- Teleperformance expects like-for-like sales growth of 3% to 5% in 2025, slightly above the estimated 3.37%.
- The company anticipates its adjusted EBITA margin to be stable, showing an increase within a range of 0.0 to +10 basis points.
- For the year 2024, Teleperformance‘s adjusted EBITA stood at €1.54 billion, marking a 19% increase year-on-year, beating the estimate of €1.38 billion.
- The adjusted EBITA margin for 2024 was reported at 15%, compared to 15.5% the previous year, and slightly above the estimate of 14.9%.
- Teleperformance‘s revenue hit €10.28 billion in 2024, reflecting a 23% increase year-on-year, surpassing the projected €10.25 billion.
- Net income for 2024 was €523 million, which represents a 12% decrease year-on-year, missing the estimate of €701.3 million.
- The dividend per share for 2024 was €4.20, slightly below the estimated €4.29.
- Net free cash flow rose by 33% year-on-year in 2024 to reach €1.08 billion, exceeding the estimate of €921 million.
- The integration of Majorel is progressing as expected, strengthening the company’s operational capabilities.
- Teleperformance announced a new investment program targeting €100 million in AI partnerships by 2025.
- Deputy CEO Thomas Mackenbrock affirmed the company’s aim for another year of profitable growth in 2025.
- The company is focused on strong generation of available net cash flow and plans continued efforts in deleveraging in 2025.
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Teleperformance on Smartkarma
Teleperformance is garnering positive analyst coverage on Smartkarma, with Value Investors Club highlighting its potential for growth in the customer experience management market. The report, published by Value Investors Club three months ago, emphasizes that Teleperformance is undervalued, especially considering its Language Line Solutions business, which is not fully valued in the current market price. Despite concerns about AI disruption, Teleperformance‘s strong growth and high profit margins are seen as key strengths positioning the company for future success.
A look at Teleperformance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores have assessed Teleperformance and provided an outlook for the company’s future performance. With a Value score of 3, Teleperformance is deemed to have moderate attractiveness in terms of its valuation. The company receives a favorable Dividend score of 4, indicating a strong outlook for dividend payments to investors. In terms of Growth and Momentum, Teleperformance scores a 4, reflecting a positive trajectory in these areas. However, the Resilience score of 2 suggests that the company may face challenges in weathering unexpected market conditions.
Overall, Teleperformance, known for providing customer relationship management services, shows promising signs for long-term growth and income generation based on the Smartkarma Smart Scores. Investors may find value in the company’s potential for growth and dividend payments, alongside its efforts to enhance customer relationships through a range of services including call centers, technical support, and market research. While facing some resilience challenges, Teleperformance‘s solid Growth and Momentum scores point towards a positive outlook in the competitive market landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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