Brett Girard, CPA, CA, CFA
Teleperformance
TLPFY-OTC
TOP PICK
Jun 20, 2023
target in Euros
400,000 employees globally handle call centres. Shares have fallen a lot in the past year partially due to labour practices in Colombia (being sorted out now). TEP holds a massive trove of data. They just signed a deal with Microsoft (cloud and AI), so that a machine on the other end will talk through a customer program, so TEP is a huge beneficiary of AI.
Call centres taking advantage of AI, so it's more efficient. On a growth path. They have earnings momentum, raised dividend 46% last year, as debt's coming down and free cash is going up. Yield is 1.3%. (Analysts’ price target is $166.92)
Enjoys massive growth from North American and European companies using their call centres. Free cash flow is growing in the double-digits. Dividend is growing 20% a year for the next five years. The stock is up 340% in the past 5 years.
They offer outsourced call centres (help lines). Done a great job integrating AI into their process. Customers (companies) save money by not paying the benefits of workers working those call centres; rather they hire TEP. TEP are call-centre experts
(A Top Pick Jan 17/19, Up 68%) This is artificial intelligence that is replacing people in call centres. These are insurance and financial call centres. He expects there to still be a long runway to come. This trades in France.
As a call centre it is an outsourcer of IT services. It has been coming back from October onwards. Regarding AI concerns it has the balance sheet and income to train machine algorithms.
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400,000 employees globally handle call centres. Shares have fallen a lot in the past year partially due to labour practices in Colombia (being sorted out now). TEP holds a massive trove of data. They just signed a deal with Microsoft (cloud and AI), so that a machine on the other end will talk through a customer program, so TEP is a huge beneficiary of AI.
(Analysts’ price target is $283.69)