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Teleperformance SE

TEP.PA
38
Specialty Business Services · Industrials
Exchange
Euronext Paris
Winston Score
38
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Weak
Cash Flow
Strong
Stability
Mixed
Valuation
Good

Winston Score History

The full picture

Teleperformance is a French company that runs large call centers and customer service operations for other businesses around the world. When you call a company for help with your phone bill, a broken product, or a bank account question, there is a good chance Teleperformance employees are the ones answering. Its main customers are big corporations in industries like technology, banking, healthcare, and retail who prefer to outsource their customer support rather than run it themselves.

The company makes money by charging clients fees to handle their customer interactions, including phone calls, online chats, and content moderation. Teleperformance operates in over 80 countries and employs roughly 500,000 people, making it one of the largest business process outsourcing companies in the world. Its scale and global reach make it hard for smaller rivals to match its pricing, but the rise of artificial intelligence tools that can automate customer service conversations is a real long-term threat to its core business model.

Score breakdown

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Quality

Profit per sale
Gross Margin
9.1%
Thin — 9.1% gross margin
Profit after running costs
Operating Margin
8.8%
Modest — 8.8% operating margin
Return on the money invested
ROCE
12.2%
Good — 12.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-3.3%
Shrinking sales (-3.3% YoY)
Profit growth
EPS YoY
-1.8%
Earnings shrinking (-1.8% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
302%
Turns 302% of profit into real cash
Spare cash per sale
FCF Margin
11.7%
Modest free cash flow (11.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
1.06
Elevated debt (1.06)
Covers its interest
Interest Cover
3.76x
Tight — interest eats into profit (3.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
9.0x
no trend
Attractive valuation — P/E 9.0

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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