Teleperformance (TEP) AI Stock Analysis

• Market Cap: €3.27B
• Dividend Yield: 6.86%
• Average Volume (3M): 309.25K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 1.23
• Revenue Growth: 9.08%
• EPS Growth: -22.55%
• Country: FR
• Employees: 446,052
• Sector: General
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 4.19
• Shares Outstanding: 59,874,367
• 10 Day Avg. Volume: 228,213
• 30 Day Avg. Volume: 309,249
• PEG Ratio: -0.72
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 3.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €83.33
• Price Target Upside: 32.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €61.00 ▼(-3.33% Downside)

The score is driven primarily by strong financial performance (growth and cash generation) and attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technicals: the stock is in a downtrend and momentum indicators remain bearish, reducing the overall score.

Positive Factors

Revenue Growth

Sustained revenue growth over multiple years indicates expanding market share and scale in BPO services. This durable top-line expansion supports continued investment in technology and sales, improving bargaining power with clients and strengthening long-term contract renewals and retention.

Cash Generation

Consistent operating cash flow conversion and rising free cash flow provide durable financial flexibility. Strong cash generation funds capex, dividends, debt service and strategic investments in automation, reducing reliance on external financing over the medium term.

Market Position & Technology Partnerships

Long-term contracts and tech partnerships create recurring revenue and enhance service differentiation through AI and automation. This structural advantage supports client retention, upsell of digital solutions, and lowers marginal cost per interaction across 2-6 month horizons and beyond.

Negative Factors

Net Income and EPS Weakness

Declining net income and sharply negative EPS growth reflect margin pressure or non-operating hits that can persist. Lower profitability limits retained earnings available for reinvestment or debt reduction and may constrain strategic initiatives if earnings recovery is slow.

Rising Debt and Liabilities

An increased debt level and growing liabilities reduce financial flexibility and raise interest exposure. Over a multi-month horizon this can limit ability to invest in technology, pursue M&A, or withstand demand shocks, especially if cash flow volatility re-emerges.

Labor Intensity and Operational Complexity

A very large global workforce is core to BPO delivery but exposes Teleperformance to wage inflation, regulatory changes, and coordination risks across countries. Labor and operational complexity can compress margins and raise fixed cost sensitivity during demand slowdowns.

Teleperformance Business Overview & Revenue Model

Company Description

Teleperformance SE, together with its subsidiaries, provides outsourced customer and citizen experience management, and related services in France and internationally. The company operates in two segments, Core Services and Digital Integrated Business Services, and Specialized Services. It offers customer and citizen care; technical support; and customer acquisition services, as well as back-office solutions and integrated services, including social media content moderation services and data labeling for automation solutions; and knowledge services in the field of analytics solutions, automated systems, and artificial intelligence. The company also manages business processes, as well as provides digital platform, consulting, and data analysis services; and business process outsourcing services for government agencies. In addition, it offers online interpreting services; visa application management and consulate services for government departments; online healthcare navigation and advocacy services; and accounts receivable credit management services. The company serves automotive, energy and utilities, insurance, public sector, technology, travel and hospitality, and banking and financial services, as well as healthcare, media, retail and e-commerce, crypto, cargo, telecom, and video games industries. Teleperformance SE was incorporated in 1910 and is headquartered in Paris, France.

How the Company Makes Money

Teleperformance generates revenue primarily through its business process outsourcing (BPO) services. The company operates on a fee-for-service model, where clients pay for the services rendered based on the volume of interactions, hours worked, or specific projects completed. Key revenue streams include customer care services, technical support, and digital solutions, which encompass artificial intelligence and automation technologies. Additionally, Teleperformance benefits from long-term contracts with major corporations, providing a stable income source. Strategic partnerships with technology providers enhance its service offerings, enabling the company to deliver innovative solutions that attract new clients and retain existing ones, thus contributing positively to its earnings.

Teleperformance Financial Statement Overview

Summary

Strong multi-year revenue growth and solid operating profitability (EBIT/EBITDA margins) support the score. Cash generation is a key strength with rising operating and free cash flow. Offsetting factors include net income softness in 2024 and higher debt/liabilities that add balance-sheet risk.

Income Statement

Teleperformance has demonstrated substantial revenue growth from $5.36 billion in 2019 to $10.28 billion in 2024, indicating a robust growth trajectory. The gross profit margin has improved, reflecting efficient cost management. However, net income has seen fluctuation, with a decrease in 2024, impacting the net profit margin. The company maintains strong EBIT and EBITDA margins, showcasing operational profitability.

Balance Sheet

The balance sheet shows a stable equity base with stockholders' equity increasing from $2.57 billion in 2019 to $4.56 billion in 2024, indicating growing shareholder value. The debt-to-equity ratio remains moderate, but total debt has increased. The equity ratio is healthy, showing a balanced asset structure. However, rising liabilities could pose a risk if not managed carefully.

Cash Flow

Operating cash flow has consistently increased, demonstrating strong cash generation capabilities. Free cash flow is growing, with a significant increase in 2024. The operating cash flow to net income ratio is favorable, indicating effective conversion of income to cash. However, fluctuations in free cash flow growth rates suggest potential volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.32B	10.28B	8.35B	8.15B	7.12B	5.73B
Gross Profit	2.18B	3.35B	2.60B	1.81B	2.17B	1.76B
EBITDA	1.71B	1.93B	1.61B	1.63B	1.37B	1.04B
Net Income	481.00M	523.00M	592.00M	643.00M	557.00M	324.00M
Balance Sheet
Total Assets	12.10B	12.07B	12.07B	8.89B	8.35B	7.02B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.10B	882.00M	817.00M	837.00M	1.07B
Total Debt	5.71B	4.91B	5.43B	3.42B	3.50B	3.27B
Total Liabilities	8.14B	7.52B	7.84B	5.22B	5.19B	4.62B
Stockholders Equity	3.95B	4.56B	4.22B	3.67B	3.16B	2.41B
Cash Flow
Free Cash Flow	1.32B	1.59B	1.14B	947.00M	876.00M	694.00M
Operating Cash Flow	1.57B	1.81B	1.38B	1.29B	1.14B	989.00M
Investing Cash Flow	-731.00M	-221.00M	-2.59B	-602.00M	-1.16B	-253.00M
Financing Cash Flow	-437.00M	-1.40B	1.41B	-715.00M	-173.00M	-161.00M

Teleperformance Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:TEP, the sentiment is Negative. The current price of 63.1 is above the 20-day moving average (MA) of 58.79, above the 50-day MA of 59.43, and below the 200-day MA of 71.67, indicating a bearish trend. The MACD of -1.65 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 13.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:TEP.

Teleperformance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLO	76 Outperform	€939.30M	11.09	19.49%	3.03%	9.51%	26.07%
ELIS	76 Outperform	€5.70B	15.54	10.25%	1.88%	4.83%	52.47%
TEP	74 Outperform	€3.27B	6.72	11.73%	6.86%	9.08%	-22.55%
PLX	69 Neutral	€2.33B	8.25	―	2.91%	6.36%	48.97%
SW	61 Neutral	€6.31B	9.06	18.37%	6.20%	1.16%	314.94%
IDL	56 Neutral	€2.68B	46.37	11.18%	―	18.03%	3.43%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%