| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
TNET Overview
TriNet Group, Inc. provides human resources (HR) solutions for small and midsize businesses in the United States.
TriNet Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$96.37 |
| 52 Week High | US$58.44 |
| 52 Week Low | US$96.77 |
| Beta | 1.43 |
| 1 Month Change | 5.73% |
| 3 Month Change | 29.55% |
| 1 Year Change | 63.95% |
| 3 Year Change | 71.11% |
| 5 Year Change | 345.54% |
| Change since IPO | 404.56% |
Recent News & Updates
Under The Bonnet, TriNet Group's (NYSE:TNET) Returns Look Impressive
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Shareholder Returns
| TNET | US Professional Services | US Market | |
|---|---|---|---|
| 7D | 2.9% | 0.6% | 0.1% |
| 1Y | 64.0% | 31.0% | 35.3% |
Return vs Industry: TNET exceeded the US Professional Services industry which returned 31% over the past year.
Return vs Market: TNET exceeded the US Market which returned 35.3% over the past year.
Price Volatility
| TNET volatility | |
|---|---|
| TNET Beta | 1.43 |
| Industry Beta | 1.07 |
| Market Beta | 1 |
Stable Share Price: TNET is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TNET's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1988 | 2,700 | Burton Goldfield | https://www.trinet.com |
TriNet Group, Inc. provides human resources (HR) solutions for small and midsize businesses in the United States. The company offers multi-state payroll processing and tax administration; employee benefits programs, including health insurance and retirement plans; workers compensation insurance and claims management; employment and benefits law compliance; and other HR related services. It serves clients in various industries, including technology, professional services, financial services, life sciences, not-for-profit, property management, retail, manufacturing, and hospitality.
TriNet Group Fundamentals Summary
| TNET fundamental statistics | |
|---|---|
| Market Cap | US$6.35b |
| Earnings (TTM) | US$247.00m |
| Revenue (TTM) | US$4.20b |
25.7x
P/E Ratio1.5x
P/S RatioIs TNET overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TNET income statement (TTM) | |
|---|---|
| Revenue | US$4.20b |
| Cost of Revenue | US$3.42b |
| Gross Profit | US$780.00m |
| Expenses | US$533.00m |
| Earnings | US$247.00m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.75 |
| Gross Margin | 18.58% |
| Net Profit Margin | 5.88% |
| Debt/Equity Ratio | 66.5% |
How did TNET perform over the long term?
See historical performance and comparisonValuation
Is TriNet Group undervalued compared to its fair value and its price relative to the market?
25.7x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TNET ($96.37) is trading above our estimate of fair value ($84.65)
Significantly Below Fair Value: TNET is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TNET's PE Ratio (25.7x) is in line with the US Professional Services industry average.
PE vs Market: TNET is poor value based on its PE Ratio (25.7x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: TNET is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: TNET is overvalued based on its PB Ratio (8.5x) compared to the US Professional Services industry average (3x).
Future Growth
How is TriNet Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
9.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TNET's forecast earnings growth (9.6% per year) is above the savings rate (2%).
Earnings vs Market: TNET's earnings (9.6% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: TNET's earnings are forecast to grow, but not significantly.
Revenue vs Market: TNET's revenue is expected to decline over the next 3 years (-11.3% per year).
High Growth Revenue: TNET's revenue is forecast to decline over the next 3 years (-11.3% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TNET's Return on Equity is forecast to be high in 3 years time (32.1%)
Past Performance
How has TriNet Group performed over the past 5 years?
25.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TNET has high quality earnings.
Growing Profit Margin: TNET's current net profit margins (5.9%) are lower than last year (8%).
Past Earnings Growth Analysis
Earnings Trend: TNET's earnings have grown significantly by 25.3% per year over the past 5 years.
Accelerating Growth: TNET's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TNET had negative earnings growth (-22.8%) over the past year, making it difficult to compare to the Professional Services industry average (19%).
Return on Equity
High ROE: TNET's Return on Equity (33.2%) is considered high.
Financial Health
How is TriNet Group's financial position?
Financial Position Analysis
Short Term Liabilities: TNET's short term assets ($2.1B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: TNET's short term assets ($2.1B) exceed its long term liabilities ($704.0M).
Debt to Equity History and Analysis
Debt Level: TNET's debt to equity ratio (66.5%) is considered high.
Reducing Debt: TNET's debt to equity ratio has reduced from 1413.7% to 66.5% over the past 5 years.
Debt Coverage: TNET's debt is well covered by operating cash flow (98.2%).
Interest Coverage: TNET's interest payments on its debt are well covered by EBIT (19.6x coverage).
Balance Sheet
Dividend
What is TriNet Group current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TNET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TNET's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TNET's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TNET's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of TNET's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Burton Goldfield (65 yo)
13.33yrs
Tenure
US$9,364,617
Compensation
Mr. Burton M. Goldfield serves as Independent Director and Chairman of the Board at FinancialForce.com, inc. since April 15, 2021. He has been the Chief Executive Officer and President of Trinet Group, Inc...
CEO Compensation Analysis
Compensation vs Market: Burton's total compensation ($USD9.36M) is above average for companies of similar size in the US market ($USD6.40M).
Compensation vs Earnings: Burton's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: TNET's management team is considered experienced (3.4 years average tenure).
Board Members
Experienced Board: TNET's board of directors are considered experienced (5.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: TNET insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
TriNet Group, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: TriNet Group, Inc.
- Ticker: TNET
- Exchange: NYSE
- Founded: 1988
- Industry: Human Resource and Employment Services
- Sector: Commercial Services
- Market Cap: US$6.347b
- Shares outstanding: 65.86m
- Website: https://www.trinet.com
Number of Employees
Location
- TriNet Group, Inc.
- One Park Place
- Suite 600
- Dublin
- California
- 94568
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/25 22:20 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.