TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
EPA:TEP - Euronext Paris - Matif - FR0000051807 - Common Stock - Currency: EUR
TEP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 industry peers in the IT Services industry. Both the profitability and the financial health of TEP get a neutral evaluation. Nothing too spectacular is happening here. 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
In the past year TEP was profitable.
In the past year TEP had a positive cash flow from operations.
Each year in the past 5 years TEP has been profitable.
Each year in the past 5 years TEP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.33%, TEP is in line with its industry, outperforming 53.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.48%, TEP is in line with its industry, outperforming 49.30% of the companies in the same industry.
TEP has a Return On Invested Capital (8.42%) which is in line with its industry peers.
TEP had an Average Return On Invested Capital over the past 3 years of 8.54%. This is below the industry average of 11.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 11.48% | ||
| ROIC | 8.42% |
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's Profit Margin of 5.09% is fine compared to the rest of the industry. TEP outperforms 66.20% of its industry peers.
TEP's Profit Margin has declined in the last couple of years.
The Operating Margin of TEP (10.80%) is better than 80.28% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEP is still 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.
Compared to 1 year ago, TEP has an improved debt to assets ratio.
2.2 Solvency
TEP has an Altman-Z score of 1.95. 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 1.95 is on the low side compared to the rest of the industry. TEP is outperformed by 63.38% of its industry peers.
TEP has a debt to FCF ratio of 3.11. This is a good value and a sign of high solvency as TEP would need 3.11 years to pay back of all of its debts.
TEP's Debt to FCF ratio of 3.11 is in line compared to the rest of the industry. TEP outperforms 53.52% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that TEP is somewhat dependend on debt financing.
TEP has a Debt to Equity ratio (0.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.99
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.12 indicates that TEP should not have too much problems paying its short term obligations.
TEP's Current ratio of 1.12 is on the low side compared to the rest of the industry. TEP is outperformed by 63.38% of its industry peers.
A Quick Ratio of 1.12 indicates that TEP should not have too much problems paying its short term obligations.
TEP's Quick ratio of 1.12 is in line compared to the rest of the industry. TEP outperforms 42.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for TEP have decreased strongly by -12.99% in the last year.
The Earnings Per Share has been growing slightly by 5.04% on average over the past years.
TEP shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.19%.
Measured over the past years, TEP shows a quite strong growth in Revenue. The Revenue has been growing by 13.93% on average per year.
EPS 1Y (TTM)-12.99%
EPS 3Y-2.37%
EPS 5Y5.04%
EPS Q2Q%-28.46%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%18.68%
3.2 Future
The Earnings Per Share is expected to grow by 4.39% on average over the next years.
TEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.01% yearly.
EPS Next Y-5.26%
EPS Next 2Y2.51%
EPS Next 3Y4.76%
EPS Next 5Y4.39%
Revenue Next Year2.62%
Revenue Next 2Y2.54%
Revenue Next 3Y2.66%
Revenue Next 5Y3.01%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 8.07, the valuation of TEP can be described as reasonable.
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.
TEP is valuated cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.79 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 98.59% of the companies listed in the same industry.
TEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 4.79 |
4.2 Price Multiples
90.14% of the companies in the same industry are more expensive than TEP, based on the Enterprise Value to EBITDA ratio.
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 | 2.64 | ||
| EV/EBITDA | 4.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.6
EPS Next 2Y2.51%
EPS Next 3Y4.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.96%, TEP is a good candidate for dividend investing.
In the last 3 months the price of TEP has falen by -24.69%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.24, TEP pays a better dividend. On top of this TEP pays more dividend than 80.28% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.96% |
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
TEP pays out 44.17% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TEP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP44.17%
EPS Next 2Y2.51%
EPS Next 3Y4.76%
EPA:TEP (8/8/2025, 7:00:00 PM)
70.32
-0.14 (-0.2%)
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 Cap4.21B
Analysts78.18
Price Target130.5 (85.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.96% |
Yearly Dividend3.85
Dividend Growth(5Y)15.06%
DP44.17%
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)-0.93%
PT rev (3m)-5.28%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)-2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 4.79 | ||
| P/S | 0.41 | ||
| P/FCF | 2.64 | ||
| P/OCF | 2.32 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.21 |
EPS(TTM)8.71
EY12.39%
EPS(NY)14.68
Fwd EY20.88%
FCF(TTM)26.62
FCFY37.86%
OCF(TTM)30.28
OCFY43.06%
SpS171.71
BVpS76.1
TBVpS-36.3
PEG (NY)N/A
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 11.48% | ||
| ROCE | 12.74% | ||
| ROIC | 8.42% | ||
| ROICexc | 9.69% | ||
| ROICexgc | 85.93% | ||
| OM | 10.8% | ||
| PM (TTM) | 5.09% | ||
| GM | N/A | ||
| FCFM | 15.51% |
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 | 0.79 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 28.11% | ||
| Cap/Sales | 2.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 95.98% | ||
| Profit Quality | 304.78% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 1.95 |
F-Score6
WACC8.47%
ROIC/WACC0.99
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%-28.46%
EPS Next Y-5.26%
EPS Next 2Y2.51%
EPS Next 3Y4.76%
EPS Next 5Y4.39%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%18.68%
Revenue Next Year2.62%
Revenue Next 2Y2.54%
Revenue Next 3Y2.66%
Revenue Next 5Y3.01%
EBIT growth 1Y10.78%
EBIT growth 3Y8.5%
EBIT growth 5Y12.25%
EBIT Next Year47.16%
EBIT Next 3Y16.31%
EBIT Next 5Y13.5%
FCF growth 1Y39.58%
FCF growth 3Y20.59%
FCF growth 5Y22.88%
OCF growth 1Y31.85%
OCF growth 3Y16.69%
OCF growth 5Y17.17%