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Teleperformance SE (FR:TEP)
:TEP
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Teleperformance (TEP) AI Stock Analysis

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FR:TEP

Teleperformance

(LSE:TEP)

Rating:72Outperform
Price Target:
€76.00
▲(16.14% Upside)
Teleperformance's strong financial performance and attractive valuation are offset by bearish technical indicators. The stock's undervaluation and high dividend yield present a compelling case for income-seeking investors, though caution is advised due to technical weakness.
Positive Factors
Leadership Transition
The appointment of Teleperformance’s largest shareholder as Chairman and the return of Thomas Mackenbrock as number two may speed up the CEO transition and improve alignment of interests.
Leverage and Shareholder Returns
Leverage will fall below 2x, driving optionality for shareholder returns.
Sales Growth
The sequential improvement in like-for-like sales growth could reassure the market and support profitable growth and deleveraging.
Negative Factors
Valuation Concerns
Valuation is very modest with a 4.5x P/E and 20% FCF yield.

Teleperformance (TEP) vs. iShares MSCI France ETF (EWQ)

Teleperformance Business Overview & Revenue Model

Company DescriptionTeleperformance 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 MoneyTeleperformance generates revenue primarily through its comprehensive suite of customer experience management services. The company operates on a business-to-business model, contracting with organizations across multiple industries to manage customer interactions via phone, email, chat, social media, and other digital channels. Revenue streams include fees for customer service operations, technical support, back-office processing services, and digital transformation solutions. Key partnerships with large enterprises and the ability to scale operations globally also contribute to its financial performance. Additionally, Teleperformance invests in technology and innovation to enhance service delivery, thereby maintaining competitive pricing and value for its clients.

Teleperformance Financial Statement Overview

Summary
Teleperformance shows robust revenue growth and efficient operations, with strong EBIT and EBITDA margins indicating operational profitability. Despite rising net income fluctuations and increasing liabilities, the company maintains a stable equity base and strong cash flow generation capabilities.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.28B8.35B8.15B7.12B5.73B
Gross Profit3.35B2.60B1.81B1.50B1.13B
EBITDA1.93B1.61B1.64B1.38B1.05B
Net Income523.00M592.00M643.00M557.00M324.00M
Balance Sheet
Total Assets12.07B12.07B8.86B8.35B7.02B
Cash, Cash Equivalents and Short-Term Investments1.10B882.00M846.00M837.00M1.05B
Total Debt4.91B5.43B3.42B3.50B3.27B
Total Liabilities7.52B7.84B5.19B5.19B4.62B
Stockholders Equity4.56B4.22B3.67B3.16B2.41B
Cash Flow
Free Cash Flow1.59B1.14B947.00M876.00M694.00M
Operating Cash Flow1.81B1.38B1.25B1.11B952.00M
Investing Cash Flow-221.00M-2.59B-602.00M-1.16B-254.00M
Financing Cash Flow-1.40B1.41B-666.00M-140.00M-123.00M

Teleperformance Technical Analysis

Technical Analysis Sentiment
Negative
Last Price65.44
Price Trends
50DMA
85.81
Negative
100DMA
86.97
Negative
200DMA
87.13
Negative
Market Momentum
MACD
-2.59
Positive
RSI
22.39
Positive
STOCH
9.12
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 65.44 is below the 20-day moving average (MA) of 84.87, below the 50-day MA of 85.81, and below the 200-day MA of 87.13, indicating a bearish trend. The MACD of -2.59 indicates Positive momentum. The RSI at 22.39 is Positive, neither overbought nor oversold. The STOCH value of 9.12 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
€4.07B8.3811.73%6.17%9.08%-22.55%
63
Neutral
€8.32B5.1317.88%7.24%2.91%-161.35%
$6.64B16.3710.25%1.76%
€883.88M10.4719.49%2.96%
€2.82B52.7610.24%
€7.63B11.2816.07%17.02%
72
Outperform
€3.61B15.38
2.02%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:TEP
Teleperformance
65.44
-31.40
-32.42%
ELSSF
Elis SA
28.01
5.87
26.51%
GB:0IX0
GL EVENTS
32.30
14.27
79.15%
GB:0QAG
ID LOGISTICS
438.00
15.50
3.67%
GB:0J3F
Sodexo SA
52.05
-24.19
-31.73%
FR:PLX
PLUXEE N.V.
17.38
-1.88
-9.76%
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.Date of analysis: Aug 02, 2025