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 74 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. 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.
In the past year TEP had a positive cash flow from operations.
TEP had positive earnings in each of the past 5 years.
TEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.33%, TEP perfoms like the industry average, outperforming 51.35% 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 47.30% of the companies in the same industry.
TEP has a Return On Invested Capital of 8.42%. This is comparable to the rest of the industry: TEP outperforms 52.70% of 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 11.05%.
| 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 has a Profit Margin of 5.09%. This is in the better half of the industry: TEP outperforms 66.22% of its industry peers.
In the last couple of years the Profit Margin of TEP has declined.
Looking at the Operating Margin, with a value of 10.80%, TEP belongs to the top of the industry, outperforming 81.08% 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
TEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
TEP has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TEP has more shares outstanding
Compared to 1 year ago, TEP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.05 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 2.05. This is in the lower half of the industry: TEP underperforms 62.16% 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 has a Debt to FCF ratio of 3.11. This is comparable to the rest of the industry: TEP outperforms 51.35% of its industry peers.
A Debt/Equity ratio of 0.79 indicates that TEP is somewhat dependend on debt financing.
TEP's Debt to Equity ratio of 0.79 is on the low side compared to the rest of the industry. TEP is outperformed by 63.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.41
WACC5.99%
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 63.51% of its industry peers.
TEP has a Quick 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 has a Quick ratio (1.12) which is in line with its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 5.04% on average over the past years.
Looking at the last year, TEP shows a very strong growth in Revenue. 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 4.76% yearly.
Based on estimates for the next years, TEP will show a small growth in Revenue. The Revenue will grow by 3.27% on average per year.
EPS Next Y-5.26%
EPS Next 2Y2.51%
EPS Next 3Y4.76%
EPS Next 5YN/A
Revenue Next Year3.54%
Revenue Next 2Y3.26%
Revenue Next 3Y3.27%
Revenue Next 5YN/A
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 10.54, 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 91.89% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TEP to the average of the S&P500 Index (26.32), we can say TEP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.25, 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 94.59% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of TEP to the average of the S&P500 Index (22.13), we can say TEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.54 | ||
| Fwd PE | 6.25 |
4.2 Price Multiples
87.84% 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 95.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.45 | ||
| EV/EBITDA | 4.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.09
EPS Next 2Y2.51%
EPS Next 3Y4.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.52%, TEP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.79, TEP pays a better dividend. On top of this TEP pays more dividend than 86.49% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
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.
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 (6/16/2025, 11:39:13 AM)
91.8
+1.06 (+1.17%)
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 Cap5.50B
Analysts80
Price Target140.44 (52.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
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)-1.9%
PT rev (3m)-3.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-12.29%
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 | 10.54 | ||
| Fwd PE | 6.25 | ||
| P/S | 0.53 | ||
| P/FCF | 3.45 | ||
| P/OCF | 3.03 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.85 |
EPS(TTM)8.71
EY9.49%
EPS(NY)14.68
Fwd EY16%
FCF(TTM)26.62
FCFY29%
OCF(TTM)30.28
OCFY32.99%
SpS171.71
BVpS76.1
TBVpS-36.3
PEG (NY)N/A
PEG (5Y)2.09
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 | 2.05 |
F-Score6
WACC5.99%
ROIC/WACC1.41
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 5YN/A
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 5YN/A
EBIT growth 1Y10.78%
EBIT growth 3Y8.5%
EBIT growth 5Y12.25%
EBIT Next Year47.16%
EBIT Next 3Y16.31%
EBIT Next 5YN/A
FCF growth 1Y39.58%
FCF growth 3Y20.59%
FCF growth 5Y22.88%
OCF growth 1Y31.85%
OCF growth 3Y16.69%
OCF growth 5Y17.17%