TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:TEP - FR0000051807 - Common Stock
55.32 EUR
+0.5 (+0.91%)
Overall TEP gets a fundamental rating of 5 out of 10. We evaluated TEP against 70 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on TEP. 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.
- In the past 5 years TEP has always been profitable.
- Each year in the past 5 years TEP had a positive operating cash flow.
1.2 Ratios
- TEP's Return On Assets of 4.32% is in line compared to the rest of the industry. TEP outperforms 48.57% of its industry peers.
- TEP's Return On Equity of 13.24% is in line compared to the rest of the industry. TEP outperforms 58.57% of its industry peers.
- With a Return On Invested Capital value of 8.66%, TEP perfoms like the industry average, outperforming 52.86% 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 significantly below the industry average of 26.75%.
- The last Return On Invested Capital (8.66%) for TEP is above the 3 year average (8.54%), which is a sign of increasing profitability.
| 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
- TEP's Profit Margin of 5.09% is in line compared to the rest of the industry. TEP outperforms 60.00% of its industry peers.
- In the last couple of years the Profit Margin of TEP has declined.
- TEP has a Operating Margin of 10.80%. This is in the better half of the industry: TEP outperforms 75.71% 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.
- TEP has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, TEP has more shares outstanding
- The debt/assets ratio for TEP has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 1.86 indicates that TEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TEP has a worse Altman-Z score (1.86) than 67.14% 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.
- Looking at the Debt to FCF ratio, with a value of 4.14, TEP is in line with its industry, outperforming 50.00% of the companies in the same industry.
- A Debt/Equity ratio of 1.00 indicates that TEP is somewhat dependend on debt financing.
- TEP's Debt to Equity ratio of 1.00 is on the low side compared to the rest of the industry. TEP is outperformed by 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.86 |
ROIC/WACC1.43
WACC6.04%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that TEP should not have too much problems paying its short term obligations.
- TEP has a Current ratio (1.10) which is in line with 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 has a Quick ratio (1.10) which is in line with its industry peers.
| 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.
- 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.
- 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%-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 3.84% yearly.
- The Revenue is expected to grow by 2.04% on average over the next years.
EPS Next Y-19.17%
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
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.
- 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
- The Price/Earnings ratio is 6.35, which indicates a rather cheap valuation of TEP.
- 98.57% of the companies in the same industry are more expensive than TEP, based on the Price/Earnings ratio.
- TEP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 4.04 indicates a rather cheap valuation of TEP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 98.57% of the companies listed in the same industry.
- TEP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.35 | ||
| Fwd PE | 4.04 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TEP is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.4 | ||
| EV/EBITDA | 4.03 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.26
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
- TEP has a Yearly Dividend Yield of 6.77%, which is a nice return.
- TEP's Dividend Yield is rather good when compared to the industry average which is at 2.27. TEP pays more dividend than 92.86% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.77% |
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-5.99%
EPS Next 3Y-1.77%
TELEPERFORMANCE / TEP.PA FAQ
Can you provide the ChartMill fundamental rating for TELEPERFORMANCE?
ChartMill assigns a fundamental rating of 5 / 10 to TEP.PA.
Can you provide the valuation status for TELEPERFORMANCE?
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 4 / 10.
What is the earnings growth outlook for TELEPERFORMANCE?
The Earnings per Share (EPS) of TELEPERFORMANCE (TEP.PA) is expected to decline by -19.17% in the next year.
Can you provide the dividend sustainability for TEP stock?
The dividend rating of TELEPERFORMANCE (TEP.PA) is 7 / 10 and the dividend payout ratio is 47.42%.