TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:TEP - FR0000051807 - Common Stock
59.48 EUR
-0.02 (-0.03%)
Taking everything into account, TEP scores 5 out of 10 in our fundamental rating. TEP was compared to 76 industry peers in the IT Services industry. TEP has only an average score on both its financial health and profitability. 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.
- In the past year TEP had a positive cash flow from operations.
- 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
- TEP has a Return On Assets of 4.32%. This is comparable to the rest of the industry: TEP outperforms 50.00% of its industry peers.
- TEP has a Return On Equity (13.24%) which 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 55.26% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TEP is significantly below the industry average of 25.87%.
- 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
- TEP's Profit Margin of 5.09% is fine compared to the rest of the industry. TEP outperforms 61.84% of its industry peers.
- In the last couple of years the Profit Margin of TEP has declined.
- The Operating Margin of TEP (10.80%) is better than 76.32% 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.
- 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
- An Altman-Z score of 1.88 indicates that TEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of TEP (1.88) is worse than 67.11% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 4.14, TEP is in line with its industry, outperforming 51.32% 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's Debt to Equity ratio of 1.00 is on the low side compared to the rest of the industry. TEP is outperformed by 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.88 |
ROIC/WACC1.37
WACC6.31%
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 63.16% 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.
- Looking at the Quick ratio, with a value of 1.10, TEP is in line with its industry, outperforming 42.11% of the companies in the same 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.
- 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.
- 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
- The Earnings Per Share is expected to grow by 3.84% on average over the next years.
- 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-17.66%
EPS Next 2Y-5.02%
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
- 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.
- 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
- A Price/Earnings ratio of 6.83 indicates a rather cheap valuation of TEP.
- Based on the Price/Earnings ratio, TEP is valued cheaply inside the industry as 97.37% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.33, TEP is valued rather cheaply.
- TEP is valuated cheaply with a Price/Forward Earnings ratio of 4.25.
- Based on the Price/Forward Earnings ratio, TEP is valued cheaply inside the industry as 96.05% of the companies are valued more expensively.
- TEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 4.25 |
4.2 Price Multiples
- TEP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TEP is cheaper than 89.47% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, TEP is valued cheaply inside the industry as 98.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.58 | ||
| EV/EBITDA | 4.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.35
EPS Next 2Y-5.02%
EPS Next 3Y-1.14%
5. Dividend
5.1 Amount
- TEP has a Yearly Dividend Yield of 6.68%, which is a nice return.
- TEP's Dividend Yield is rather good when compared to the industry average which is at 2.26. TEP pays more dividend than 92.11% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, TEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
5.2 History
- The dividend of TEP is nicely growing with an annual growth rate of 15.06%!
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.
- 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-5.02%
EPS Next 3Y-1.14%
EPA:TEP (1/15/2026, 5:36:15 PM)
59.48
-0.02 (-0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-05 2025-11-05
Earnings (Next)02-26 2026-02-26/amc
Inst Owners55.9%
Inst Owner ChangeN/A
Ins Owners2.11%
Ins Owner ChangeN/A
Market Cap3.56B
Revenue(TTM)10.28B
Net Income(TTM)523.00M
Analysts78.1
Price Target110.29 (85.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.68% |
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)0%
PT rev (3m)-7.93%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-1.42%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 4.25 | ||
| P/S | 0.35 | ||
| P/FCF | 2.58 | ||
| P/OCF | 2.18 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.18 |
EPS(TTM)8.71
EY14.64%
EPS(NY)13.98
Fwd EY23.51%
FCF(TTM)23.08
FCFY38.81%
OCF(TTM)27.23
OCFY45.77%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.35
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
WACC6.31%
ROIC/WACC1.37
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-17.66%
EPS Next 2Y-5.02%
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.
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 5 / 10.
What is the earnings growth outlook for TELEPERFORMANCE?
The Earnings per Share (EPS) of TELEPERFORMANCE (TEP.PA) is expected to decline by -17.66% 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%.