TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
Europe - EPA:TEP - FR0000051807 - Common Stock
62.98 EUR
-0.08 (-0.13%)
Taking everything into account, TEP scores 5 out of 10 in our fundamental rating. TEP was compared to 69 industry peers in the IT Services industry. TEP has an average financial health and profitability rating. TEP is valued quite cheap, while showing a decent growth score. This is a good combination! TEP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TEP had positive earnings in the past year.
TEP had a positive operating cash flow in the past year.
In the past 5 years TEP has always been profitable.
TEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.32%, TEP is in line with its industry, outperforming 52.17% of the companies in the same industry.
The Return On Equity of TEP (13.24%) is comparable to the rest of the industry.
TEP's Return On Invested Capital of 8.66% is in line compared to the rest of the industry. TEP outperforms 50.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TEP is below the industry average of 11.46%.
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 66.67% of the companies in the same industry.
TEP's Profit Margin has declined in the last couple of years.
The Operating Margin of TEP (10.80%) is better than 79.71% 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
TEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TEP has been reduced compared to 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 1.89 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 1.89. This is in the lower half of the industry: TEP underperforms 62.32% 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 49.28% of the companies in the same industry.
TEP has a Debt/Equity ratio of 1.00. This is a neutral value indicating TEP is somewhat dependend on debt financing.
TEP has a Debt to Equity ratio of 1.00. This is in the lower half of the industry: TEP underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.06
WACC8.16%
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 of 1.10. This is in the lower half of the industry: TEP underperforms 65.22% of 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 of 1.10. This is comparable to the rest of the industry: TEP outperforms 40.58% of 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.
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%-13.19%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%0.79%
3.2 Future
The Earnings Per Share is expected to grow by 5.27% on average over the next years.
The Revenue is expected to grow by 2.44% on average over the next years.
EPS Next Y-15.27%
EPS Next 2Y-3.15%
EPS Next 3Y0.22%
EPS Next 5Y5.27%
Revenue Next Year1.12%
Revenue Next 2Y1.5%
Revenue Next 3Y1.87%
Revenue Next 5Y2.44%
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.
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 7.23, which indicates a rather cheap valuation of TEP.
95.65% of the companies in the same industry are more expensive than TEP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.27, TEP is valued rather cheaply.
With a Price/Forward Earnings ratio of 4.33, the valuation of TEP can be described as very cheap.
95.65% of the companies in the same industry are more expensive than TEP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, TEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 4.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEP is valued cheaper than 86.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TEP is valued cheaper than 97.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.73 | ||
| EV/EBITDA | 4.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.43
EPS Next 2Y-3.15%
EPS Next 3Y0.22%
5. Dividend
5.1 Amount
TEP has a Yearly Dividend Yield of 6.60%, which is a nice return.
Compared to an average industry Dividend Yield of 7.73, TEP pays a better dividend. On top of this TEP pays more dividend than 91.30% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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-3.15%
EPS Next 3Y0.22%
EPA:TEP (9/15/2025, 7:00:00 PM)
62.98
-0.08 (-0.13%)
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 Cap3.77B
Analysts78.18
Price Target122.46 (94.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.6% |
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)-6.16%
PT rev (3m)-12.8%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-10.56%
EPS NY rev (3m)-10.56%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.46%
Revenue NY rev (3m)-2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 4.33 | ||
| P/S | 0.37 | ||
| P/FCF | 2.73 | ||
| P/OCF | 2.31 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.29 |
EPS(TTM)8.71
EY13.83%
EPS(NY)14.54
Fwd EY23.09%
FCF(TTM)23.08
FCFY36.65%
OCF(TTM)27.23
OCFY43.23%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.43
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%
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 | 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 | 1.89 |
F-Score6
WACC8.16%
ROIC/WACC1.06
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-15.27%
EPS Next 2Y-3.15%
EPS Next 3Y0.22%
EPS Next 5Y5.27%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%0.79%
Revenue Next Year1.12%
Revenue Next 2Y1.5%
Revenue Next 3Y1.87%
Revenue Next 5Y2.44%
EBIT growth 1Y10.78%
EBIT growth 3Y8.5%
EBIT growth 5Y12.25%
EBIT Next Year47.16%
EBIT Next 3Y16.31%
EBIT Next 5Y12.81%
FCF growth 1Y36.97%
FCF growth 3Y20.59%
FCF growth 5Y22.88%
OCF growth 1Y28.55%
OCF growth 3Y16.69%
OCF growth 5Y17.17%