Teleperformance (TLPFY) AI Stock Analysis

• Market Cap: $6.00B
• Dividend Yield: 9.22%
• Average Volume (3M): 454.00
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.08
• Revenue Growth: 23.25%
• EPS Growth: -14.69%
• Country: US
• Employees: 446,052
• Sector: Industrials
• Sector Strength: 89
• Industry: Specialty Business Services
• EPS (TTM): 3.26
• Shares Outstanding: 119,748,730
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 454
• PEG Ratio: -0.58
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.14
• 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: $53.00
• Price Target Upside: 5.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: $58.00 ▲(15.51%Upside)

Teleperformance's strong financial performance and positive earnings call are the most significant factors driving the score, supported by a solid valuation. The company's strategic initiatives and stable technical indicators further enhance its attractiveness, despite some challenges in profitability margins and external market conditions.

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 long-term contracts with clients in various industries who outsource their customer service operations. The company charges fees for its customer experience management services, which may be structured based on the volume of interactions, the level of complexity, or the specific solutions provided. Additionally, Teleperformance benefits from strategic partnerships with leading technology providers, enhancing its service offerings with innovative solutions and tools. The company's global presence and ability to scale operations allow it to cater to both large multinational corporations and smaller businesses, contributing significantly to its earnings.

Teleperformance Financial Statement Overview

Summary

Teleperformance demonstrates strong financial performance with substantial revenue growth, a solid cash flow position, and balanced leverage. However, a slight decrease in net profit margin indicates some pressure on profitability, which prevents a perfect score.

Income Statement

Teleperformance demonstrates strong revenue growth with a 23.2% increase from the previous year, supported by a solid gross profit margin of 32.6% and an EBIT margin of 10.5% in 2024. However, the net profit margin has slightly decreased to 5.1%, indicating some pressure on profitability. Overall, the income statement reflects a robust growth trajectory with some room for improvement in net profitability.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 1.08, suggesting a balanced use of leverage. Return on Equity (ROE) stands at 11.5%, which is commendable, though there is room for enhancing shareholder returns. The equity ratio of 37.7% indicates a stable equity base relative to total assets, providing a solid foundation for financial stability.

Cash Flow

Teleperformance shows strong cash flow generation with a free cash flow growth rate of 39.6% over the past year. The operating cash flow to net income ratio of 3.47 highlights efficient cash earnings conversion, while the free cash flow to net income ratio of 3.05 underscores robust cash flow relative to profits. These metrics reflect a healthy cash position and effective capital management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.28B	8.35B	8.15B	7.12B	5.73B
Gross Profit	3.35B	2.60B	1.81B	1.50B	1.13B
EBITDA	1.91B	1.63B	1.64B	1.38B	1.05B
Net Income	523.00M	602.00M	643.00M	557.00M	324.00M
Balance Sheet
Total Assets	12.07B	11.75B	8.86B	8.35B	7.02B
Cash, Cash Equivalents and Short-Term Investments	1.10B	926.00M	846.00M	837.00M	1.05B
Total Debt	4.91B	5.43B	3.42B	3.50B	3.27B
Total Liabilities	7.52B	7.52B	5.19B	5.19B	4.62B
Stockholders Equity	4.56B	4.23B	3.67B	3.16B	2.41B
Cash Flow
Free Cash Flow	1.59B	1.14B	947.00M	876.00M	694.00M
Operating Cash Flow	1.81B	1.38B	1.25B	1.11B	952.00M
Investing Cash Flow	-221.00M	-2.59B	-602.00M	-1.16B	-254.00M
Financing Cash Flow	-1.40B	1.41B	-666.00M	-140.00M	-123.00M

Teleperformance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLPFY, the sentiment is Positive. The current price of 50.21 is above the 20-day moving average (MA) of 48.83, below the 50-day MA of 50.58, and above the 200-day MA of 48.31, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 50.77 is Neutral, neither overbought nor oversold. The STOCH value of 18.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TLPFY.

Teleperformance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLPFY	80 Outperform	$6.00B	10.60	12.04%	9.22%	23.25%	-14.69%
MMS	78 Outperform	$4.00B	14.12	17.36%	1.69%	5.29%	31.95%
CBZ	76 Outperform	$4.06B	50.81	6.25%	―	32.27%	-40.50%
ABM	75 Outperform	$2.97B	38.20	4.30%	2.22%	3.52%	-67.27%
ARMK	71 Outperform	$11.35B	33.32	11.77%	0.97%	-3.47%	-45.03%
Sector *	65 Neutral	$10.94B	15.63	5.18%	2.37%	3.14%	-27.13%
UNF	61 Neutral	$3.13B	21.54	7.15%	0.80%	4.18%	18.93%