Teleperformance (TLPFY) AI Stock Analysis

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Teleperformance

(OTC:TLPFY)

Rating:72Outperform

Price Target:

$44.00

▲(10.00% Upside)

Teleperformance's solid financial performance and attractive valuation are its strengths, supported by strong revenue and cash flow growth. However, bearish technical indicators and challenges highlighted in the earnings call, such as issues in specialized services and FX headwinds, weigh on the overall score.

Teleperformance (TLPFY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$4.91B

Dividend Yield6.17%

Average Volume (3M)562.00

Price to Earnings (P/E)9.3

Beta (1Y)1.23

Revenue Growth9.69%

EPS Growth-22.10%

CountryUS

Employees446,052

SectorIndustrials

Sector Strength84

IndustrySpecialty Business Services

Share Statistics

EPS (TTM)2.42

Shares Outstanding119,748,730

10 Day Avg. Volume1,219

30 Day Avg. Volume562

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.24

Enterprise Value/Revenue1.07

Enterprise Value/Gross Profit3.28

Enterprise Value/Ebitda5.77

Forecast

1Y Price Target

$44.00

Price Target Upside10.00% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Teleperformance Business Overview & Revenue Model

Company DescriptionTeleperformance (TLPFY) is a global leader in outsourced omnichannel customer experience management. The company operates in diverse sectors including telecommunications, healthcare, financial services, and technology, providing services such as customer care, technical support, and customer acquisition. Teleperformance leverages advanced technology solutions to deliver tailored customer interactions, ensuring high-quality service delivery across various communication channels such as phone, chat, email, and social media.

How the Company Makes MoneyTeleperformance 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 Earnings Call Summary

Earnings Call Date:Jul 31, 2025

(Q2-2025)

% Change Since: -18.57%|

Next Earnings Date:Feb 19, 2026

Earnings Call Sentiment Neutral

The earnings call highlights strong growth momentum in core services and strategic wins in AI integration. However, significant challenges in specialized services and FX headwinds, along with cash flow and North American market challenges, create a balanced outlook.

Q2-2025 Updates

Positive Updates

Core Services Growth

Core services demonstrated strong growth of almost 3% like-for-like, with EMEA APAC region showing like-for-like growth of almost 5%. There was an acceleration in Q2 with 3.5% growth compared to 2.3% in Q1.

EBITDA Margin Stability

On a constant FX basis, EBITDA margin remained stable at 13.9%, the same as in the first half of 2024, despite FX headwinds.

Strategic Wins and AI Integration

Successful expansion of TP.ai data services and strategic wins including large AI deployment contracts with global logistic players and financial service providers.

Improved Client Retention

Client retention improved in existing businesses, contributing to overall growth.

Negative Updates

Specialized Services Decline

Specialized services saw a decline of minus 7% on a like-for-like basis, excluding the impact of a nonrenewal in visa applications, and a further shrinkage by minus 12% in Q2.

FX Headwinds

A strong euro against major currencies resulted in a 30 basis point decline in reported EBITDA margin due to translation effects.

Challenges in North America

North America faced challenges with a decline in growth, affecting the overall performance of the Americas segment.

LanguageLine Services (LLS) Weakness

LLS faced demand challenges in the U.S. due to political and social conditions, impacting growth.

Cash Flow Challenges

Front-loaded outflows and increased tax and CapEx in H1 led to challenges in cash flow, although improvement is expected in H2.

Company Guidance

During the first half of 2025, TP reported mixed results with notable growth in core services and challenges in specialized services. The core services segment saw a like-for-like growth of nearly 3%, with the EMEA and APAC regions achieving almost 5% growth. Specifically, core services experienced a growth acceleration from 2.3% in Q1 to 3.5% in Q2. However, specialized services faced headwinds, contracting by 7% on a like-for-like basis, largely due to the nonrenewal of a significant visa application contract. Despite these challenges, TP's group revenue grew by 1.5% to over EUR 5.1 billion, maintaining an EBITDA margin of 13.9% on a constant FX basis. The company is updating its 2025 outlook, expecting revenue growth at the lower end of guidance and maintaining an EBITDA margin of 15% to 15.1% at constant currencies, alongside a sustainable net free cash flow before nonrecurring items of around EUR 1 billion.

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

Very Positive

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

Positive

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

Positive

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

Negative

Last Price40.00

Price Trends

50DMA

48.77

Negative

100DMA

49.30

Negative

200DMA

48.02

Negative

Market Momentum

MACD

-2.75

Positive

RSI

31.85

Neutral

STOCH

22.22

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLPFY, the sentiment is Negative. The current price of 40 is below the 20-day moving average (MA) of 46.67, below the 50-day MA of 48.77, and below the 200-day MA of 48.02, indicating a bearish trend. The MACD of -2.75 indicates Positive momentum. The RSI at 31.85 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TLPFY.

Teleperformance Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMS	81 Outperform	$4.59B	15.01	17.61%	1.45%	3.40%	13.75%
TLPFY	72 Outperform	$4.91B	9.28	11.38%	6.17%	9.69%	-22.10%
CBZ	72 Outperform	$3.41B	36.44	7.84%	―	46.49%	-25.62%
ABM	69 Neutral	$2.97B	38.22	4.30%	2.14%	3.52%	-67.27%
Sector *	64 Neutral	$10.66B	16.26	6.50%	2.14%	2.69%	-21.81%
ARMK	63 Neutral	$10.41B	29.31	12.00%	1.07%	-0.06%	3.83%
UNF	61 Neutral	$3.07B	21.14	7.15%	0.79%	4.18%	18.93%

* Industrials Sector Average

Performance Comparison

TLPFY

Teleperformance

40.00

-13.68

-25.48%

ABM

ABM Industries

47.57

-3.84

-7.47%

CBZ

CBIZ

61.79

-6.99

-10.16%

MMS

Maximus

82.65

-1.97

-2.33%

UNF

UniFirst

174.43

-6.09

-3.37%

ARMK

ARAMARK Holdings

39.11

4.54

13.13%

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