Teleperformance SE (TEP.PA) stock analysis

In our weekly check, Teleperformance SE is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 7, red flags: 4.

About Teleperformance SE

Teleperformance SE is an Industrials company (Specialty Business Services) based in France, listed on PAR as TEP.PA.

What our checks show for TEP.PA

Red flags

• The net margin fell by 3 points over 5 years, to 4.9%: the company keeps less of each sale as profit.
• The gross margin fell by 18.7 points, to 11.8%: costs are rising faster than prices.
• The net margin is only 4.9%: little room if costs rise.
• The stock has fallen as much as 88% from a peak. Would you have held through that?

Warning signs

• Net debt is 2.1x a year of EBITDA (debt/equity 1.2). That limits room in a downturn and raises refinancing risk.
• Analysts expect only about 0.5% a year of growth in revenue.
• Earnings per share fell 8.1% a year over the last 3 years.
• Net profit fell 8.2% a year over the last 3 years.
• The price swings a lot: 48.7% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• Thinly traded (about 257 thousand shares a day): buying and selling can move the price.

Strengths

• Operating cash flow is 2.88x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 20.4% a year over the next years.
• Analysts expect the net margin to improve by 3.5 points from today's 4.9%.
• Free cash flow is 11.5% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 45% of profit: there is a cushion.
• The price is 10.1 times earnings (P/E), reasonable for its growth.

Similar companies

UNF · ELIS.PA · FA · ABM · CBZ · SRP.L

Questions

What grade does Teleperformance SE (TEP.PA) have?

In our weekly check, Teleperformance SE is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 7, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TEP.PA stock?

This week's biggest flags for Teleperformance SE: Margins falling, Gross margin falling, Thin margins. In total 11 of 25 checks show a warning or a red flag.

What does Teleperformance SE do?

Teleperformance SE is an Industrials company (Specialty Business Services) based in France, listed on PAR as TEP.PA.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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