At almost 400 euros per share, Telepeformance has never been worth so much on the stock market. The capitalization of the Parisian company, to which groups and administrations around the world entrust their customer service, now exceeds 23 billion euros, which places it in 29e position of the largest multinationals in the Cac 40, ahead of Veolia Environnement and behind Orange. Since its entry on the flagship index on June 22, 2000, its rank has not changed although its price has almost doubled.
In ten years, the Teleperformance share price has increased by more than 20 times. Each year, it is increasing strongly, even very strongly. 2018 is the one where the increase was the most modest: + 16.87%.
| Photo credits: FactSet
Over 2021, which ends, the Teleperformance share is a winner of 46%, its tenth consecutive year of double-digit stock market growth. The investor who would have bet 10,000 euros at the end of 2011 would thus find himself at the head of a jackpot of 220,000 euros today, without counting the dividends, the distribution of which has never been suspended.
The Covid, a third of the growth this year
The crisis has shown that the world leader in the business, which notably develops chatbots based on artificial intelligence for e-commerce sites, was able to post profitable growth in all weathers. In 2020, at the height of the health crisis, turnover increased by 7% to 5.7 billion euros, and the operating margin stood at 12.8% despite a related activity. with the hotel industry and airlines almost at a standstill and a visa application service, usually very lucrative, reduced to zero.
This year, from quarter to quarter, the growth has been remarkable. In the first nine months, like-for-like revenues jumped 31%. Although the basis for comparison for the fourth quarter is high, the group will have no trouble achieving its objective – noted in early November – of posting an organic growth rate of more than 20% over the whole of 2021. Côté profitability, it aims for a margin rate of around 15%.
This morning, Teleperformance announced the acquisition of an American company, much smaller than it, but showing an even better profitability profile than its own. Senture, specializing in the outsourced management of business processes to administrations in the United States (BPO consists of entrusting a service provider with certain business processes, such as purchasing, accounting, finance, customer relationship management or human resources and payroll), this year achieved sales of $ 192 million (170 million euros), with an adjusted operating margin of 16%, with government services accounting for nearly 80% of sales. .
“This acquisition will strengthen the group’s global leadership in the key sector of services to citizens, which offers strong growth potential in the world, particularly in the United States”, commented CEO Daniel Julien. Teleperformance, which he founded in 1978, will spend 400 million dollars (353.5 million euros) to seize Senture. The transaction, once finalized, will be accretive by around 5% on earnings per share, management calculated.
“The digitization of solutions and companies, all sectors combined, is promising for the group”, recently explained analyst Sarah Thiron, at Midcap Partners, welcoming in particular the positioning of leader in omnichannel customer relationship management of Teleperformance, which “Now also offers services to companies in integrated digital solutions (BPO) through DIBPS Teleperformance is able to deliver average annual organic growth high single digit around 9% from 2023 (compared to + 7.3% between 2010 and 2019). ”
In the short term, the appearance of the Omicron variant should tend to extend Covid assistance operations to governments (toll-free information, making appointments for vaccination), which have contributed to a third of the growth this year. , based on figures as of September 30. And when this activity slows down, before disappearing with the end of the health crisis, travel services, managed by the TLScontact subsidiary, will be able to rebound.