TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
Europe - EPA:TEP - FR0000051807 - Common Stock
63.62 EUR
+0.4 (+0.63%)
TEP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 74 industry peers in the IT Services industry. TEP has an average financial health and profitability rating. TEP may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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 56.76% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.66%, TEP is in line with its industry, outperforming 50.00% of the companies in the same industry.
TEP had an Average Return On Invested Capital over the past 3 years of 8.54%. This is below the industry average of 11.84%.
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 66.22% of its industry peers.
TEP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.80%, TEP is in the better half of the industry, outperforming 78.38% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TEP is creating some value.
TEP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TEP has been increased compared to 5 years ago.
The debt/assets ratio for TEP has been reduced compared to a year ago.
2.2 Solvency
TEP has an Altman-Z score of 1.90. 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.
The Altman-Z score of TEP (1.90) is worse than 64.86% 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.
With a Debt to FCF ratio value of 4.14, TEP perfoms like the industry average, outperforming 48.65% 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 68.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.9 |
ROIC/WACC1.53
WACC5.66%
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.
With a Current ratio value of 1.10, TEP is not doing good in the industry: 60.81% of the companies in the same industry are doing better.
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 41.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
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.
The Revenue has grown by 23.19% in the past year. This is a very strong growth!
TEP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.93% yearly.
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 5.47% 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 2.63% on average per year.
EPS Next Y-16.47%
EPS Next 2Y-3.93%
EPS Next 3Y-0.35%
EPS Next 5Y5.47%
Revenue Next Year1.04%
Revenue Next 2Y1.43%
Revenue Next 3Y1.79%
Revenue Next 5Y2.63%
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.
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
With a Price/Earnings ratio of 7.30, the valuation of TEP can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 97.30% of the companies listed in the same industry.
TEP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.35.
Based on the Price/Forward Earnings ratio of 4.45, the valuation of TEP can be described as very cheap.
Based on the Price/Forward Earnings ratio, TEP is valued cheaper than 98.65% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TEP to the average of the S&P500 Index (22.86), we can say TEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 4.45 |
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 89.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TEP is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.76 | ||
| EV/EBITDA | 4.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y-3.93%
EPS Next 3Y-0.35%
5. Dividend
5.1 Amount
TEP has a Yearly Dividend Yield of 6.59%, which is a nice return.
The stock price of TEP dropped by -26.21% 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 3.93, TEP pays a better dividend. On top of this TEP pays more dividend than 90.54% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
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 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-3.93%
EPS Next 3Y-0.35%
EPA:TEP (10/13/2025, 7:00:00 PM)
63.62
+0.4 (+0.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners58.68%
Inst Owner ChangeN/A
Ins Owners2.17%
Ins Owner ChangeN/A
Market Cap3.81B
Analysts78.18
Price Target119.79 (88.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
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)-2.19%
PT rev (3m)-12.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-11.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.3 | ||
| Fwd PE | 4.45 | ||
| P/S | 0.37 | ||
| P/FCF | 2.76 | ||
| P/OCF | 2.34 | ||
| P/B | 0.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.31 |
EPS(TTM)8.71
EY13.69%
EPS(NY)14.3
Fwd EY22.48%
FCF(TTM)23.08
FCFY36.28%
OCF(TTM)27.23
OCFY42.79%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.45
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 | 1.9 |
F-Score6
WACC5.66%
ROIC/WACC1.53
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-16.47%
EPS Next 2Y-3.93%
EPS Next 3Y-0.35%
EPS Next 5Y5.47%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%0.79%
Revenue Next Year1.04%
Revenue Next 2Y1.43%
Revenue Next 3Y1.79%
Revenue Next 5Y2.63%
EBIT growth 1Y10.78%
EBIT growth 3Y8.5%
EBIT growth 5Y12.25%
EBIT Next Year42.04%
EBIT Next 3Y14.38%
EBIT Next 5Y13.02%
FCF growth 1Y36.97%
FCF growth 3Y20.59%
FCF growth 5Y22.88%
OCF growth 1Y28.55%
OCF growth 3Y16.69%
OCF growth 5Y17.17%