TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
EPA:TEP • FR0000051807
52 EUR
+1.1 (+2.16%)
Last: Feb 20, 2026, 07:00 PM
Overall TEP gets a fundamental rating of 5 out of 10. We evaluated TEP against 71 industry peers in the IT Services industry. TEP has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on TEP. Finally 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.
- TEP had positive earnings in each of the past 5 years.
- Each year in the past 5 years TEP had a positive operating cash flow.
1.2 Ratios
- TEP's Return On Assets of 4.32% is in line compared to the rest of the industry. TEP outperforms 49.30% 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 (8.66%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for TEP is below the industry average of 11.09%.
- 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 better Profit Margin (5.09%) than 61.97% of its industry peers.
- In the last couple of years the Profit Margin of TEP has declined.
- With a decent Operating Margin value of 10.80%, TEP is doing good in the industry, outperforming 77.46% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TEP is creating some value.
- The number of shares outstanding for TEP has been reduced compared to 1 year ago.
- Compared to 5 years ago, TEP has more shares outstanding
- The debt/assets ratio for TEP has been reduced compared to a year ago.
2.2 Solvency
- TEP has an Altman-Z score of 1.84. 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.
- Looking at the Altman-Z score, with a value of 1.84, TEP is doing worse than 69.01% of the companies in the same industry.
- 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.
- TEP has a Debt to FCF ratio of 4.14. This is comparable to the rest of the industry: TEP outperforms 50.70% of its industry peers.
- A Debt/Equity ratio of 1.00 indicates that TEP is somewhat dependend on debt financing.
- TEP has a Debt to Equity ratio of 1.00. This is in the lower half of the industry: TEP underperforms 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.39
WACC6.22%
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.
- TEP has a worse Current ratio (1.10) than 60.56% of its industry peers.
- A Quick Ratio of 1.10 indicates that TEP should not have too much problems paying its short term obligations.
- TEP's Quick ratio of 1.10 is in line compared to the rest of the industry. TEP outperforms 45.07% 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
- The Earnings Per Share is expected to grow by 3.84% on average over the next years.
- Based on estimates for the next years, TEP will show a small growth in Revenue. The Revenue will grow by 2.04% on average per year.
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
- Based on the Price/Earnings ratio of 5.97, the valuation of TEP can be described as very cheap.
- Based on the Price/Earnings ratio, TEP is valued cheaper than 98.59% of the companies in the same industry.
- TEP is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
- TEP is valuated cheaply with a Price/Forward Earnings ratio of 3.80.
- TEP's Price/Forward Earnings ratio is rather cheap when compared to the industry. TEP is cheaper than 98.59% of the companies in the same industry.
- TEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 3.8 |
4.2 Price Multiples
- 92.96% of the companies in the same industry are more expensive than TEP, based on the Enterprise Value to EBITDA ratio.
- TEP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TEP is cheaper than 98.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.25 | ||
| EV/EBITDA | 3.9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.32%, TEP is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.64, TEP pays a better dividend. On top of this TEP pays more dividend than 95.77% 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 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.32% |
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
- 47.42% of the earnings are spent on dividend by TEP. 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.
DP47.42%
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
EPA:TEP (2/20/2026, 7:00:00 PM)
52
+1.1 (+2.16%)
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 Cap3.11B
Revenue(TTM)10.28B
Net Income(TTM)523.00M
Analysts76.36
Price Target103.72 (99.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.32% |
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)-2.52%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 3.8 | ||
| P/S | 0.3 | ||
| P/FCF | 2.25 | ||
| P/OCF | 1.91 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.9 |
EPS(TTM)8.71
EY16.75%
EPS(NY)13.7
Fwd EY26.34%
FCF(TTM)23.08
FCFY44.39%
OCF(TTM)27.23
OCFY52.36%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.18
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 | 1.84 |
F-Score6
WACC6.22%
ROIC/WACC1.39
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%.