TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
EPA:TEP • FR0000051807
52 EUR
+1.1 (+2.16%)
Last: Feb 20, 2026, 07:00 PM
Taking everything into account, TEP scores 5 out of 10 in our fundamental rating. TEP was compared to 71 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. TEP scores decently on growth, while it is valued quite cheap. This could make an interesting 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 (4.32%) which is in line with its industry peers.
- TEP has a Return On Equity (13.24%) which is comparable to the rest of the industry.
- TEP has a Return On Invested Capital (8.66%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TEP is below the industry average of 11.09%.
- 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 61.97% of the companies in the same industry.
- In the last couple of years the Profit Margin of TEP has declined.
- TEP's Operating Margin of 10.80% is fine compared to the rest of the industry. TEP outperforms 77.46% 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.
- 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
- TEP has an Altman-Z score of 1.84. 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's Altman-Z score of 1.84 is on the low side compared to the rest of the industry. TEP is outperformed by 69.01% 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's Debt to FCF ratio of 4.14 is in line compared to the rest of the industry. TEP outperforms 50.70% of its industry peers.
- TEP has a Debt/Equity ratio of 1.00. This is a neutral value indicating TEP is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.00, TEP is doing worse than 61.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.39
WACC6.22%
2.3 Liquidity
- A Current Ratio of 1.10 indicates that TEP should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.10, TEP is not doing good in the industry: 60.56% of the companies in the same industry are doing better.
- A Quick Ratio of 1.10 indicates that TEP should not have too much problems paying its short term obligations.
- TEP has a Quick ratio (1.10) which 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.
- 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
- TEP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.84% yearly.
- 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-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
- 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
- With a Price/Earnings ratio of 5.97, the valuation of TEP can be described as very cheap.
- Based on the Price/Earnings ratio, TEP is valued cheaply inside the industry as 98.59% of the companies are valued more expensively.
- TEP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.99.
- A Price/Forward Earnings ratio of 3.80 indicates a rather cheap valuation of TEP.
- Based on the Price/Forward Earnings ratio, TEP is valued cheaper than 98.59% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, TEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 3.8 |
4.2 Price Multiples
- 92.96% of the companies in the same industry are more expensive than TEP, based on the Enterprise Value to EBITDA ratio.
- 98.59% 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 | 2.25 | ||
| EV/EBITDA | 3.9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
- TEP has a Yearly Dividend Yield of 8.32%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.65, TEP pays a better dividend. On top of this TEP pays more dividend than 95.77% 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 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.32% |
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%
EPA:TEP (2/20/2026, 7:00:00 PM)
52
+1.1 (+2.16%)
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 Cap3.11B
Revenue(TTM)10.28B
Net Income(TTM)523.00M
Analysts76.36
Price Target103.72 (99.46%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.32% |
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)-5.95%
PT rev (3m)-12.24%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.84%
EPS NY rev (3m)-2.52%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.97 | ||
| Fwd PE | 3.8 | ||
| P/S | 0.3 | ||
| P/FCF | 2.25 | ||
| P/OCF | 1.91 | ||
| P/B | 0.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.9 |
EPS(TTM)8.71
EY16.75%
EPS(NY)13.7
Fwd EY26.34%
FCF(TTM)23.08
FCFY44.39%
OCF(TTM)27.23
OCFY52.36%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.18
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 | 1.84 |
F-Score6
WACC6.22%
ROIC/WACC1.39
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-19.17%
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
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 -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%.