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Teleperformance
(TEP)
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Rating:66Neutral
Price Target:
€60.00
▼(-4.91% Downside)
Action:Downgraded
Date:07/01/26
The score is driven primarily by solid cash generation and profitability, tempered by weakening near-term fundamentals (negative 2025 revenue growth, net margin compression) and higher leverage. Valuation is a major positive (low P/E and high dividend yield), while technical signals cannot be assessed due to missing indicators.
Positive Factors
Free Cash Flow Strength
Consistently strong free cash flow (€1.18B in 2025) provides durable funding for dividends, capex and debt reduction. For an outsourcing business with recurring contracts, persistent FCF underpins financial flexibility and the ability to invest in automation or strategic M&A without relying on equity raises.
Negative Factors
Negative Revenue Growth
A shift to negative revenue growth signals weakening end-client demand or contract volumes. If persistent, it erodes operating leverage and undermines margin stability, limiting the company’s ability to grow earnings organically and reducing the runway to rebuild top-line momentum.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistently strong free cash flow (€1.18B in 2025) provides durable funding for dividends, capex and debt reduction. For an outsourcing business with recurring contracts, persistent FCF underpins financial flexibility and the ability to invest in automation or strategic M&A without relying on equity raises.
Read all positive factors
Teleperformance (TEP) vs. iShares MSCI France ETF (EWQ)
Market Cap
€3.20B
Dividend Yield6.86%
Average Volume (3M)309.25K
Price to Earnings (P/E)6.5
Beta (1Y)0.78
Revenue Growth-0.69%
EPS Growth-3.19%
CountryFR
Employees446,716
SectorGeneral
Sector StrengthN/A
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)8.47
Shares Outstanding59,874,367
10 Day Avg. Volume228,213
30 Day Avg. Volume309,249
Financial Highlights & Ratios
PEG Ratio-2.21
Price to Book (P/B)0.89
Price to Sales (P/S)0.36
P/FCF Ratio3.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€72.75Price Target Upside15.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)13.31
Revenue Forecast (FY)€10.01B
Teleperformance Business Overview & Revenue Model
Company Description
Teleperformance SE, a company founded in 1910 and headquartered in Paris, France, operates globally as an outsourced provider of customer and citizen interaction management, along with associated services. The firm is structured into two main divi...
How the Company Makes Money
Teleperformance primarily makes money by providing outsourced services to clients under multi-month to multi-year contracts, generating recurring revenue from operating customer interactions and business processes on the client’s behalf. Its core ...
Teleperformance Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
54
Neutral
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.21B | 10.28B | 8.35B | 8.15B | 7.12B |
| Gross Profit | 1.20B | 3.35B | 2.60B | 1.81B | 2.17B |
| EBITDA | 1.89B | 1.93B | 1.61B | 1.63B | 1.37B |
| Net Income | 497.00M | 523.00M | 592.00M | 643.00M | 557.00M |
Balance Sheet | |||||
| Total Assets | 11.48B | 12.07B | 12.07B | 8.89B | 8.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.12B | 1.10B | 882.00M | 817.00M | 837.00M |
| Total Debt | 4.92B | 4.91B | 5.43B | 3.42B | 3.50B |
| Total Liabilities | 7.38B | 7.52B | 7.84B | 5.22B | 5.19B |
| Stockholders Equity | 4.10B | 4.56B | 4.22B | 3.67B | 3.16B |
Cash Flow | |||||
| Free Cash Flow | 1.18B | 1.59B | 1.14B | 947.00M | 876.00M |
| Operating Cash Flow | 1.43B | 1.81B | 1.38B | 1.29B | 1.14B |
| Investing Cash Flow | -737.00M | -221.00M | -2.59B | -602.00M | -1.16B |
| Financing Cash Flow | -648.00M | -1.40B | 1.41B | -715.00M | -173.00M |
Teleperformance Technical Analysis
Neutral
63.10
Price Trends
58.10
Negative
53.65
Negative
54.75
Negative
Market Momentum
-1.21
Negative
49.55
Neutral
85.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:TEP, the sentiment is Neutral. The current price of 63.1 is above the 20-day moving average (MA) of 52.17, above the 50-day MA of 58.10, and above the 200-day MA of 54.75, indicating a neutral trend. The MACD of -1.21 indicates Negative momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 85.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FR:TEP.
Teleperformance Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | €2.69B | 9.43 | ― | 2.91% | 4.39% | 26.03% | |
67 Neutral | €7.58B | 17.11 | 18.37% | 6.20% | -2.30% | -33.43% | |
66 Neutral | €3.20B | 6.52 | 11.73% | 6.86% | -0.69% | -3.19% | |
63 Neutral | €5.97B | 16.04 | 10.25% | 1.88% | 4.88% | 9.43% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
FR:TEP
Teleperformance
55.20
-25.88
-31.92%
FR:ELIS
Elis SA
25.18
1.38
5.82%
FR:SW
Sodexo SA
52.70
4.83
10.09%
FR:MLPHW
Phone Web SA
0.91
-0.01
-1.30%
FR:MLCMI
SOCIETE DE CONSEIL EN EXTERNALISATION ET EN MARKETING INTERNET
3.62
0.22
6.47%
FR:PLX
PLUXEE N.V.
13.39
-3.92
-22.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.