Teleperformance (TLPFY) AI Stock Analysis

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Teleperformance

(OTC:TLPFY)

Rating:67Neutral

Price Target:

$46.00

▲(23.19% Upside)

Teleperformance's overall score reflects strong financial performance and attractive valuation, tempered by bearish technical indicators and a mixed earnings outlook. The company's robust cash flow and strategic initiatives are positive, but challenges in specialized services and FX impacts pose risks.

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

Market Cap

$4.52B

Dividend Yield6.61%

Average Volume (3M)1.89K

Price to Earnings (P/E)8.6

Beta (1Y)1.22

Revenue Growth9.69%

EPS Growth-22.10%

CountryUS

Employees446,052

SectorIndustrials

Sector Strength75

IndustrySpecialty Business Services

Share Statistics

EPS (TTM)2.42

Shares Outstanding119,748,730

10 Day Avg. Volume1,759

30 Day Avg. Volume1,890

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.43

Enterprise Value/Revenue1.07

Enterprise Value/Gross Profit3.28

Enterprise Value/Ebitda5.77

Forecast

1Y Price Target

$46.00

Price Target Upside23.19% Upside

Rating ConsensusHold

Number of Analyst Covering1

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 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: |

Next Earnings Date:Feb 19, 2026

Earnings Call Sentiment Neutral

The earnings call reflects a mixed performance for the company. There were notable achievements in core services growth, strategic initiatives, and client retention. However, these positives were offset by significant challenges in specialized services, FX impacts, and cash flow concerns, leading to a cautious outlook for the remainder of the year.

Q2-2025 Updates

Positive Updates

Strong Core Services Growth

Core services demonstrated strong growth of almost 3% like-for-like, with particular strength in the EMEA and APAC regions, where revenue like-for-like growth was nearly 5%. Quarter-over-quarter growth momentum in core services was 3.5% in Q2 versus 2.3% in Q1.

Improved Client Retention

The company improved client retention and ramped up new businesses globally, particularly in EMEA and APAC, which has been a strong asset for the business over the last 6 months.

EBITDA Margin Stability

The EBITDA margin remained stable at 13.9% on a constant FX basis, despite significant FX headwinds.

Strategic Initiatives and Wins

The company launched its Future Forward strategy, focusing on AI and human collaboration. Significant wins included a large AI deployment deal with a global logistics player and new contracts with a large U.S. financial service provider and in the healthcare segment.

Successful Integration and Expansion

The acquisition of ZP was completed successfully, performing in line with initial plans. Integration of Majorel and advancements in specialized services are progressing well.

Negative Updates

Specialized Services Headwinds

Specialized services faced significant challenges, with a like-for-like contraction of -7% excluding the nonrenewal of a significant visa application, resulting in nearly -12% shrinkage in Q2.

FX Impact on Financials

The strengthening of the euro against major currencies led to a decline in reported EBITDA margin by 30 basis points.

Challenges in the U.S. Market

The U.S. environment softened volumes for LanguageLine, impacting overall growth, with low single-digit growth expected for the division.

Front-Loaded Cash Outflows

Temporary cash flow challenges were noted, including lower reimbursement of VAT credits and increased tax expenses, leading to front-loaded outflows in H1 2025.

Company Guidance

During the TP 2025 First Half Results Conference Call, the company provided updated guidance for the fiscal year 2025 amidst both growth and challenges. The core services segment demonstrated notable growth, with a like-for-like increase of nearly 3% and a remarkable 5.7% rise in the EMEA and APAC regions during Q2. However, specialized services faced headwinds, with a like-for-like contraction of 7% excluding the impact of a significant visa application nonrenewal. This segment's growth further decelerated to nearly -12% in Q2, influenced by a challenging U.S. environment. Despite these challenges, the overall like-for-like revenue growth was 1.5%, leading to revenues exceeding EUR 5.1 billion. The EBITDA margin maintained at 13.9% on a constant FX basis, though reported margins declined by 30 basis points due to currency fluctuations. Looking ahead, the company expects revenue growth at the lower end of its guidance range and an EBITDA margin between 15% and 15.1% at constant exchange rates, alongside a sustainable net free cash flow of approximately EUR 1 billion before nonrecurring items.

Teleperformance Financial Statement Overview

Summary

Teleperformance exhibits solid financial performance with strong revenue and free cash flow growth. The company maintains stable leverage and effective cash flow management, although there is a slight decrease in net profit margin that warrants attention.

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 Price37.34

Price Trends

50DMA

45.49

Negative

100DMA

48.14

Negative

200DMA

47.22

Negative

Market Momentum

MACD

-1.99

Positive

RSI

27.44

Positive

STOCH

0.05

Positive

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 37.34 is below the 20-day moving average (MA) of 40.66, below the 50-day MA of 45.49, and below the 200-day MA of 47.22, indicating a bearish trend. The MACD of -1.99 indicates Positive momentum. The RSI at 27.44 is Positive, neither overbought nor oversold. The STOCH value of 0.05 is Positive, 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	76 Outperform	$4.95B	16.48	17.61%	1.36%	3.40%	13.75%
ABM	75 Outperform	$3.06B	39.03	4.30%	2.09%	3.52%	-67.27%
UNF	75 Outperform	$3.17B	21.60	7.15%	0.78%	4.18%	18.93%
TLPFY	67 Neutral	$4.52B	8.56	11.38%	6.61%	9.69%	-22.10%
ARMK	67 Neutral	$10.28B	28.68	12.00%	1.08%	-0.06%	3.83%
CBZ	65 Neutral	$3.48B	36.92	7.84%	―	46.49%	-25.62%
Sector *	64 Neutral	$10.66B	15.60	8.14%	2.00%	2.79%	-14.82%

* Industrials Sector Average

Performance Comparison

TLPFY

Teleperformance

37.34

-15.70

-29.60%

ABM

ABM Industries

48.72

-6.14

-11.19%

CBZ

CBIZ

60.38

-12.35

-16.98%

MMS

Maximus

88.55

0.22

0.25%

UNF

UniFirst

175.28

-9.25

-5.01%

ARMK

ARAMARK Holdings

38.95

3.22

9.01%

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 19, 2025