TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:TEP - FR0000051807 - Common Stock
58.8 EUR
+0.62 (+1.07%)
Overall TEP gets a fundamental rating of 5 out of 10. We evaluated TEP against 77 industry peers in the IT Services industry. TEP has an average financial health and profitability rating. TEP scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
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
TEP has a Return On Assets (4.32%) which is in line with its industry peers.
TEP has a Return On Equity (13.24%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 8.66%, TEP perfoms like the industry average, outperforming 51.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TEP is significantly below the industry average of 26.50%.
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
The Profit Margin of TEP (5.09%) is better than 64.94% of its industry peers.
TEP's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 10.80%, TEP is doing good in the industry, outperforming 79.22% of the companies in the same industry.
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.
The number of shares outstanding for TEP has been reduced compared to 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
An Altman-Z score of 1.87 indicates that TEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
TEP has a Altman-Z score of 1.87. This is in the lower half of the industry: TEP underperforms 64.94% 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 49.35% of the companies in the same industry.
A Debt/Equity ratio of 1.00 indicates that TEP is somewhat dependend on debt financing.
The Debt to Equity ratio of TEP (1.00) is worse than 62.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.87 |
ROIC/WACC1.38
WACC6.29%
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 Current ratio of 1.10. This is comparable to the rest of the industry: TEP outperforms 41.56% 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 in line compared to the rest of the industry. TEP outperforms 45.45% 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%.
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%.
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 3.84% on average per year.
Based on estimates for the next years, TEP will show a small growth in Revenue. The Revenue will grow by 2.04% on average per year.
EPS Next Y-17.25%
EPS Next 2Y-4.85%
EPS Next 3Y-1.14%
EPS Next 5Y3.84%
Revenue Next Year0.41%
Revenue Next 2Y0.91%
Revenue Next 3Y1.43%
Revenue Next 5Y2.04%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.75, the valuation of TEP can be described as very cheap.
TEP's Price/Earnings ratio is rather cheap when compared to the industry. TEP is cheaper than 98.70% of the companies in the same industry.
TEP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 4.19, the valuation of TEP can be described as very cheap.
Based on the Price/Forward Earnings ratio, TEP is valued cheaper than 97.40% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, TEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.75 | ||
| Fwd PE | 4.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 90.91% of the companies listed in the same industry.
98.70% of the companies in the same industry are more expensive than TEP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.55 | ||
| EV/EBITDA | 4.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y-4.85%
EPS Next 3Y-1.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.18%, TEP is a good candidate for dividend investing.
TEP's Dividend Yield is rather good when compared to the industry average which is at 3.76. TEP pays more dividend than 94.81% of the companies in the same industry.
TEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.18% |
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-4.85%
EPS Next 3Y-1.14%
EPA:TEP (12/9/2025, 5:29:53 PM)
58.8
+0.62 (+1.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners56.99%
Inst Owner ChangeN/A
Ins Owners2.11%
Ins Owner ChangeN/A
Market Cap3.52B
Revenue(TTM)10.28B
Net Income(TTM)523.00M
Analysts79.09
Price Target110.29 (87.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.18% |
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)-6.69%
PT rev (3m)-9.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-2.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.75 | ||
| Fwd PE | 4.19 | ||
| P/S | 0.34 | ||
| P/FCF | 2.55 | ||
| P/OCF | 2.16 | ||
| P/B | 0.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.13 |
EPS(TTM)8.71
EY14.81%
EPS(NY)14.03
Fwd EY23.87%
FCF(TTM)23.08
FCFY39.26%
OCF(TTM)27.23
OCFY46.3%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.34
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 | 1.87 |
F-Score6
WACC6.29%
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-17.25%
EPS Next 2Y-4.85%
EPS Next 3Y-1.14%
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.
What is the valuation status for TEP stock?
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.
Can you provide the financial health for TEP stock?
The financial health rating of TELEPERFORMANCE (TEP.PA) is 4 / 10.
How sustainable is the dividend of TELEPERFORMANCE (TEP.PA) stock?
The dividend rating of TELEPERFORMANCE (TEP.PA) is 7 / 10 and the dividend payout ratio is 47.42%.