.28	5.92%	7.40%	-5.19%	―
DGE	64 Neutral	$45.22B	16.08	35.82%	3.77%	-3.88%	-11.33%
PZC	52 Neutral	£328.47M	―	-2.48%	4.58%	-16.16%	80.50%
Sector *	47 Neutral	$2.64B	-3.21	-21.68%	3.30%	4.19%	-30.23%

Treatt plc Corporate Events

Treatt plc Announces Voting Rights and Capital Structure

Treatt plc announced that its capital consists of 61,279,062 ordinary shares, with 60,796,844 shares having voting rights. This figure is crucial for shareholders to determine their notification obligations under the FCA’s Disclosure Guidance and Transparency Rules, impacting how stakeholders manage their interests in the company.

Treatt Plc CFO Ryan Govender to Depart for New Role

Treatt Plc has announced the departure of its Chief Financial Officer, Ryan Govender, who will leave to join Johnson Service Group Plc. Govender will remain in his role until September 30, 2025, and the company has begun the search for his successor. This change in leadership comes as the company continues to focus on its strategic goals in the natural extracts and ingredients market.

Treatt plc Directors Engage in Share Transactions

Treatt plc has announced transactions involving its directors, David Shannon and Ryan Govender, who have purchased ordinary shares as part of a dividend reinvestment plan. These transactions, conducted outside a trading venue, reflect the directors’ ongoing investment in the company, potentially signaling confidence in Treatt’s future performance and stability to stakeholders.

Ameriprise Financial Acquires Significant Stake in Treatt PLC

Treatt PLC, a UK-based company, recently announced a notification regarding a change in major holdings involving Ameriprise Financial, Inc., a U.S.-based entity. As of January 30, 2025, Ameriprise Financial holds a 5.094% stake in Treatt PLC, which was formally notified on January 31, 2025. This acquisition or disposal of voting rights highlights Ameriprise’s significant interest in Treatt, potentially impacting the company’s shareholder structure and market strategy.

Ameriprise Adjusts Voting Rights in Treatt PLC

Treatt PLC, a UK-based issuer, has experienced a change in its voting rights holdings due to Ameriprise Financial, Inc. crossing a threshold with its stake in the company. The voting rights held by Ameriprise Financial, Inc. in Treatt PLC decreased from 5.094% to 4.562%, as of January 31, 2025. This adjustment in voting rights reflects a transfer out of temporary proxy voting shares, indicating a strategic shift in the ownership structure and potentially impacting stakeholder interests in Treatt PLC.

Treatt plc Announces Successful AGM Results

Treatt plc announced the results of its Annual General Meeting held on January 30, 2025, where all resolutions were passed by shareholders. Key resolutions included the approval of the annual accounts, directors’ remuneration, and the re-election of several directors, along with the re-appointment of auditors. The approval of these resolutions and the smooth conduct of the AGM underscore Treatt’s stable governance structure and shareholder confidence, positioning the company well for continued growth in its sector.

Treatt plc Announces Steady Start to 2025 with Positive Outlook

Treatt plc reports that its Q1 revenue aligns with management’s expectations, and Q2 has begun positively with a strong pipeline and order intake. The company continues to navigate high orange oil prices by leveraging its product capabilities, focusing on growing high-margin premium volumes, and expanding in new markets like China, where they plan to open a Shanghai Innovation Centre. The new organizational structure, effective from January 2025, aims to enhance regional focus and customer engagement, while cash generation remains on target for the year.