Teleperformance SE
🇫🇷 TEP.PA · Paris · FR0000051807
Communication Services
EUR 49.15 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
5.8
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 49.15 ÷ 8.40 = 5.8
TTM period through: 2025-12-31
Forward P/E (estimated): 3.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 5.9
Yield (Fwd)
9.16%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 9.09%
Net Debt/EBITDA (TTM)
2.4x
Latest quarter: 4.6x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 4.6x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
53.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 49.9%
Cash Flow Payout (TTM): 17.3%
FCF Coverage (TTM): 4.75x
ROE
11.5%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
3.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Teleperformance is a global leader in outsourced customer experience management and communication services. While the exceptionally low P/E of 5.85 and well-covered 9.09% yield appear mathematically compelling, the core labor-intensive business model faces severe structural disruption risks from Generative AI. Not recommended for new positions, as the technological obsolescence risk makes this a potential value trap rather than a temporary buying opportunity for conservative dividend investors.
Sector Context
Teleperformance is a global leader in outsourced customer experience management, providing call center, technical support, and business process outsourcing (BPO) services. While the company generates strong current cash flows, the BPO sector heavily relies on labor arbitrage, a model increasingly threatened by structural technological shifts, making it a highly risky proposition for a 'forever' dividend strategy compared to regulated infrastructure.
📊 Strategy Analysis
- • Exceptionally cheap valuation metrics with a TTM P/E of 5.85 and EV/EBITDA of 3.77, reflecting extreme market pessimism.
- • High current dividend yield of 9.09% is currently well-covered by cash generation, with a low Free Cash Flow payout ratio of 17.3%.
- • Impressive historical dividend track record, featuring 10 years without a cut and a 15.3% compound annual growth rate.
⚠ What to Watch
- • Severe risk of permanent technological obsolescence as Generative AI threatens the long-term viability of the core labor-intensive Business Process Outsourcing (BPO) model.
- • Fundamental momentum is visibly deteriorating, evidenced by a negative 5-year EPS CAGR (-2.1%) and declining earnings over the last 8 quarters despite top-line growth.
- • The business lacks the monopolistic hard assets, captive customer bases, or regulatory moats required to protect cash flows during periods of rapid technological disruption.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.