Teleperformance

Stock

ISIN: FR0000051807

Ticker: TEP

FR0000051807

TEP

Price

Debate sobre TEP

Puestos

Keineui

@Keineui

1Semana·

Teleperformance. Entry opportunity or wait and see?

$TEP (+4,05 %) looks undervalued to me at the moment. Profits are stable and rising slightly, the share price has been beaten up properly. Which now leads to a nice dividend yield of 7+% with a historically good performance, also well covered by the CF.

If you look at the adjusted profit, the P/E ratio (price/earnings ratio) is 4.20 which is 14.02 points below the historical average of 18.22 for the last 10 years.

13 analysts see price targets between €50 and €140, with an average of €78.54

https://aktienfinder.net/aktien-profil/Teleperformance-Aktie

After Citigroup and Morgan Stanley lowered their price targets at the end of March, the share fell to its lowest value (€ 46.14) in the following days. It has recovered slightly since then.

Today is the sales and revenue call. A good opportunity?

@investron
@Tenbagger2024
@Aktienhauptmeister
@Raketentoni

Edit: Price € 54.72 on 28.04.2026, 2 p.m.

17 Comentarios

Raketentoni@Raketentoni

1Semana

**First of all: Cool question! Mr. Prompt has booted up the setup for an ice-cold AOK fact check ** ☕

I love it when people come around the corner with concrete figures and their own assumptions. It shows that real substance is being built up here in the forum.

Let's take a look at Teleperformance ($TEP). A French titan in the field of business process outsourcing (BPO) and call centers that has been selling off heavily for months. Your colleague wonders: entry opportunity or wait and see?
Let's pull out the AOK machinery and run the story through our **quality dumbbell filter** (as of April 28, 2026
### The ice-cold AOK fact check for Teleperformance
Your colleague's assumption regarding the undervaluation (historical P/E ratio) is correct. But we don't just want to compare historical P/E ratios, we want to measure *current, operational quality* to see if it's a bargain - or a trap.
#### 1. Core Quality Formula (The Quality Check)

**We use Teleperformance's forecast operating margin (Recurring EBITA margin) for 2025 here, as it better reflects the current operating reality than outdated TTM values.
**Revenue growth (LFL 2025 forecast):** Teleperformance is struggling. Organic growth (like-for-like) is forecast to be only between **+1.0% and +2.0%** in 2025. This is puny and not a sign of a dynamic compounder.
** **Operating margin ( Recurring EBITA 2025 forecast):** This is where the substance lies. The margin is stable at between **14.7% and 15.0%**. This is rock solid for a personnel service provider/BPO provider.
* **Score:** 2.0 + 15.0 = \mathbf{17.0 \text{ points}}
** **Judgement:** **Fails.** Our hurdle for a "Good" is 25 points. At 17 points, Teleperformance is well below this. The operating business is reliable, but the lack of growth drags the score down. It is a "Moderate" quality score.
#### 2. Cashflow Quality Formula (The Cash Machine)
We check whether the profit exists only on paper or is hard cash. Teleperformance has made acquisitions in 2025 (like Majorel), which distorts the classic FCF. We look at the ability to generate cash.
**Free cash flow forecast (2025):** Teleperformance forecasts FCF of around **EUR 900m** (adjusted). That is brute cash power.
* FCF yield:** With a market capitalization of around EUR 5.1 billion, the cash flow yield is currently around **~ 17.5%**.
** **Judgement:** > 5.0% = **"Very attractive "**. Teleperformance is an absolute cash machine in operational terms. They convert almost every euro of profit into hard cash. That is the absolute substance of the share.
#### 3. Dividend Filter (Income-Core)
(as your colleague correctly calculated, based on the distribution of EUR 5.73 for 2024).
**Sustainability:** The payout ratio (payout ratio) is a relaxed approx. 45% of adjusted earnings. Due to the brutal cash flow (EUR 900m FCF vs. approx. EUR 340m dividend amount), the dividend is **double and triple sustainably covered**.
** **Judgement:** > 3.5 % = **"Check "**. A perfect match for our *income core*.
#### 4. The exclusion rule (the knock-out criterion - the AI shock)🚩
Teleperformance's business model (call center, personnel services) is seen by the market as extremely endangered by **generative AI (GenAI)**.
* **Colleague's assumption:** AI replacing the model is *the* reason for the share price crash. If bots solve 80% of simple queries (basic inquiry), teleperformance needs fewer staff.
** **The operational reality (as of 2026):** Teleperformance has reacted to this. They are massively implementing AI ("human-in-the-loop" model) to increase agent efficiency by 25%. They are shifting the business away from pure "volume-based" services to more valuable "consulting" and "trust & safety" tasks. The knockout criterion ("model becomes obsolete") is not yet met today, as AI is a *leverage* rather than a full replacement, but the *fear of it* is the biggest risk to the stock.
#### 5. Bargain Hunter's List (The entry zones)
**Strong Buy (Bunker Price):** < 48.00 EUR (The Crisis Low). Here the market is fully pricing in the AI crash.
** **Fair entry (income security):** **55.00 - 65.00 EUR**. At this level you get a cash flow yield of over 20% and a dividend yield that pays you for waiting.
### Mr. Prompt's final verdict: An income core with dumbbell potential
Let's answer your colleague's question honestly:
**Income core or wait and see? 👉 It's a prime entry opportunity for an INCOME INVESTOR.
We don't need to value Teleperformance on the *core quality* (sales+margin) that we look for in a Scandinavian compounder like Novo or Alfa Laval. Teleperformance is no longer a growth stock. They are a **value and income specialist**.
Here's the story for the portfolio: you buy an operating cash machine (17.5% FCF yield) that doubles and triples your dividend (7.0%). You get paid to wait.
**The dumbbell potential:** You buy this stock at an extremely cheap price because the market is panicking about AI. Your colleague's guess is the biggest red-flag, but it's *the reason* for the low price. If Teleperformance proves that AI makes their agents more efficient instead of replacing them, and they can maintain margins, then there is massive upside potential here (arithmetic P/E from 4x to 8x or 10x).
**Conclusion:** If he is looking for a defensive income fund and ice coldly interprets the AI risk as "Priced for Perfection" (i.e. price reflects worst case scenario), he can put a first tranche here. For cash flow hunters, this thing is an absolute dream. But it is **not** an AOK quality stock, but a cash flow monopoly with a big risk question mark.

•

Ver todas las 5 respuestas adicionales

Markus1703

@Markus1703

1Año·

$TEP (+4,05 %) Anyone heard anything about why TP just dropped like this again? Did I miss something?

4 Comentarios

Erich K.@Erich_aus_der_Steiermark

1Año

I don't understand the question, they have been falling since fall 2021, from almost 400 to under 100 euros and no bottom in sight.

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Wizard2

@investment_wizard_387

2Año·

Farewell TPE! Kind of bummed I could've sell this at 150$ in January!

07.03

Teleperformance

Vendido x29 en 91,28 €

2647,12 €

32,94 %

KoenigsRasse

@KoenigsRasse

2Año·

$TEP (+4,05 %)

What do you think of these companies?

Does it have a future or do you think it's more 🆘

9 Comentarios

Christian S.@Shaka_Schulz

2Año

There is a lack of news to justify the crash. I got in. Assets and earnings are solid, even if sales are going sideways for the time being. AI also more of an opportunity than a threat.

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Michael

@FireSale

2Año·

The figures from $TEP (+4,05 %) did not convince me and I got out yesterday. Correct decision as today shows. But remains on the watch list for a possible later re-entry

06.03

Teleperformance

Vendido x10 en 110,35 €

1103,50 €

12,08 %

7 Comentarios

Krush82@Krush82

2Año

@Burner You were "on fire" for the share. Did you buy or what is your opinion?

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Mostrar respuesta

Michael

@FireSale

2Año·

The share price fell sharply today because Klarna reports that it can save many call center employees with AI. I have now used this as an entry point for $TEP (+4,05 %) as I believe that many companies will outsource the call center/chatbot area anyway and Teleperformance itself will use AI and thus be able to save staff. There are also dividends. What do you think?

28.02

Teleperformance

Compró 10 a 98,45 €

984,54 €

4 Comentarios

Tony86@Tony86

2Año

What nonsense... I would say that the situation was correctly recognized and acted upon 👍🏻💪🏻

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Martin

@Joopiter

2Año·

Does anyone know why Teleperformance $TEP (+4,05 %) has crashed so badly? Because of the 3 billion takeover?

2 Comentarios

Malte@Malte123

2Año

I think they had bad quarterly figures with the last message. Unfortunately, I can't say anything more specific, but I hope there is someone here who knows more.

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