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Teleperformance (TLPFY)
OTHER OTC:TLPFY
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Teleperformance
(OTC:TLPFY)
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Rating:67Neutral
Price Target:
$46.00
▲(24.70% 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
$4.41B
Dividend Yield6.74%
Average Volume (3M)1.70K
Price to Earnings (P/E)8.4
Beta (1Y)1.20
Revenue Growth9.69%
EPS Growth-22.10%
CountryUS
Employees446,052
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.42
Shares Outstanding119,748,730
10 Day Avg. Volume433
30 Day Avg. Volume1,701
Financial Highlights & Ratios
PEG Ratio-0.71
Price to Book (P/B)1.08
Price to Sales (P/S)0.48
P/FCF Ratio3.09
Enterprise Value/Market Cap2.49
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit3.29
Enterprise Value/Ebitda5.72
Forecast
1Y Price Target
$46.00Price Target Upside24.70% Upside
Rating ConsensusHold
Number of Analyst Covering0
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 its comprehensive suite of customer experience management services, which are billed based on service contracts with clients across multiple industries. The company's revenue model includes various streams such as service fees for call handling, client-specific projects, and performance-based incentives. Significant partnerships with leading global brands enable Teleperformance to secure long-term contracts, contributing to stable revenue flow. Additionally, the company's focus on technology-driven solutions, including AI and automation, enhances operational efficiency and allows for scalable service offerings, further boosting its earnings potential.
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
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.85
Very Positive
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.75
Positive
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.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.32B | 10.28B | 8.35B | 8.15B | 7.12B | 5.73B |
| Gross Profit | 3.35B | 3.35B | 2.60B | 1.81B | 1.50B | 1.13B |
| EBITDA | 1.92B | 1.91B | 1.38B | 1.37B | 1.16B | 858.20M |
| Net Income | 481.00M | 523.00M | 602.00M | 643.00M | 557.00M | 324.00M |
Balance Sheet | ||||||
| Total Assets | 12.10B | 12.07B | 11.75B | 8.86B | 8.35B | 7.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.34B | 1.10B | 926.00M | 846.00M | 858.00M | 1.05B |
| Total Debt | 5.62B | 4.91B | 5.43B | 3.42B | 3.50B | 3.27B |
| Total Liabilities | 8.14B | 7.52B | 7.52B | 5.19B | 5.19B | 4.62B |
| Stockholders Equity | 3.95B | 4.56B | 4.23B | 3.67B | 3.16B | 2.41B |
Cash Flow | ||||||
| Free Cash Flow | 1.38B | 1.59B | 1.14B | 947.00M | 876.00M | 694.00M |
| Operating Cash Flow | 1.63B | 1.81B | 1.38B | 1.25B | 1.11B | 952.00M |
| Investing Cash Flow | -731.00M | -221.00M | -2.59B | -602.00M | -1.16B | -254.00M |
| Financing Cash Flow | -625.00M | -1.40B | 1.32B | -715.00M | -173.00M | -161.00M |
Teleperformance Technical Analysis
Negative
36.89
Price Trends
38.82
Negative
44.62
Negative
46.28
Negative
Market Momentum
-0.70
Negative
38.77
Neutral
19.70
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 36.89 is below the 20-day moving average (MA) of 37.34, below the 50-day MA of 38.82, and below the 200-day MA of 46.28, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 38.77 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TLPFY.
Teleperformance Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.08B | 16.63 | 17.61% | 1.36% | 3.40% | 13.75% | |
74 Outperform | $2.93B | 20.21 | 7.15% | 0.87% | 4.18% | 18.93% | |
70 Outperform | $2.80B | 24.84 | 6.32% | 2.36% | 4.27% | -24.06% | |
67 Neutral | $4.41B | 8.38 | 11.38% | 6.74% | 9.69% | -22.10% | |
65 Neutral | $3.07B | 32.00 | 7.84% | ― | 46.49% | -25.62% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | $2.61B | 549.40 | -13.57% | ― | 65.34% | -633.72% |
* Industrials Sector Average
TLPFY
Teleperformance
36.60
-10.24
-21.86%
ABM
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44.45
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CBZ
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MMS
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UNF
UniFirst
157.45
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FA
First Advantage
14.26
-5.50
-27.83%
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.