TELEPERFORMANCE (TEP.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:TEP • FR0000051807
53.34 EUR
+0.62 (+1.18%)
Last: Feb 4, 2026, 05:36 PM
We assign a fundamental rating of 5 out of 10 to TEP. TEP was compared to 74 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
- In the past year TEP was profitable.
- TEP had a positive operating cash flow in the past year.
- In the past 5 years TEP has always been profitable.
- In the past 5 years TEP always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.32%, TEP is in line with its industry, outperforming 50.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 13.24%, TEP is in line with its industry, outperforming 56.76% of the companies in the same industry.
- With a Return On Invested Capital value of 8.66%, TEP perfoms like the industry average, outperforming 54.05% of the companies in the same industry.
- TEP had an Average Return On Invested Capital over the past 3 years of 8.54%. This is significantly below the industry average of 26.58%.
- 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
- Looking at the Profit Margin, with a value of 5.09%, TEP is in the better half of the industry, outperforming 63.51% of the companies in the same industry.
- TEP's Profit Margin has declined in the last couple of years.
- TEP has a better Operating Margin (10.80%) than 77.03% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TEP is creating some value.
- Compared to 1 year ago, TEP has less shares outstanding
- TEP has more shares outstanding than it did 5 years ago.
- TEP has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.85 indicates that TEP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 1.85, TEP is not doing good in the industry: 66.22% of the companies in the same industry are doing better.
- 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.
- The Debt to FCF ratio of TEP (4.14) is comparable to the rest of the 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 62.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 4.14 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.38
WACC6.29%
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 has a Current ratio (1.10) which is comparable to the rest of the industry.
- 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 44.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- TEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.99%.
- 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!
- 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
- Based on estimates for the next years, TEP will show a small growth in Earnings Per Share. The EPS will grow by 3.84% on average per year.
- 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
- Based on the Price/Earnings ratio of 6.12, 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.
- When comparing the Price/Earnings ratio of TEP to the average of the S&P500 Index (28.18), we can say TEP is valued rather cheaply.
- The Price/Forward Earnings ratio is 3.89, which indicates a rather cheap valuation of TEP.
- Based on the Price/Forward Earnings ratio, TEP is valued cheaply inside the industry as 97.30% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of TEP to the average of the S&P500 Index (25.51), we can say TEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.12 | ||
| Fwd PE | 3.89 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TEP indicates a rather cheap valuation: TEP is cheaper than 93.24% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, TEP is valued cheaper than 98.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.31 | ||
| EV/EBITDA | 3.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.21
EPS Next 2Y-5.99%
EPS Next 3Y-1.77%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.90%, TEP is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.36, TEP pays a better dividend. On top of this TEP pays more dividend than 93.24% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, TEP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.9% |
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
- TEP pays out 47.42% of its income as dividend. 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 (2/4/2026, 5:36:15 PM)
53.34
+0.62 (+1.18%)
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 Cap3.19B
Revenue(TTM)10.28B
Net Income(TTM)523.00M
Analysts78.1
Price Target109.07 (104.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.9% |
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)-1.1%
PT rev (3m)-7.72%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.84%
EPS NY rev (3m)-3.23%
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 | 6.12 | ||
| Fwd PE | 3.89 | ||
| P/S | 0.31 | ||
| P/FCF | 2.31 | ||
| P/OCF | 1.96 | ||
| P/B | 0.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.96 |
EPS(TTM)8.71
EY16.33%
EPS(NY)13.7
Fwd EY25.68%
FCF(TTM)23.08
FCFY43.28%
OCF(TTM)27.23
OCFY51.04%
SpS171.71
BVpS65.99
TBVpS-43.26
PEG (NY)N/A
PEG (5Y)1.21
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 | 1.85 |
F-Score6
WACC6.29%
ROIC/WACC1.38
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%.