TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
EPA:TEP - Euronext Paris - Matif - FR0000051807 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to TEP. TEP was compared to 68 industry peers in the IT Services industry. TEP has only an average score on both its financial health and profitability. TEP is valued quite cheap, while showing a decent growth score. This is a good combination! Finally TEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TEP was profitable.
TEP had a positive operating cash flow in the past year.
Each year in the past 5 years TEP has been profitable.
In the past 5 years TEP always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.33%, TEP is in line with its industry, outperforming 52.94% of the companies in the same industry.
TEP has a Return On Equity (11.48%) which is comparable to the rest of the industry.
TEP has a Return On Invested Capital (8.42%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for TEP is below the industry average of 10.89%.
| 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
Looking at the Profit Margin, with a value of 5.09%, TEP is in the better half of the industry, outperforming 67.65% of the companies in the same industry.
In the last couple of years the Profit Margin of TEP has declined.
TEP has a better Operating Margin (10.80%) than 82.35% 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
TEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, TEP has less shares outstanding
Compared to 5 years ago, TEP has more shares outstanding
TEP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.03 indicates that TEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.03, TEP is doing worse than 61.76% of the companies in the same industry.
The Debt to FCF ratio of TEP is 3.11, which is a good value as it means it would take TEP, 3.11 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.11, TEP perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
TEP has a Debt/Equity ratio of 0.79. This is a neutral value indicating TEP is somewhat dependend on debt financing.
TEP has a Debt to Equity ratio of 0.79. This is in the lower half of the industry: TEP underperforms 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.5
WACC5.6%
2.3 Liquidity
TEP has a Current Ratio of 1.12. 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 Current ratio of 1.12 is on the low side compared to the rest of the industry. TEP is outperformed by 61.76% of its industry peers.
A Quick Ratio of 1.12 indicates that TEP should not have too much problems paying its short term obligations.
The Quick ratio of TEP (1.12) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
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%.
Measured over the past 5 years, TEP shows a small growth in Earnings Per Share. The EPS has been growing by 5.04% on average per year.
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
TEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.39% yearly.
The Revenue is expected to grow by 3.01% on average over the next years.
EPS Next Y-5.26%
EPS Next 2Y2.51%
EPS Next 3Y4.76%
EPS Next 5Y4.39%
Revenue Next Year3.54%
Revenue Next 2Y3.26%
Revenue Next 3Y3.27%
Revenue Next 5Y3.01%
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
Based on the Price/Earnings ratio of 9.73, the valuation of TEP can be described as reasonable.
TEP's Price/Earnings ratio is rather cheap when compared to the industry. TEP is cheaper than 92.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, TEP is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.77, the valuation of TEP can be described as very cheap.
Based on the Price/Forward Earnings ratio, TEP is valued cheaply inside the industry as 95.59% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.19. TEP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 5.77 |
4.2 Price Multiples
TEP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TEP is cheaper than 85.29% of the companies in the same industry.
97.06% 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 | 3.18 | ||
| EV/EBITDA | 4.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.93
EPS Next 2Y2.51%
EPS Next 3Y4.76%
5. Dividend
5.1 Amount
TEP has a Yearly Dividend Yield of 4.70%, which is a nice return.
TEP's Dividend Yield is rather good when compared to the industry average which is at 7.37. TEP pays more dividend than 82.35% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, TEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
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
44.17% of the earnings are spent on dividend by TEP. 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.
DP44.17%
EPS Next 2Y2.51%
EPS Next 3Y4.76%
EPA:TEP (7/14/2025, 5:36:15 PM)
84.72
-2 (-2.31%)
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 Cap5.07B
Analysts77.5
Price Target137.25 (62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.7% |
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)-2.27%
PT rev (3m)-4.57%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 5.77 | ||
| P/S | 0.49 | ||
| P/FCF | 3.18 | ||
| P/OCF | 2.8 | ||
| P/B | 1.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.72 |
EPS(TTM)8.71
EY10.28%
EPS(NY)14.68
Fwd EY17.33%
FCF(TTM)26.62
FCFY31.43%
OCF(TTM)30.28
OCFY35.74%
SpS171.71
BVpS76.1
TBVpS-36.3
PEG (NY)N/A
PEG (5Y)1.93
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 | 2.03 |
F-Score6
WACC5.6%
ROIC/WACC1.5
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 Year3.54%
Revenue Next 2Y3.26%
Revenue Next 3Y3.27%
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%