(TEP) Teleperformance SE - Overview
Sector: Industrials | Industry: Specialty Business Services | Exchange: PA (France) | Market Cap: 4.051m EUR | Total Return: -15.8% in 12m
Industry Rotation: +1.8
Avg Turnover: 20.0M
Warnings
Extended 1w Choppy
Tailwinds
No distinct edge detected
Teleperformance SE is a France-based global provider of digital business services and outsourced customer experience (CX) management. The company operates through two primary divisions: Core Services, focusing on customer care and technical support, and Specialized Services, which includes visa application processing and interpretation. Its business model relies on high-volume service contracts across diverse industries such as banking, healthcare, and technology.
The company has increasingly integrated artificial intelligence and advanced analytics into its workflow to automate back-office functions and improve real-time multilingual support. As a major player in the Diversified Support Services sector, Teleperformance utilizes a smartshoring strategy, balancing onshore, nearshore, and work-at-home labor pools to manage operational costs and service delivery. For a deeper look at the fundamental metrics driving these operations, consider reviewing the data on ValueRay.
With a history dating back to 1910, Teleperformance has evolved from traditional telephony to a digital-first consultant for business process outsourcing (BPO). Its service portfolio now covers the full customer lifecycle, including acquisition, retention, and technical assistance, supported by a proprietary technology stack designed for global scale.
- Generative AI integration impacts long-term demand for traditional customer service outsourcing
- Majorel acquisition integration determines operational synergy realization and margin expansion
- Global macroeconomic slowdown reduces enterprise spending across key vertical market segments
- Labor cost inflation and recruitment challenges pressure core services operating margins
- Regulatory scrutiny regarding content moderation and data privacy affects trust and safety revenue
| Net Income: 1.02b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.24 > 0.02 and ΔFCF/TA 11.29 > 1.0 |
| NWC/Revenue: 2.76% < 20% (prev 5.74%; Δ -2.99% < -1%) |
| CFO/TA 0.27 > 3% & CFO 3.11b > Net Income 1.02b |
| Net Debt (4.56b) to EBITDA (3.46b): 1.32 < 3 |
| Current Ratio: 1.18 > 1.5 & < 3 |
| Outstanding Shares: last quarter (59.0m) vs 12m ago -0.31% < -2% |
| Gross Margin: 21.74% > 18% (prev 0.16%; Δ 2.16k% > 0.5%) |
| Asset Turnover: 174.0% > 50% (prev 120.9%; Δ 53.12% > 0%) |
| Interest Coverage Ratio: 4.02 > 6 (EBITDA TTM 3.46b / Interest Expense TTM 559.0m) |
| A: 0.05 (Total Current Assets 3.64b - Total Current Liabilities 3.07b) / Total Assets 11.48b |
| B: 0.34 (Retained Earnings 3.90b / Total Assets 11.48b) |
| C: 0.19 (EBIT TTM 2.25b / Avg Total Assets 11.77b) |
| D: 0.46 (Book Value of Equity 3.42b / Total Liabilities 7.38b) |
| Altman-Z'' Score: 3.20 = A |
| DSRI: 0.71 (Receivables 2.19b/2.19b, Revenue 20.49b/14.59b) |
| GMI: 0.73 (GM 21.74% / 15.78%) |
| AQI: 0.98 (AQ_t 0.57 / AQ_t-1 0.58) |
| SGI: 1.40 (Revenue 20.49b / 14.59b) |
| TATA: -0.18 (NI 1.02b - CFO 3.11b) / TA 11.48b) |
| Beneish M-Score: -3.42 (Cap -4..+1) = AA |
Over the past week, the price has changed by +12.84%, over one month by +38.17%, over three months by +49.19% and over the past year by -15.83%.
| Analysts Target Price | - | - |
P/E Trailing = 8.2952
P/E Forward = 4.7103
P/S = 0.3969
P/B = 0.9012
P/EG = 1.452
Revenue TTM = 20.49b EUR
EBIT TTM = 2.25b EUR
EBITDA TTM = 3.46b EUR
Long Term Debt = 3.18b EUR (from longTermDebt, last quarter)
Short Term Debt = 1.20b EUR (from shortTermDebt, last quarter)
Debt = 5.55b EUR (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.56b EUR (from netDebt column, last quarter)
Enterprise Value = 8.49b EUR (4.05b + Debt 5.55b - CCE 1.12b)
Interest Coverage Ratio = 4.02 (Ebit TTM 2.25b / Interest Expense TTM 559.0m)
EV/FCF = 3.06x (Enterprise Value 8.49b / FCF TTM 2.77b)
FCF Yield = 32.66% (FCF TTM 2.77b / Enterprise Value 8.49b)
FCF Margin = 13.53% (FCF TTM 2.77b / Revenue TTM 20.49b)
Net Margin = 4.98% (Net Income TTM 1.02b / Revenue TTM 20.49b)
Gross Margin = 21.74% ((Revenue TTM 20.49b - Cost of Revenue TTM 16.04b) / Revenue TTM)
Gross Margin QoQ = 12.88% (prev 10.67%)
Tobins Q-Ratio = 0.74 (Enterprise Value 8.49b / Total Assets 11.48b)
Interest Expense / Debt = 2.49% (Interest Expense 138.0m / Debt 5.55b)
Taxrate = 40.10% (166.0m / 414.0m)
NOPAT = 1.35b (EBIT 2.25b * (1 - 40.10%))
Current Ratio = 1.18 (Total Current Assets 3.64b / Total Current Liabilities 3.07b)
Debt / Equity = 1.36 (Debt 5.55b / totalStockholderEquity, last quarter 4.10b)
Debt / EBITDA = 1.32 (Net Debt 4.56b / EBITDA 3.46b)
Debt / FCF = 1.64 (Net Debt 4.56b / FCF TTM 2.77b)
Total Stockholder Equity = 4.21b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.66% (Net Income 1.02b / Total Assets 11.48b)
RoE = 24.21% (Net Income TTM 1.02b / Total Stockholder Equity 4.21b)
RoCE = 30.38% (EBIT 2.25b / Capital Employed (Equity 4.21b + L.T.Debt 3.18b))
RoIC = 15.60% (NOPAT 1.35b / Invested Capital 8.63b)
WACC = 4.33% (E(4.05b)/V(9.60b) * Re(8.22%) + D(5.55b)/V(9.60b) * Rd(2.49%) * (1-Tc(0.40)))
Discount Rate = 8.22% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -13.48 | Cagr: -0.51%
[DCF] Terminal Value 88.44% ; FCFF base≈2.28b ; Y1≈2.82b ; Y5≈4.81b
[DCF] Fair Price = 2.32k (EV 139.46b - Net Debt 4.56b = Equity 134.90b / Shares 58.1m; r=6.0% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 5.78 | EPS CAGR: 129.9% | SUE: N/A | # QB: 0
Revenue Correlation: 56.90 | Revenue CAGR: 14.07% | SUE: -0.01 | # QB: 0
EPS current Year (2026-12-31): EPS=13.31 | Chg30d=-3.75% | Revisions=-20% | GrowthEPS=+0.8% | GrowthRev=-1.6%
EPS next Year (2027-12-31): EPS=14.16 | Chg30d=-0.77% | Revisions=-11% | GrowthEPS=+6.4% | GrowthRev=+1.8%
[Analyst] Revisions Ratio: -20%