Tate and Lyle PLC is a beverages company well established in the UK with strong revenues a relatively stable share price, which right now is at the lower end of its prici

Tate & Lyle PLC is a UK beverage and food manufacturer. They are well known in the UK for producing Sugar, Syrup & sauces, more towards the sweet & confectionery markets. Sugar is the most popular product which is sold in pretty much every store in the UK. As a result of this strong bond with supermarkets, Tate & Lyles revenue is well established along with its stock price too.

From a financial aspect, the share is well priced. The total market cap is £3bn with H1 2021 (APR-SEPT) revenue at £1.547Bn and a profit after tax of £157m. Both show relative increases of 19% and 20% in revenues and profits from the same time period last year. Based on these numbers, Minipip would expect 2021/2022 financials to be £3bn with a profit after tax of  £325m. Looking at the balance sheet, it's very good too. Cash on hand is £385 (down £99M) however total assets have increased £200 to a total of £3.1bn. Total liabilities amounted to £1.6bn, leaving net positive assets of £1,508bn. This gives a L/A ratio of 51.6%, which is average.

From a technical aspect, the stock looks relatively cheap with support dating back to 2009 in play. The first support comes in at £6.25. A break below here takes the stock towards £6 and the true low would be £5.  (Which is a 26% fall from its current price). To the upside, initial targets are £7 followed by £8.14. A break above here could take the stock towards £8.86 highs. RSi reads 38.6 so it could decline a little more.

Overall, Tate & Lyle is a good stock for lower-risk investors. Revenues are solid (as per over the last 5 years) and the same applies to profits. The balance is healthy giving a 51% net debt level. Looking at the chart we are at the lower end of the range over the last 6 years, therefore, making sense to see an increase in share price over the next 12-18 months. If the stock did reach the highs the return will only be 41% but given the downside risk in minipip's opinion of 25%, the Risk/Rewards seems okay.