Teleperformance (TLPFY)
OTHER OTC:TLPFY
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Teleperformance
(OTC:TLPFY)
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Rating:62Neutral
Price Target:
$28.00
▼(-15.94% Downside)
Action:DowngradedDate:03/02/26
The score is held back mainly by weakening financial momentum (2025 revenue decline, pressured gross margin, higher leverage) and bearish technicals (below key moving averages with negative MACD). This is partially offset by very attractive valuation (low P/E and high dividend yield) and a cautiously constructive earnings outlook supported by strong historical cash generation and cost-savings initiatives, despite modest 2026 growth guidance and one-off costs.
Positive Factors
Strong free cash flow generation
Consistent, high free cash flow provides durable financial flexibility: supports dividends/buybacks, funds capex and AI investments, and cushions cyclical revenue pressure. Teleperformance’s strong cash conversion underpins capital allocation and long-term investment in automation and growth.
Negative Factors
Specialized services revenue loss
Loss of sizable specialized contracts and steep segment declines signal structural demand and retention challenges in higher‑margin services. Replacing lost revenue requires time and new wins; persistent contraction in specialized offerings can compress overall revenue mix and limit margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, high free cash flow provides durable financial flexibility: supports dividends/buybacks, funds capex and AI investments, and cushions cyclical revenue pressure. Teleperformance’s strong cash conversion underpins capital allocation and long-term investment in automation and growth.
Read all positive factors
Teleperformance (TLPFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.51B
Dividend Yield6.84%
Average Volume (3M)1.20K
Price to Earnings (P/E)7.6
Beta (1Y)0.86
Revenue Growth9.69%
EPS Growth-22.10%
CountryUS
Employees446,052
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)3.79
Shares Outstanding119,748,730
10 Day Avg. Volume0
30 Day Avg. Volume1,204
Financial Highlights & Ratios
PEG Ratio-1.07
Price to Book (P/B)0.88
Price to Sales (P/S)0.37
P/FCF Ratio3.19
Enterprise Value/Market Cap2.13
Enterprise Value/Revenue0.74
Enterprise Value/Gross Profit3.31
Enterprise Value/Ebitda4.26
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.96
Revenue Forecast (FY)$11.77B
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 Busi...
How the Company Makes Money
Teleperformance primarily makes money by providing business process outsourcing (BPO) and customer experience management services to corporate and public-sector clients under multi-month to multi-year service contracts. Revenue is generally genera...
Teleperformance Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presents a mixed but constructive picture: the company met its updated 2025 objectives, delivered strong cash generation (record H2 and EUR 901m FCF), stabilized leverage below 2x, advanced a large AI and efficiency program (>500 AI projects; >EUR 100m targeted run‑rate savings), and announced governance renewal and a dividend increase (+7%). Offsetting this, Specialized Services saw significant revenue declines (loss of major contracts ~EUR 140m), FX translation materially reduced reported results (c. EUR 362m impact), and management expects Q1 2026 to be softer with one‑time restructuring costs in 2026 and a lower FCF guidance (EUR 800–850m). Overall, the positives — delivery against targets, strong cash flow, clear transformation initiatives and a strengthened governance/strategy platform — outweigh the near‑term operational and FX headwinds, but investors should monitor Specialized Services, FX sensitivity and execution of the AI/efficiency programs.Positive Updates
Revenue and Like-for-Like Growth
Group net revenue of EUR 10.2 billion for FY2025 with like‑for‑like growth of +1.3% (excluding hyperinflation effects). Core Services delivered stable growth of +2.7% like‑for‑like.
Negative Updates
Specialized Services Revenue Downsignificantly
Specialized Services faced material headwinds with like‑for‑like decline of more than -9% driven by nonrenewal of significant contracts (notably Visa/TLScontact/UKVI), with a disclosed contract impact of around EUR 140 million.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and Like-for-Like Growth
Group net revenue of EUR 10.2 billion for FY2025 with like‑for‑like growth of +1.3% (excluding hyperinflation effects). Core Services delivered stable growth of +2.7% like‑for‑like.
Read all positive updates
Company Guidance
The company guided 2026 revenues to grow 0–2% (noting Q1 is expected to be below that range), with a stable reported EBITDA margin of 14.6% (assumes USD/EUR $1.20) and net free cash flow of EUR 800–850m excluding non‑recurring items (i.e., slightly below 2025’s EUR 901m due to a strong euro); management also targets >EUR100m of AI‑driven run‑rate savings in 2026 (with ≈EUR50m expected to materialize this year) while incurring one‑off implementation costs of EUR 70–90m (EUR 56m already recorded in Jan–Feb), has proposed a dividend increase to EUR 4.50/share (from EUR 4.20, ≈+7%) for shareholder approval, expects a 2026 tax rate below 30%, and says the balance sheet remains healthy (net debt below ~2x EBITDA, average debt cost <4%, average maturity ~3 years), assuming no major FX shocks.Teleperformance Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
56
Neutral
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.81B | 10.28B | 8.35B | 8.15B | 7.12B |
| Gross Profit | 1.15B | 3.35B | 2.60B | 1.81B | 1.50B |
| EBITDA | 1.82B | 1.91B | 1.38B | 1.37B | 1.14B |
| Net Income | 477.38M | 523.00M | 602.00M | 643.00M | 557.00M |
Balance Sheet | |||||
| Total Assets | 11.47B | 12.07B | 11.75B | 8.86B | 8.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.12B | 1.10B | 926.00M | 846.00M | 858.00M |
| Total Debt | 5.55B | 4.91B | 5.43B | 3.42B | 3.50B |
| Total Liabilities | 7.38B | 7.52B | 7.52B | 5.19B | 5.19B |
| Stockholders Equity | 4.10B | 4.56B | 4.23B | 3.67B | 3.16B |
Cash Flow | |||||
| Free Cash Flow | 1.13B | 1.59B | 1.14B | 947.00M | 876.00M |
| Operating Cash Flow | 1.37B | 1.81B | 1.38B | 1.25B | 1.11B |
| Investing Cash Flow | -707.91M | -221.00M | -2.59B | -602.00M | -1.16B |
| Financing Cash Flow | -622.43M | -1.40B | 1.32B | -715.00M | -173.00M |
Teleperformance Technical Analysis
Neutral
33.31
Price Trends
30.19
Negative
32.57
Negative
36.95
Negative
Market Momentum
-0.53
Negative
51.01
Neutral
91.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TLPFY, the sentiment is Neutral. The current price of 33.31 is above the 20-day moving average (MA) of 28.65, above the 50-day MA of 30.19, and below the 200-day MA of 36.95, indicating a neutral trend. The MACD of -0.53 indicates Negative momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 91.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TLPFY.
Teleperformance Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $4.49B | 49.97 | 6.24% | 0.71% | 0.20% | 2.72% | |
67 Neutral | $3.55B | 12.60 | 21.76% | 1.38% | 2.36% | 11.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $1.97B | -72.27 | -2.68% | ― | 93.41% | -2515.85% | |
62 Neutral | $3.51B | 7.56 | 12.35% | 6.84% | 9.69% | -22.10% | |
60 Neutral | $2.29B | 17.89 | 8.80% | 2.20% | 4.62% | 102.72% | |
60 Neutral | $1.52B | 27.64 | 6.21% | ― | 59.19% | -35.47% |
* Industrials Sector Average
TLPFY
Teleperformance
29.41
-14.95
-33.70%
ABM
ABM Industries
39.05
-5.12
-11.59%
CBZ
CBIZ
27.59
-48.53
-63.75%
MMS
Maximus
65.11
-1.71
-2.55%
UNF
UniFirst
258.33
86.47
50.32%
FA
First Advantage
11.29
-3.07
-21.38%
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.