TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
Europe - EPA:TEP - FR0000051807 - Common Stock
63.98 EUR
+1.28 (+2.04%)
TEP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 74 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.
TEP had a positive operating cash flow in the past year.
TEP had positive earnings in each of the past 5 years.
TEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.32%, TEP perfoms like the industry average, outperforming 56.76% of the companies in the same industry.
The Return On Equity of TEP (13.24%) 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 11.84%.
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 has a Profit Margin of 5.09%. This is in the better half of the industry: TEP outperforms 66.22% 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 78.38% 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.
The number of shares outstanding for TEP has been reduced compared to 1 year ago.
The number of shares outstanding for TEP has been increased compared to 5 years ago.
The debt/assets ratio for TEP has been reduced compared to a year ago.
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 worse Altman-Z score (1.89) than 64.86% 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 of 4.14. This is comparable to the rest of the industry: TEP outperforms 48.65% of its industry peers.
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 68.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.53
WACC5.68%
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: 60.81% of the companies in the same industry are doing better.
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 (1.10) which is in line with 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.
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.
TEP shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.19%.
TEP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.93% yearly.
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 5.47% yearly.
The Revenue is expected to grow by 2.63% on average over the next years.
EPS Next Y-16.47%
EPS Next 2Y-3.93%
EPS Next 3Y-0.35%
EPS Next 5Y5.47%
Revenue Next Year1.04%
Revenue Next 2Y1.43%
Revenue Next 3Y1.79%
Revenue Next 5Y2.63%
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.
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
Based on the Price/Earnings ratio of 7.35, the valuation of TEP can be described as very cheap.
TEP's Price/Earnings ratio is rather cheap when compared to the industry. TEP is cheaper than 97.30% of the companies in the same industry.
TEP is valuated cheaply when we compare the Price/Earnings ratio to 27.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.47, the valuation of TEP can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 98.65% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.85. TEP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 4.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TEP is valued cheaply inside the industry as 89.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TEP is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.77 | ||
| EV/EBITDA | 4.28 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y-3.93%
EPS Next 3Y-0.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.59%, TEP is a good candidate for dividend investing.
In the last 3 months the price of TEP has falen by -25.93%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.93, TEP pays a better dividend. On top of this TEP pays more dividend than 90.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, TEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
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.
TEP's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP47.42%
EPS Next 2Y-3.93%
EPS Next 3Y-0.35%
EPA:TEP (10/16/2025, 7:00:00 PM)
63.98
+1.28 (+2.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners58.68%
Inst Owner ChangeN/A
Ins Owners2.17%
Ins Owner ChangeN/A
Market Cap3.83B
Analysts78.18
Price Target119.79 (87.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.59% |
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)-2.19%
PT rev (3m)-12.73%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.43%
EPS NY rev (3m)-11.83%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-2.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 4.47 | ||
| P/S | 0.37 | ||
| P/FCF | 2.77 | ||
| P/OCF | 2.35 | ||
| P/B | 0.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.28 |
EPS(TTM)8.71
EY13.61%
EPS(NY)14.3
Fwd EY22.36%
FCF(TTM)23.08
FCFY36.08%
OCF(TTM)27.23
OCFY42.55%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.46
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
WACC5.68%
ROIC/WACC1.53
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-16.47%
EPS Next 2Y-3.93%
EPS Next 3Y-0.35%
EPS Next 5Y5.47%
Revenue 1Y (TTM)23.19%
Revenue growth 3Y13.05%
Revenue growth 5Y13.93%
Sales Q2Q%0.79%
Revenue Next Year1.04%
Revenue Next 2Y1.43%
Revenue Next 3Y1.79%
Revenue Next 5Y2.63%
EBIT growth 1Y10.78%
EBIT growth 3Y8.5%
EBIT growth 5Y12.25%
EBIT Next Year42.04%
EBIT Next 3Y14.38%
EBIT Next 5Y13.02%
FCF growth 1Y36.97%
FCF growth 3Y20.59%
FCF growth 5Y22.88%
OCF growth 1Y28.55%
OCF growth 3Y16.69%
OCF growth 5Y17.17%