TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
EPA:TEP - FR0000051807 - Common Stock
65.3 EUR
-0.48 (-0.73%)
TEP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the IT Services industry. TEP has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on TEP. TEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TEP had positive earnings in the past year.
TEP had a positive operating cash flow in the past year.
In the past 5 years TEP has always been profitable.
In the past 5 years TEP always reported a positive cash flow from operatings.
1.2 Ratios
TEP has a Return On Assets of 4.32%. This is comparable to the rest of the industry: TEP outperforms 50.70% of its industry peers.
TEP has a Return On Equity (13.24%) which is in line with its industry peers.
TEP has a Return On Invested Capital of 8.66%. This is comparable to the rest of the industry: TEP outperforms 53.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TEP is below the industry average of 11.13%.
The last Return On Invested Capital (8.66%) for TEP is above the 3 year average (8.54%), which is a sign of increasing profitability.
| 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 better Profit Margin (5.09%) than 64.79% of its industry peers.
In the last couple of years the Profit Margin of TEP has declined.
Looking at the Operating Margin, with a value of 10.80%, TEP belongs to the top of the industry, outperforming 80.28% of the companies in the same industry.
In the last couple of years the Operating Margin of TEP has remained more or less at the same level.
| 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.
TEP has less shares outstanding than it did 1 year ago.
TEP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TEP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.91 indicates that TEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TEP (1.91) is worse than 64.79% of its industry peers.
TEP has a debt to FCF ratio of 4.14. This is a neutral value as TEP would need 4.14 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.14, TEP perfoms like the industry average, outperforming 46.48% of the companies in the same industry.
TEP has a Debt/Equity ratio of 1.00. This is a neutral value indicating TEP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 1.00, TEP is not doing good in the industry: 69.01% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.91 |
ROIC/WACC1.05
WACC8.28%
2.3 Liquidity
TEP has a Current Ratio of 1.10. This is a normal value and indicates that TEP is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TEP (1.10) is worse than 66.20% of its industry peers.
TEP has a Quick Ratio of 1.10. This is a normal value and indicates that TEP is financially healthy and should not expect problems in meeting its short term obligations.
TEP's Quick ratio of 1.10 is on the low side compared to the rest of the industry. TEP is outperformed by 61.97% of its industry peers.
| 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.
The Revenue has grown by 23.19% in the past year. This is a very strong growth!
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
Based on estimates for the next years, TEP will show a small growth in Earnings Per Share. The EPS will grow by 5.27% on average per year.
Based on estimates for the next years, TEP will show a small growth in Revenue. The Revenue will grow by 2.44% on average per year.
EPS Next Y-15.27%
EPS Next 2Y-3.15%
EPS Next 3Y0.22%
EPS Next 5Y5.27%
Revenue Next Year1.39%
Revenue Next 2Y1.7%
Revenue Next 3Y2.04%
Revenue Next 5Y2.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 7.50 indicates a rather cheap valuation of TEP.
Compared to the rest of the industry, the Price/Earnings ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 97.18% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. TEP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 4.49, which indicates a rather cheap valuation of TEP.
TEP's Price/Forward Earnings ratio is rather cheap when compared to the industry. TEP is cheaper than 97.18% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TEP to the average of the S&P500 Index (22.69), we can say TEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 4.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEP is valued cheaply inside the industry as 83.10% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TEP is valued cheaper than 98.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.83 | ||
| EV/EBITDA | 4.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y-3.15%
EPS Next 3Y0.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.36%, TEP is a good candidate for dividend investing.
The stock price of TEP dropped by -27.87% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 7.54, TEP pays a better dividend. On top of this TEP pays more dividend than 88.73% of the companies listed in the same industry.
TEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
5.2 History
On average, the dividend of TEP grows each year by 15.06%, which is quite nice.
Dividend Growth(5Y)15.06%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
TEP pays out 47.42% of its income as dividend. 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-3.15%
EPS Next 3Y0.22%
EPA:TEP (9/8/2025, 5:35:30 PM)
65.3
-0.48 (-0.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners53.98%
Inst Owner ChangeN/A
Ins Owners2.17%
Ins Owner ChangeN/A
Market Cap3.91B
Analysts78.18
Price Target122.46 (87.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
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)-9.94%
PT rev (3m)-14.46%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-10.56%
EPS NY rev (3m)-10.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.2%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 4.49 | ||
| P/S | 0.38 | ||
| P/FCF | 2.83 | ||
| P/OCF | 2.4 | ||
| P/B | 0.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.38 |
EPS(TTM)8.71
EY13.34%
EPS(NY)14.54
Fwd EY22.27%
FCF(TTM)23.08
FCFY35.35%
OCF(TTM)27.23
OCFY41.69%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.49
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%
ROICexcg growth 3Y-8.26%
ROICexcg 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 | 1.91 |
F-Score6
WACC8.28%
ROIC/WACC1.05
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-15.27%
EPS Next 2Y-3.15%
EPS Next 3Y0.22%
EPS Next 5Y5.27%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%0.79%
Revenue Next Year1.39%
Revenue Next 2Y1.7%
Revenue Next 3Y2.04%
Revenue Next 5Y2.44%
EBIT growth 1Y10.78%
EBIT growth 3Y8.5%
EBIT growth 5Y12.25%
EBIT Next Year47.16%
EBIT Next 3Y16.31%
EBIT Next 5Y12.81%
FCF growth 1Y36.97%
FCF growth 3Y20.59%
FCF growth 5Y22.88%
OCF growth 1Y28.55%
OCF growth 3Y16.69%
OCF growth 5Y17.17%