Teleperformance TEP.PA
Teleperformance is a French business process outsourcing (BPO) company that manages customer experience and back-office solutions for large corporations, with a model based on interaction volume and workforce management. Teleperformance trades at a P/E of 9.19 and an FCF yield of 26.62%, but the decline in revenue (-4.6%) and earnings (-11.6%) reflects the structural pressure of AI on traditional BPO, justifying the discount. The sequential improvement in H1 2026 and the 6.19% dividend offer some support, but the disruption risk remains the dominant factor.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Teleperformance is a French business process outsourcing (BPO) company that manages customer experience and back-office solutions for large corporations, with a model based on interaction volume and workforce management. Teleperformance trades at a P/E of 9.19 and an FCF yield of 26.62%, but the decline in revenue (-4.6%) and earnings (-11.6%) reflects the structural pressure of AI on traditional BPO, justifying the discount. The sequential improvement in H1 2026 and the 6.19% dividend offer some support, but the disruption risk remains the dominant factor.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.5 |
| Quality / Moat | 5.7 |
| Valuation | 9.4 |
| Growth | 2.1 |
| Dividend | 8.9 |
| Momentum | 7.2 |
| Risk & Context | 6.6 |
OVERALL SCORE: 6.7/10
Context and risks
The BPO sector is under structural pressure from generative AI adoption, as evidenced by Meta's restructuring with Wipro. Additionally, governance in France presents a moderate institutional risk, adding to the need for independent oversight highlighted in the news.
News considered in the analysis
- Teleperformance (ENXTPA:TEP) Stock Looks Cheap Based On Current Earnings — Artículo de opinión de Simply Wall St. sobre la valoración; no aporta información nueva sobre la empresa.
- Meta Scales Back Wipro Outsourcing Following AI-Led Business Restructuring — Meta reduce su externalización con Wipro, un competidor directo. Señala la presión de la IA sobre el modelo BPO tradicional y podría extenderse a Teleperformance.
- Teleperformance SE (TLPFF) (H1 2026) Earnings Call Highlights: Sequential Revenue Improvement ... — Mejora secuencial de ingresos en el primer semestre de 2026, un dato positivo que contrasta con la caída interanual.
- European Dividend Stocks To Enhance Your Portfolio — Listículo genérico sobre dividendos europeos; sin información específica sobre Teleperformance.
- Teleperformance Governance Shift Puts Independent Oversight And Capital Returns In Focus — Cambio de gobernanza hacia supervisión independiente y foco en retorno de capital; positivo para la protección del accionista.
Verdict: Hold; the valuation is attractive but the business is in decline, wait for signs of growth stabilization before increasing the position.
Main risk: Disruption of the BPO business model by client adoption of generative AI, which is already reducing outsourcing (e.g., Meta with Wipro) and could accelerate the decline in revenue and earnings.
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