TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
Europe - EPA:TEP - FR0000051807 - Common Stock
60.1 EUR
+0.26 (+0.43%)
Taking everything into account, TEP scores 5 out of 10 in our fundamental rating. TEP was compared to 70 industry peers in the IT Services industry. TEP has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on TEP. TEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TEP had positive earnings in the past year.
In the past year TEP had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 4.32%, TEP is in line with its industry, outperforming 52.86% of the companies in the same industry.
TEP's Return On Equity of 13.24% is in line compared to the rest of the industry. TEP outperforms 55.71% of its industry peers.
TEP has a Return On Invested Capital of 8.66%. This is comparable to the rest of the industry: TEP outperforms 48.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TEP is below the industry average of 11.69%.
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
With a decent Profit Margin value of 5.09%, TEP is doing good in the industry, outperforming 64.29% 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 78.57% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TEP is creating some value.
Compared to 1 year ago, TEP has less shares outstanding
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
TEP has an Altman-Z score of 1.88. 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.
With a Altman-Z score value of 1.88, TEP is not doing good in the industry: 62.86% of the companies in the same industry are doing better.
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.
TEP has a Debt to FCF ratio (4.14) which is comparable to the rest of the industry.
TEP has a Debt/Equity ratio of 1.00. This is a neutral value indicating TEP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.00, TEP is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.51
WACC5.72%
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's Current ratio of 1.10 is on the low side compared to the rest of the industry. TEP is outperformed by 61.43% of its industry peers.
A Quick Ratio of 1.10 indicates that TEP should not have too much problems paying its short term obligations.
The Quick ratio of TEP (1.10) is comparable to the rest of the industry.
| 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.
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
TEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.55% yearly.
The Revenue is expected to grow by 2.68% on average over the next years.
EPS Next Y-17.08%
EPS Next 2Y-4.24%
EPS Next 3Y-0.61%
EPS Next 5Y5.55%
Revenue Next Year0.88%
Revenue Next 2Y1.24%
Revenue Next 3Y1.66%
Revenue Next 5Y2.68%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
TEP is valuated cheaply with a Price/Earnings ratio of 6.90.
Based on the Price/Earnings ratio, TEP is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.34, TEP is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.23, the valuation of TEP can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 97.14% of the companies listed in the same industry.
TEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.9 | ||
| Fwd PE | 4.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEP is valued cheaper than 88.57% of the companies in the same industry.
97.14% 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 | 2.6 | ||
| EV/EBITDA | 4.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.37
EPS Next 2Y-4.24%
EPS Next 3Y-0.61%
5. Dividend
5.1 Amount
TEP has a Yearly Dividend Yield of 6.96%, which is a nice return.
TEP's Dividend Yield is rather good when compared to the industry average which is at 3.87. TEP pays more dividend than 94.29% of the companies in the same industry.
TEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
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.
TEP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.42%
EPS Next 2Y-4.24%
EPS Next 3Y-0.61%
EPA:TEP (11/12/2025, 5:35:30 PM)
60.1
+0.26 (+0.43%)
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 Cap3.60B
Revenue(TTM)10.28B
Net Income(TTM)523.00M
Analysts79.09
Price Target118.19 (96.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.96% |
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)-1.33%
PT rev (3m)-13.08%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.73%
EPS NY rev (3m)-12.47%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.9 | ||
| Fwd PE | 4.23 | ||
| P/S | 0.35 | ||
| P/FCF | 2.6 | ||
| P/OCF | 2.21 | ||
| P/B | 0.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.19 |
EPS(TTM)8.71
EY14.49%
EPS(NY)14.21
Fwd EY23.65%
FCF(TTM)23.08
FCFY38.41%
OCF(TTM)27.23
OCFY45.3%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.37
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 | 1.88 |
F-Score6
WACC5.72%
ROIC/WACC1.51
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-17.08%
EPS Next 2Y-4.24%
EPS Next 3Y-0.61%
EPS Next 5Y5.55%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%0.79%
Revenue Next Year0.88%
Revenue Next 2Y1.24%
Revenue Next 3Y1.66%
Revenue Next 5Y2.68%
EBIT growth 1Y10.78%
EBIT growth 3Y8.5%
EBIT growth 5Y12.25%
EBIT Next Year42.04%
EBIT Next 3Y14.38%
EBIT Next 5Y13.08%
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%.