OTCPK:TLPF.Y

Stock Analysis Report

Executive Summary

Teleperformance SE provides outsourced omnichannel customer experience management services worldwide.

Rewards

Earnings are forecast to grow 12.47% per year

Earnings have grown 18.2% per year over the past 5 years

Risk Analysis

Has a high level of debt



Snowflake Analysis

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Teleperformance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TLPF.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

TLPF.Y

2.5%

US Professional Services

1.5%

US Market


1 Year Return

49.5%

TLPF.Y

30.1%

US Professional Services

20.1%

US Market

Return vs Industry: TLPF.Y exceeded the US Professional Services industry which returned 30.1% over the past year.

Return vs Market: TLPF.Y exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

TLPF.YIndustryMarket
7 Day2.2%2.5%1.5%
30 Day4.2%3.5%1.4%
90 Day10.3%13.1%8.7%
1 Year50.9%49.5%31.3%30.1%22.7%20.1%
3 Year143.0%136.1%61.8%56.6%50.1%40.5%
5 Year265.4%247.4%85.7%75.5%73.1%54.1%

Price Volatility Vs. Market

How volatile is Teleperformance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Teleperformance undervalued compared to its fair value and its price relative to the market?

41.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TLPF.Y ($131.29) is trading above our estimate of fair value ($96.28)

Significantly Below Fair Value: TLPF.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TLPF.Y is poor value based on its PE Ratio (41.8x) compared to the Professional Services industry average (20.1x).

PE vs Market: TLPF.Y is poor value based on its PE Ratio (41.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: TLPF.Y is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: TLPF.Y is overvalued based on its PB Ratio (6.2x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

How is Teleperformance forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TLPF.Y's forecast earnings growth (12.5% per year) is above the savings rate (1.7%).

Earnings vs Market: TLPF.Y's earnings (12.5% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: TLPF.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: TLPF.Y's revenue (7.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TLPF.Y's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TLPF.Y's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Teleperformance performed over the past 5 years?

18.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TLPF.Y has high quality earnings.

Growing Profit Margin: TLPF.Y's current net profit margins (6.8%) are lower than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: TLPF.Y's earnings have grown by 18.2% per year over the past 5 years.

Accelerating Growth: TLPF.Y's earnings growth over the past year (4.7%) is below its 5-year average (18.2% per year).

Earnings vs Industry: TLPF.Y earnings growth over the past year (4.7%) underperformed the Professional Services industry 10.4%.


Return on Equity

High ROE: TLPF.Y's Return on Equity (14.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Teleperformance's financial position?


Financial Position Analysis

Short Term Liabilities: TLPF.Y's short term assets (€1.9B) exceed its short term liabilities (€1.3B).

Long Term Liabilities: TLPF.Y's short term assets (€1.9B) do not cover its long term liabilities (€3.0B).


Debt to Equity History and Analysis

Debt Level: TLPF.Y's debt to equity ratio (109.2%) is considered high.

Reducing Debt: TLPF.Y's debt to equity ratio has increased from 7.9% to 109.2% over the past 5 years.

Debt Coverage: TLPF.Y's debt is well covered by operating cash flow (26.5%).

Interest Coverage: TLPF.Y's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet

Inventory Level: TLPF.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: TLPF.Y's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Teleperformance's current dividend yield, its reliability and sustainability?

0.79%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: TLPF.Y's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TLPF.Y's dividend (0.79%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: TLPF.Y is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: TLPF.Y is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TLPF.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TLPF.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Daniel Julien (67yo)

€4,487,593

Compensation

Mr. Daniel Julien serves as Chief Executive Officer of Teleperformance Group Inc. Mr. Julien serves as Chief Executive Officer of Teleperformance Group at Hispanic Teleservices Corporation. Mr. Julien serv ...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD4.87M) is below average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Daniel's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Julien
Executive Chairman & Global CEO0yrs€4.49m1.66% 255.2m
Olivier Rigaudy
Group Deputy CEO & Group CFO10yrs€1.21mno data
Leigh Ryan
Chief Legal & Compliance Officer and Director3.8yrs€1.17m0.0017% 261.5k
Quy Nguyen-Ngoc
Investor Relations Director7.4yrsno datano data
Virginie Heuz
Communications Director0yrsno datano data
Charles Klotz
Chief Financial Officer of Americas & Asia Pacific0yrsno datano data
Alejandro Perez Elizondo
Chairman of the Ibero-LATAM Region0yrs€1.21mno data
Alan Truitt
Chief Business Development Officer0yrsno datano data
Cecil Petitti
Chief Strategy Officer of Teleperformance USA Group0yrsno datano data
Jeffrey Balagna
Chief Operating Officer of the EWAP region1.1yrsno datano data

5.7yrs

Average Tenure

66yo

Average Age

Experienced Management: TLPF.Y's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Julien
Executive Chairman & Global CEO0yrs€4.49m1.66% 255.2m
Leigh Ryan
Chief Legal & Compliance Officer and Director3.8yrs€1.17m0.0017% 261.5k
Jacques Berrebi
Chairman Emeritus8.1yrsno datano data
Jean-Claude Guez
Non-Independent Director8.8yrs€61.50k0.0017% 261.5k
Philippe Dominati
Non-Independent Director8.8yrs€127.50k0.0017% 261.5k
Patrick Thomas
Lead Independent Director2yrs€1.88k0.00085% 130.7k
Bernard Canetti
Non-Independent Director8.8yrs€69.46k0.0017% 261.5k
Robert Paszczak
Independent Director8.8yrs€81.50k0.0017% 266.1k
Alain Boulet
Independent Director8.8yrs€68.04k0.0010% 156.9k
Jacques Laurent
Non-Executive Chairman of Teleperformance Canada6.2yrsno datano data

8.8yrs

Average Tenure

70yo

Average Age

Experienced Board: TLPF.Y's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Teleperformance SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teleperformance SE
  • Ticker: TLPF.Y
  • Exchange: OTCPK
  • Founded: 1910
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: €14.185b
  • Listing Market Cap: €15.380b
  • Shares outstanding: 58.71m
  • Website: https://www.teleperformance.com

Number of Employees


Location

  • Teleperformance SE
  • 21/25 rue Balzac
  • Paris
  • Ile-de-France
  • 75008
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TEPENXTPA (Euronext Paris)YesCommon SharesFREURJan 1992
RCFDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992
0J6XLSE (London Stock Exchange)YesCommon SharesGBEURJan 1992
TLPF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1992
RFCETLX (Eurotlx)YesCommon SharesITEURJan 1992
TLPF.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2008

Biography

Teleperformance SE provides outsourced omnichannel customer experience management services worldwide. It offers analytics solutions, including InTouch, an in-depth analysis solution; Smart Cast, a forecasting solution; and On Target, a predictive solution. The company also provides automation solutions that incorporates natural language processing and proprietary omnichannel platforms; back-office solutions, such as back-office fraud prevention, order management, case management, billing, coding, chargeback, and collection services; and contact center solutions comprising customer care, technical support, and sales solutions, as well as credit and collection solutions. In addition, it offers digital integrated business services consisting of customer management, industry specific transaction processing, and finance and accounting, and HR services; consulting and knowledge services for process re-engineering and automation; and robotics process automation, artificial intelligence, machine learning, business intelligence, and data transformation products. Further, the company provides social media solutions, such as social media mapping, social interaction management, moderation, and content creation; business process solutions for visa, passport, and ID card applications, biometric data collection, and insurance enrollments permit applications; work-at-home and mobility solutions; and multilingual contact center solutions. Additionally, it offers VIP and specialized contact center solutions; and Web channels solutions to interact with customers via chat, click-to-call, video, or email, as well as implements and manages video kiosk operations. Teleperformance SE was incorporated in 1910 and is based in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:31
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.