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1. Company Snapshot

1.a. 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 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.

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1.b. Last Insights on TEP

Teleperformance SE faced negative drivers in recent months, primarily related to its financial reporting and share transactions. The company's Half-year Financial Report as of June 30, 2025, was made available, potentially raising concerns among investors. Additionally, Teleperformance SE engaged in a share repurchase program, authorized by its Shareholders' Meeting on May 21, 2025, with a mandate to acquire its own shares for a maximum amount of €100 million. This buyback program may indicate management's attempt to boost shareholder value. However, some analysts may view this as a sign of limited growth opportunities.

1.c. Company Highlights

2. Slowing Growth Amidst FX Headwinds

The company's H1 2025 results revealed a revenue of over EUR 5.1 billion, representing a 1.5% like-for-like growth. The EBITDA margin remained stable at 13.9% on a constant FX basis. However, the actual EPS came out at '4.19', significantly lower than estimates at '5.92'. Core services grew 3% like-for-like, with 5% growth in EMEA APAC, while specialized services faced headwinds, contracting by 7% like-for-like. As Olivier Rigaudy noted, the margin was affected by two major factors: the impact of less demand in LLS in Q1, which was corrected in Q2, and a mix effect due to the lower margin of specialized services.

Publication Date: Aug -05

📋 Highlights
  • Core Services Growth: Core services grew 3% like-for-like, with 5% growth in EMEA APAC and 1.1% in Americas.
  • Revenue Performance: Revenue reached EUR 5.1 billion, with 1.5% like-for-like growth despite FX challenges.
  • EBITDA Margin Stability: EBITDA margin remained at 13.9% on a constant FX basis, with core services improving by 10 basis points.
  • Specialized Services Decline: Specialized services contracted by 7% like-for-like, excluding a significant visa application non-renewal.
  • Cash Flow Outlook: Net free cash flow before non-recurring items is expected to be around EUR 1 billion, with improvement anticipated in H2.

Segmental Performance

The core services EBITDA margin improved by 10 basis points despite FX headwinds, driven by growth in Europe, EMEA, and Asia Pacific. In contrast, specialized services declined by 3 points due to the TLS impact. EMEA APAC showed significant growth, close to 6%, and America returned to growth at 1.1%. The company's investment in AI deployment is yielding results, with over 250 AI projects completed in H1.

Outlook and Guidance

The company updated its 2025 outlook, expecting like-for-like revenue growth at the lower end of guidance and maintaining an EBITDA margin objective of 15% to 15.1% at constant currencies. Net free cash flow before non-recurring items is expected to be around EUR 1 billion. The average cost of debt decreased by 30 basis points in the first half, and the company expects a sustainable net cash flow of around EUR 1 billion before non-recurring items.

Valuation Metrics

With a P/E Ratio of 7.68, P/B Ratio of 0.88, and EV/EBITDA of 4.96, the company's valuation appears reasonable. The Dividend Yield stands at 6.21%, and the Free Cash Flow Yield is 40.12%. The Net Debt / EBITDA ratio is 2.44, indicating a manageable debt position. Analysts estimate next year's revenue growth at 2.3%, which is slightly higher than the current year's expected growth.

Operational Highlights

The company has made significant progress in its strategic initiatives, including the acquisition of ZP, integration of Majorel, and reorganization in France. Recent wins include a large deal with a global logistics player for AI solutions and supporting a U.S. financial service provider in risk management. The company's focus on delivering core services is expected to drive growth in the long term.

3. NewsRoom

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TP: Monthly Information Regarding Shares and Voting Rights

Dec -02

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Fortune and Great Place To Work rank TP among top 10 World's Best Workplaces 2025

Nov -25

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Teleperformance (ENXTPA:TEP): Assessing Value Following Expanded UK Public Sector Framework Wins

Nov -06

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TP Group: Nine Months 2025 Revenue

Nov -05

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TP: Monthly Information Regarding Shares and Voting Rights

Nov -03

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TP and UNICEF renew partnership to support education and humanitarian response

Oct -16

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TP and UNICEF Renew Partnership to Support Education and Humanitarian Response

Oct -16

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TP Group: Monthly Information Regarding Shares and Voting Rights

Oct -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.33%)

6. Segments

Core Services & Digital Integrated Business Services

Expected Growth: 8%

Teleperformance SE's 8% growth in Core Services & Digital Integrated Business Services is driven by increasing demand for omnichannel customer experience, digital transformation, and automation. Growing need for companies to outsource non-core functions, expansion in emerging markets, and strategic acquisitions also contribute to this growth.

Specialized Services

Expected Growth: 10%

Teleperformance SE's Specialized Services segment growth is driven by increasing demand for digital transformation, omnichannel customer experience, and business process outsourcing. The company's expertise in automation, AI, and analytics enables clients to improve operational efficiency and customer engagement. Additionally, strategic acquisitions and partnerships expand its capabilities and geographic reach, fueling growth.

7. Detailed Products

Customer Experience Management

Teleperformance SE offers customer experience management services that enable businesses to deliver exceptional customer experiences across various touchpoints and channels.

Back Office Services

Teleperformance SE provides back office services that help businesses to streamline their operations, reduce costs, and improve efficiency.

Digital Integrated Business Services

Teleperformance SE offers digital integrated business services that enable businesses to transform their operations and improve customer experiences through digital technologies.

Consulting and Analytics Services

Teleperformance SE provides consulting and analytics services that help businesses to make data-driven decisions and improve their operations.

Language Services

Teleperformance SE offers language services that enable businesses to communicate with customers in their native languages.

Trust and Safety Services

Teleperformance SE provides trust and safety services that help businesses to protect their customers and brands from fraud and abuse.

8. Teleperformance SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Teleperformance SE operates in a highly competitive industry, and customers have various options to choose from. However, the company's strong brand reputation and wide range of services offered reduce the threat of substitutes.

Bargaining Power Of Customers

Teleperformance SE's customers are large corporations with significant bargaining power. They can negotiate prices and terms, which can affect the company's revenue and profitability.

Bargaining Power Of Suppliers

Teleperformance SE has a diverse supplier base, and no single supplier has significant bargaining power. The company's large scale of operations also gives it negotiating power with suppliers.

Threat Of New Entrants

The business process outsourcing (BPO) industry has moderate barriers to entry, and new entrants can still enter the market. However, Teleperformance SE's established brand, large customer base, and global presence create a competitive advantage.

Intensity Of Rivalry

The BPO industry is highly competitive, with many players competing for market share. Teleperformance SE faces intense competition from established players and new entrants, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.34%
Debt Cost 4.43%
Equity Weight 46.66%
Equity Cost 7.67%
WACC 5.94%
Leverage 114.30%

11. Quality Control: Teleperformance SE passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ISS

A-Score: 5.9/10

Value: 6.1

Growth: 5.3

Quality: 5.2

Yield: 1.9

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Intertek

A-Score: 5.3/10

Value: 3.4

Growth: 4.4

Quality: 5.9

Yield: 5.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Teleperformance

A-Score: 5.0/10

Value: 9.2

Growth: 7.1

Quality: 4.5

Yield: 6.9

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Sodexo

A-Score: 5.0/10

Value: 7.6

Growth: 3.9

Quality: 3.7

Yield: 8.1

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
ID Logistics

A-Score: 4.4/10

Value: 3.6

Growth: 7.9

Quality: 2.4

Yield: 0.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
InPost

A-Score: 3.5/10

Value: 3.6

Growth: 8.0

Quality: 5.3

Yield: 0.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

60.12$

Current Price

60.12$

Potential

-0.00%

Expected Cash-Flows