Teleperformance (TLPFY) AI Stock Analysis

• Market Cap: $5.74B
• Dividend Yield: 4.95%
• Average Volume (3M): 1.57K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 1.11
• Revenue Growth: 23.25%
• EPS Growth: -14.69%
• Country: US
• Employees: 446,052
• Sector: Industrials
• Sector Strength: 87
• Industry: Specialty Business Services
• EPS (TTM): 3.26
• Shares Outstanding: 119,748,730
• 10 Day Avg. Volume: 1,025
• 30 Day Avg. Volume: 1,567
• PEG Ratio: 0.67
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $53.00 ▲(10.51%Upside)

Teleperformance's strong financial performance and positive earnings call highlight its growth potential. The company benefits from steady revenue and cash flow growth, while remaining attractively valued. Although technical indicators suggest some caution, the overall outlook is optimistic, supported by a robust financial structure and strategic initiatives.

Teleperformance Business Overview & Revenue Model

Company Description

Teleperformance (TLPFY) is a global leader in outsourced customer experience management and contact center services. The company operates across various sectors including telecommunications, healthcare, financial services, retail, and technology, providing a wide array of services such as customer care, technical support, customer acquisition, digital solutions, and back-office services. With a presence in numerous countries, Teleperformance leverages its extensive expertise and innovative technology to enhance customer interactions and business outcomes for its clients.

How the Company Makes Money

Teleperformance makes money primarily through outsourcing contracts with businesses that seek to enhance their customer service operations. The company earns revenue by providing comprehensive customer experience management services, which include customer support, technical assistance, and sales solutions. These services are typically offered via long-term contracts with clients across various industries. Additionally, Teleperformance benefits from strategic partnerships and investments in digital transformation solutions, which help drive operational efficiencies and improve service offerings. The company's global footprint and diverse client base also contribute significantly to its revenue generation, allowing it to capitalize on economies of scale and expand its service portfolio.

Teleperformance Financial Statement Overview

Summary

Teleperformance exhibits strong financial performance with robust revenue and free cash flow growth, supported by stable leverage and effective cash management. However, a slight decrease in net profit margin indicates some pressure on profitability.

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: Negative
• Last Price: 47.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 47.96 is below the 20-day moving average (MA) of 50.11, below the 50-day MA of 50.63, and below the 200-day MA of 48.50, indicating a bearish trend. The MACD of -1.30 indicates Positive momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 30.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TLPFY.

Teleperformance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNF	82 Outperform	$3.33B	23.16	7.17%	0.75%	5.04%	31.69%
MMS	80 Outperform	$3.94B	13.92	17.36%	1.68%	5.29%	31.95%
TLPFY	76 Outperform	$5.74B	10.12	12.04%	4.95%	23.25%	-14.69%
CBZ	71 Outperform	$3.87B	48.37	6.25%	―	32.27%	-40.50%
ARMK	71 Outperform	$11.03B	32.40	11.77%	1.00%	-3.47%	-45.03%
Sector *	65 Neutral	$10.56B	15.49	5.57%	1.96%	2.71%	-26.28%
ABM	61 Neutral	$2.89B	37.13	4.30%	2.29%	3.52%	-67.27%