TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:TEP • FR0000051807
53.08 EUR
+0.9 (+1.72%)
Last: Feb 9, 2026, 05:29 PM
We assign a fundamental rating of 5 out of 10 to TEP. TEP was compared to 74 industry peers in the IT Services industry. TEP has only an average score on both its financial health and profitability. TEP is valued quite cheap, while showing a decent growth score. This is a good combination! Finally TEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year TEP was profitable.
- TEP had a positive operating cash flow in the past year.
- TEP had positive earnings in each of the past 5 years.
- TEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TEP has a Return On Assets (4.32%) which is comparable to the rest of the industry.
- With a Return On Equity value of 13.24%, TEP perfoms like the industry average, outperforming 55.41% of the companies in the same industry.
- TEP's Return On Invested Capital of 8.66% is in line compared to the rest of the industry. TEP outperforms 52.70% of its industry peers.
- TEP had an Average Return On Invested Capital over the past 3 years of 8.54%. This is significantly below the industry average of 26.55%.
- The 3 year average ROIC (8.54%) for TEP is below the current ROIC(8.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 13.24% | ||
| ROIC | 8.66% |
ROA(3y)5.5%
ROA(5y)5.56%
ROE(3y)14.36%
ROE(5y)14.83%
ROIC(3y)8.54%
ROIC(5y)8.48%
1.3 Margins
- TEP has a Profit Margin (5.09%) which is in line with its industry peers.
- TEP's Profit Margin has declined in the last couple of years.
- TEP has a better Operating Margin (10.80%) than 74.32% of its industry peers.
- TEP's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.8% | ||
| PM (TTM) | 5.09% | ||
| GM | N/A |
OM growth 3Y-4.02%
OM growth 5Y-1.48%
PM growth 3Y-13.38%
PM growth 5Y-7.39%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- TEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, TEP has less shares outstanding
- TEP has more shares outstanding than it did 5 years ago.
- TEP has a better debt/assets ratio than last year.
2.2 Solvency
- TEP has an Altman-Z score of 1.85. This is not the best score and indicates that TEP is in the grey zone with still only limited risk for bankruptcy at the moment.
- TEP's Altman-Z score of 1.85 is on the low side compared to the rest of the industry. TEP is outperformed by 68.92% of its industry peers.
- The Debt to FCF ratio of TEP is 4.14, which is a neutral value as it means it would take TEP, 4.14 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of TEP (4.14) is comparable to the rest of the industry.
- TEP has a Debt/Equity ratio of 1.00. This is a neutral value indicating TEP is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.00, TEP is doing worse than 63.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.38
WACC6.3%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that TEP should not have too much problems paying its short term obligations.
- TEP has a worse Current ratio (1.10) than 62.16% of its industry peers.
- A Quick Ratio of 1.10 indicates that TEP should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.10, TEP perfoms like the industry average, outperforming 43.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- TEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.99%.
- TEP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.04% yearly.
- Looking at the last year, TEP shows a very strong growth in Revenue. The Revenue has grown by 23.19%.
- The Revenue has been growing by 13.93% on average over the past years. This is quite good.
EPS 1Y (TTM)-12.99%
EPS 3Y-2.37%
EPS 5Y5.04%
EPS Q2Q%-13.19%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%0.79%
3.2 Future
- TEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.84% yearly.
- TEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.04% yearly.
EPS Next Y-19.17%
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
EPS Next 5Y3.84%
Revenue Next Year0.41%
Revenue Next 2Y0.91%
Revenue Next 3Y1.43%
Revenue Next 5Y2.04%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- TEP is valuated cheaply with a Price/Earnings ratio of 6.09.
- Based on the Price/Earnings ratio, TEP is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
- TEP is valuated cheaply when we compare the Price/Earnings ratio to 27.93, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 3.87 indicates a rather cheap valuation of TEP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 97.30% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of TEP to the average of the S&P500 Index (27.77), we can say TEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.09 | ||
| Fwd PE | 3.87 |
4.2 Price Multiples
- TEP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TEP is cheaper than 91.89% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 98.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.3 | ||
| EV/EBITDA | 3.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
- TEP has a Yearly Dividend Yield of 7.91%, which is a nice return.
- TEP's Dividend Yield is rather good when compared to the industry average which is at 2.44. TEP pays more dividend than 93.24% of the companies in the same industry.
- TEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.91% |
5.2 History
- The dividend of TEP is nicely growing with an annual growth rate of 15.06%!
Dividend Growth(5Y)15.06%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- 47.42% of the earnings are spent on dividend by TEP. This is a bit on the high side, but may be sustainable.
- TEP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.42%
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
EPA:TEP (2/9/2026, 5:29:52 PM)
53.08
+0.9 (+1.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-05 2025-11-05
Earnings (Next)02-26 2026-02-26/amc
Inst Owners55.9%
Inst Owner ChangeN/A
Ins Owners2.11%
Ins Owner ChangeN/A
Market Cap3.18B
Revenue(TTM)10.28B
Net Income(TTM)523.00M
Analysts78.1
Price Target103.72 (95.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.91% |
Yearly Dividend3.85
Dividend Growth(5Y)15.06%
DP47.42%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.95%
PT rev (3m)-12.24%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.84%
EPS NY rev (3m)-3.23%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.09 | ||
| Fwd PE | 3.87 | ||
| P/S | 0.31 | ||
| P/FCF | 2.3 | ||
| P/OCF | 1.95 | ||
| P/B | 0.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.94 |
EPS(TTM)8.71
EY16.41%
EPS(NY)13.7
Fwd EY25.81%
FCF(TTM)23.08
FCFY43.49%
OCF(TTM)27.23
OCFY51.29%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.21
Graham Number113.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 13.24% | ||
| ROCE | 13.1% | ||
| ROIC | 8.66% | ||
| ROICexc | 10.29% | ||
| ROICexgc | 122.45% | ||
| OM | 10.8% | ||
| PM (TTM) | 5.09% | ||
| GM | N/A | ||
| FCFM | 13.44% |
ROA(3y)5.5%
ROA(5y)5.56%
ROE(3y)14.36%
ROE(5y)14.83%
ROIC(3y)8.54%
ROIC(5y)8.48%
ROICexc(3y)9.04%
ROICexc(5y)9.43%
ROICexgc(3y)39.24%
ROICexgc(5y)39.37%
ROCE(3y)12.92%
ROCE(5y)12.82%
ROICexgc growth 3Y-8.26%
ROICexgc growth 5Y7.61%
ROICexc growth 3Y-7.37%
ROICexc growth 5Y0.81%
OM growth 3Y-4.02%
OM growth 5Y-1.48%
PM growth 3Y-13.38%
PM growth 5Y-7.39%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Debt/EBITDA | 2.1 | ||
| Cap/Depr | 32.5% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.03% | ||
| Profit Quality | 264.25% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 1.85 |
F-Score6
WACC6.3%
ROIC/WACC1.38
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)2.86%
Cap/Sales(5y)3.27%
Profit Quality(3y)217.37%
Profit Quality(5y)208.18%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.99%
EPS 3Y-2.37%
EPS 5Y5.04%
EPS Q2Q%-13.19%
EPS Next Y-19.17%
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
EPS Next 5Y3.84%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%0.79%
Revenue Next Year0.41%
Revenue Next 2Y0.91%
Revenue Next 3Y1.43%
Revenue Next 5Y2.04%
EBIT growth 1Y10.78%
EBIT growth 3Y8.5%
EBIT growth 5Y12.25%
EBIT Next Year39.61%
EBIT Next 3Y13.31%
EBIT Next 5Y12.01%
FCF growth 1Y36.97%
FCF growth 3Y20.59%
FCF growth 5Y22.88%
OCF growth 1Y28.55%
OCF growth 3Y16.69%
OCF growth 5Y17.17%
TELEPERFORMANCE / TEP.PA FAQ
Can you provide the ChartMill fundamental rating for TELEPERFORMANCE?
ChartMill assigns a fundamental rating of 5 / 10 to TEP.PA.
Can you provide the valuation status for TELEPERFORMANCE?
ChartMill assigns a valuation rating of 7 / 10 to TELEPERFORMANCE (TEP.PA). This can be considered as Undervalued.
What is the profitability of TEP stock?
TELEPERFORMANCE (TEP.PA) has a profitability rating of 5 / 10.
What is the earnings growth outlook for TELEPERFORMANCE?
The Earnings per Share (EPS) of TELEPERFORMANCE (TEP.PA) is expected to decline by -19.17% in the next year.
Can you provide the dividend sustainability for TEP stock?
The dividend rating of TELEPERFORMANCE (TEP.PA) is 7 / 10 and the dividend payout ratio is 47.42%.