TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
EPA:TEP - Euronext Paris - Matif - FR0000051807 - Common Stock - Currency: EUR
TEP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 70 industry peers in the IT Services industry. TEP has only an average score on both its financial health and profitability. TEP may be a bit undervalued, certainly considering the very reasonable score on growth
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.
TEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TEP (4.33%) is comparable to the rest of the industry.
The Return On Equity of TEP (11.48%) is comparable to the rest of the industry.
TEP's Return On Invested Capital of 8.44% is in line compared to the rest of the industry. TEP outperforms 58.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 11.48% | ||
| ROIC | 8.44% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 5.09%, TEP is doing good in the industry, outperforming 65.33% of the companies in the same industry.
In the last couple of years the Profit Margin of TEP has declined.
TEP has a Operating Margin of 10.80%. This is amongst the best in the industry. TEP outperforms 81.33% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TEP is still creating some value.
TEP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
TEP has an Altman-Z score of 2.11. 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.
TEP has a Altman-Z score of 2.11. This is comparable to the rest of the industry: TEP outperforms 44.00% of its industry peers.
The Debt to FCF ratio of TEP is 3.11, which is a good value as it means it would take TEP, 3.11 years of fcf income to pay off all of its debts.
TEP's Debt to FCF ratio of 3.11 is fine compared to the rest of the industry. TEP outperforms 62.67% of its industry peers.
TEP has a Debt/Equity ratio of 0.79. This is a neutral value indicating TEP is somewhat dependend on debt financing.
TEP has a worse Debt to Equity ratio (0.79) than 61.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 2.11 |
ROIC/WACC1.2
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.12 indicates that TEP should not have too much problems paying its short term obligations.
TEP has a Current ratio (1.12) which is in line with its industry peers.
A Quick Ratio of 1.12 indicates that TEP should not have too much problems paying its short term obligations.
The Quick ratio of TEP (1.12) is comparable to the rest of the industry.
| 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 -14.50%.
TEP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.04% yearly.
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)-14.5%
EPS 3Y-2.37%
EPS 5Y5.04%
EPS Q2Q%-30.71%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%18.68%
3.2 Future
The Earnings Per Share is expected to grow by 8.76% on average over the next years. This is quite good.
Based on estimates for the next years, TEP will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
EPS Next Y9.37%
EPS Next 2Y9.02%
EPS Next 3Y8.76%
EPS Next 5YN/A
Revenue Next Year4.88%
Revenue Next 2Y4.18%
Revenue Next 3Y4.23%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 11.78 indicates a reasonable 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 86.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. TEP is valued rather cheaply when compared to this.
TEP is valuated cheaply with a Price/Forward Earnings ratio of 6.13.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 94.67% 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 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 6.13 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, TEP is valued cheaply inside the industry as 94.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.85 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.26
PEG (5Y)2.34
EPS Next 2Y9.02%
EPS Next 3Y8.76%
5. Dividend
5.1 Amount
TEP has a Yearly Dividend Yield of 3.90%. Purely for dividend investing, there may be better candidates out there.
TEP's Dividend Yield is a higher than the industry average which is at 4.29.
TEP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
On average, the dividend of TEP grows each year by 20.57%, which is quite nice.
Dividend Growth(5Y)20.57%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
TEP pays out 44.17% 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.
DP44.17%
EPS Next 2Y9.02%
EPS Next 3Y8.76%
EPA:TEP (3/7/2025, 7:00:00 PM)
102.6
-5.1 (-4.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners56.85%
Inst Owner ChangeN/A
Ins Owners2.17%
Ins Owner ChangeN/A
Market Cap6.14B
Analysts80
Price Target145.22 (41.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend3.31
Dividend Growth(5Y)20.57%
DP44.17%
Div Incr Years2
Div Non Decr Years3
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)-1.21%
PT rev (3m)-0.72%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.58%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 6.13 | ||
| P/S | 0.6 | ||
| P/FCF | 3.85 | ||
| P/OCF | 3.39 | ||
| P/B | 1.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)8.71
EY8.49%
EPS(NY)16.74
Fwd EY16.32%
FCF(TTM)26.62
FCFY25.95%
OCF(TTM)30.28
OCFY29.51%
SpS171.71
BVpS76.1
TBVpS-36.3
PEG (NY)1.26
PEG (5Y)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 11.48% | ||
| ROCE | 12.74% | ||
| ROIC | 8.44% | ||
| ROICexc | 9.7% | ||
| ROICexgc | 86.89% | ||
| OM | 10.8% | ||
| PM (TTM) | 5.09% | ||
| GM | N/A | ||
| FCFM | 15.51% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 2.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 304.78% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.11 |
F-Score6
WACC7.01%
ROIC/WACC1.2
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)2.86%
Cap/Sales(5y)3.27%
Profit Quality(3y)216.3%
Profit Quality(5y)207.54%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.5%
EPS 3Y-2.37%
EPS 5Y5.04%
EPS Q2Q%-30.71%
EPS Next Y9.37%
EPS Next 2Y9.02%
EPS Next 3Y8.76%
EPS Next 5YN/A
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%18.68%
Revenue Next Year4.88%
Revenue Next 2Y4.18%
Revenue Next 3Y4.23%
Revenue Next 5YN/A
EBIT growth 1Y9.36%
EBIT growth 3Y8.5%
EBIT growth 5Y12.25%
EBIT Next Year62.97%
EBIT Next 3Y24.91%
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%