TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:TEP - FR0000051807 - Common Stock
60.92 EUR
+0.26 (+0.43%)
We assign a fundamental rating of 5 out of 10 to TEP. TEP was compared to 75 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
TEP had positive earnings in the past year.
In the past year TEP had a positive cash flow from operations.
TEP had positive earnings in each of the past 5 years.
Each year in the past 5 years TEP had a positive operating cash flow.
1.2 Ratios
TEP has a Return On Assets (4.32%) which is comparable to the rest of the industry.
TEP has a Return On Equity (13.24%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.66%, TEP is in line with its industry, outperforming 52.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TEP is significantly below the industry average of 26.58%.
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 fine compared to the rest of the industry. TEP outperforms 64.00% of its industry peers.
In the last couple of years the Profit Margin of TEP has declined.
TEP has a better Operating Margin (10.80%) than 78.67% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEP is still creating some value.
Compared to 1 year ago, TEP has less shares outstanding
The number of shares outstanding for TEP has been increased compared to 5 years ago.
TEP has a better debt/assets ratio than last year.
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.
The Altman-Z score of TEP (1.88) is worse than 69.33% 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.
TEP has a Debt to FCF ratio (4.14) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.00 indicates that TEP is somewhat dependend on debt financing.
TEP has a worse Debt to Equity ratio (1.00) than 62.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.38
WACC6.26%
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 worse Current ratio (1.10) than 60.00% 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
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.
Looking at the last year, TEP shows a very strong growth in Revenue. The Revenue has grown by 23.19%.
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
Based on estimates for the next years, TEP will show a small growth in Earnings Per Share. The EPS will grow by 3.84% on average per year.
Based on estimates for the next years, TEP will show a small growth in Revenue. The Revenue will grow by 2.04% on average per year.
EPS Next Y-17.25%
EPS Next 2Y-4.85%
EPS Next 3Y-1.14%
EPS Next 5Y3.84%
Revenue Next Year0.41%
Revenue Next 2Y0.91%
Revenue Next 3Y1.43%
Revenue Next 5Y2.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 6.99, which indicates a rather cheap valuation of TEP.
Compared to the rest of the industry, the Price/Earnings ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 98.67% of the companies listed in the same industry.
TEP is valuated cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.34 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 97.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. TEP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 4.34 |
4.2 Price Multiples
TEP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TEP is cheaper than 90.67% of the companies in the same industry.
98.67% 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 | 2.64 | ||
| EV/EBITDA | 4.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.39
EPS Next 2Y-4.85%
EPS Next 3Y-1.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.86%, TEP is a good candidate for dividend investing.
TEP's Dividend Yield is rather good when compared to the industry average which is at 2.33. TEP pays more dividend than 92.00% of the companies in the same industry.
TEP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
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
TEP pays out 47.42% of its income as dividend. 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.
DP47.42%
EPS Next 2Y-4.85%
EPS Next 3Y-1.14%
EPA:TEP (12/16/2025, 12:20:02 PM)
60.92
+0.26 (+0.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners56.99%
Inst Owner ChangeN/A
Ins Owners2.11%
Ins Owner ChangeN/A
Market Cap3.65B
Revenue(TTM)10.28B
Net Income(TTM)523.00M
Analysts79.09
Price Target110.29 (81.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.86% |
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)-6.69%
PT rev (3m)-9.94%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.2%
EPS NY rev (3m)-2.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.99 | ||
| Fwd PE | 4.34 | ||
| P/S | 0.35 | ||
| P/FCF | 2.64 | ||
| P/OCF | 2.24 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.21 |
EPS(TTM)8.71
EY14.3%
EPS(NY)14.03
Fwd EY23.04%
FCF(TTM)23.08
FCFY37.89%
OCF(TTM)27.23
OCFY44.69%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.39
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
WACC6.26%
ROIC/WACC1.38
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-17.25%
EPS Next 2Y-4.85%
EPS Next 3Y-1.14%
EPS Next 5Y3.84%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%0.79%
Revenue Next Year0.41%
Revenue Next 2Y0.91%
Revenue Next 3Y1.43%
Revenue Next 5Y2.04%
EBIT growth 1Y10.78%
EBIT growth 3Y8.5%
EBIT growth 5Y12.25%
EBIT Next Year39.61%
EBIT Next 3Y13.31%
EBIT Next 5Y12.01%
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%.