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Teleperformance (TLPFY)
OTHER OTC:TLPFY
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Teleperformance
(OTC:TLPFY)
77Outperform
Teleperformance (TLPFY) vs. S&P 500 (SPY)
Market Cap
$6.08B
Dividend Yield2.96%
Average Volume (3M)600.00
Price to Earnings (P/E)10.8
Beta (1Y)1.25
Revenue Growth23.25%
EPS Growth-14.69%
CountryUS
Employees446,052
SectorIndustrials
Sector Strength68
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)4.74
Shares Outstanding119,748,730
10 Day Avg. Volume1,801
30 Day Avg. Volume600
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.50
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Teleperformance Business Overview & Revenue Model
Company DescriptionTeleperformance (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 MoneyTeleperformance 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 solid financial performance with strong revenue and free cash flow growth. The company has stable leverage and effective cash flow management, though there is a slight decrease in the 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 | ||||
| 9.46B | 10.28B | 8.35B | 8.15B | 7.12B | 5.73B | Gross Profit |
| 2.21B | 3.35B | 2.60B | 2.67B | 2.18B | 1.77B | EBIT |
| 1.07B | 1.08B | 1.01B | 994.00M | 869.00M | 555.00M | EBITDA |
| 1.66B | 1.91B | 1.63B | 1.63B | 1.37B | 1.04B | Net Income Common Stockholders |
| 622.00M | 523.00M | 602.00M | 643.00M | 557.00M | 324.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 944.00M | 1.10B | 926.00M | 852.00M | 861.00M | 1.01B | Total Assets |
| 11.75B | 12.07B | 11.75B | 8.86B | 8.31B | 7.02B | Total Debt |
| 5.43B | 4.91B | 5.43B | 3.40B | 3.49B | 3.25B | Net Debt |
| 4.55B | 3.85B | 4.55B | 2.58B | 2.65B | 2.26B | Total Liabilities |
| 7.52B | 7.52B | 7.52B | 5.19B | 5.15B | 4.62B | Stockholders Equity |
| 4.23B | 4.56B | 4.23B | 3.67B | 3.16B | 2.41B |
| Cash Flow | Free Cash Flow | ||||
| 1.30B | 1.59B | 1.14B | 996.00M | 909.00M | 731.00M | Operating Cash Flow |
| 1.51B | 1.81B | 1.38B | 1.29B | 1.14B | 989.00M | Investing Cash Flow |
| -2.56B | -221.00M | -2.59B | -602.00M | -1.16B | -253.00M | Financing Cash Flow |
| 1.34B | -1.40B | 1.41B | -715.00M | -173.00M | -161.00M |
Teleperformance Technical Analysis
Neutral
51.01
Price Trends
50.82
Negative
47.85
Positive
51.45
Negative
Market Momentum
-1.08
Positive
47.91
Neutral
44.67
Neutral
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 51.01 is above the 20-day moving average (MA) of 49.77, above the 50-day MA of 50.82, and below the 200-day MA of 51.45, indicating a bearish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 44.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TLPFY.
Teleperformance Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.13B | 21.76 | 7.17% | 0.78% | 5.04% | 31.69% | |
77 Outperform | $6.08B | 10.77 | 12.04% | 2.96% | 23.25% | -14.69% | |
69 Neutral | $4.31B | 73.27 | 3.19% | ― | 13.97% | -54.48% | |
69 Neutral | $3.89B | 14.81 | 16.88% | 1.75% | 8.01% | 53.64% | |
66 Neutral | $2.92B | 37.03 | 4.46% | 2.00% | 2.81% | -67.57% | |
63 Neutral | $4.29B | 11.05 | 5.73% | 232.30% | 4.75% | -5.69% | |
60 Neutral | $8.66B | 25.74 | 11.46% | 1.22% | -5.98% | -46.55% |
* Industrials Sector Average
Performance Comparison
TLPFY
Teleperformance
51.89
5.90
12.83%
ABM
ABM Industries
47.03
3.60
8.29%
CBZ
CBIZ
79.50
4.75
6.35%
MMS
Maximus
68.09
-11.33
-14.27%
UNF
UniFirst
174.61
18.47
11.83%
ARMK
ARAMARK Holdings
32.63
1.77
5.74%
Teleperformance Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -6.81% | Next Earnings Date: Jul 23, 2025
Earnings Call Sentiment Positive
Teleperformance's 2024 earnings call indicates a strong performance with record revenue and cash flow, successful integration with Majorel, and strategic focus on AI. However, challenges such as the loss of a major contract, FX impacts, and restructuring in France present concerns. Overall, the positives outweigh the negatives, suggesting a robust position moving forward.Highlights
Record Revenue Achievement
Teleperformance delivered over €10 billion in revenue for the first time, marking a statutory increase of 23% and a like-for-like increase of 2.6%.
Strong Free Cash Flow
The company generated more than €1.08 billion in free cash flow, emphasizing a resilient business model.
Successful Integration and Synergies
The integration with Majorel is on track, with over €90 million in synergies realized, aiming for €150 million.
Specialized Services Growth
Specialized Services experienced double-digit growth in 2024.
Strong Performance in EMEA and APAC
These regions delivered more than 7% growth in Q4 2024.
Positive Outlook for 2025
Projected revenue growth between 3% and 5% with continued margin improvement.
Strategic AI Partnerships
Launched a €100 million program for AI partnerships, including an investment in Sanas AI.
Lowlights
Contract Loss Impact
Loss of a long-standing visa services contract affected growth momentum in Q4 2024.
FX Impact on Margins
Adverse FX movements caused a 60 basis points negative impact on margins.
French Market Restructuring
A voluntary departure plan for 600 employees in France, with a provision of €54 million.
Telecom Vertical Reduction
Experienced some reduction in the telecom vertical.
Company Guidance
During the press conference for fiscal year 2024, the company highlighted several key financial achievements and provided guidance for 2025. In 2024, the company reported over €10 billion in revenue, marking a statutory increase of 23% and a like-for-like growth of 2.6%. Free cash flow exceeded €1 billion, specifically €1.08 billion, demonstrating the resilience of their business model. The BPO business, constituting 85-86% of operations, showed strong performance, with EMEA and APAC regions delivering over 7% growth in Q4. Additionally, Specialized Services experienced double-digit growth, despite a non-renewal of a major visa services contract impacting Q4. Integration with Majorel is progressing well, with recorded synergies of over €90 million, targeting €150 million. For 2025, the company forecasts revenue growth of 3-5%, excluding the special effect from the non-renewal. They anticipate continued margin expansion and strong cash flow generation, targeting €1 billion in net free cash flow before nonrecurring items. The company also announced an increase in dividends to €4.20 per share, raising the payout ratio to 48%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.