TriNet Group
Market Cap
US$5.1b
Last Updated
2020/11/27 00:19 UTC
Data Sources
Company Financials +
Executive Summary
TriNet Group, Inc. provides human resources (HR) solutions for small and midsize businesses in the United States. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 2.3% per year for the next 3 years
Snowflake Analysis
Outstanding track record with excellent balance sheet.
Similar Companies
Share Price & News
How has TriNet Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TNET is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TNET's weekly volatility has decreased from 9% to 4% over the past year.
Market Performance
7 Day Return
2.4%
TNET
-1.2%
US Professional Services
2.1%
US Market
1 Year Return
40.1%
TNET
22.4%
US Professional Services
19.8%
US Market
Return vs Industry: TNET exceeded the US Professional Services industry which returned 22.4% over the past year.
Return vs Market: TNET exceeded the US Market which returned 19.7% over the past year.
Shareholder returns
| TNET | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | -1.2% | 2.1% |
| 30 Day | 9.8% | 10.0% | 8.1% |
| 90 Day | 10.6% | 7.6% | 6.0% |
| 1 Year | 40.1%40.1% | 23.3%22.4% | 22.5%19.8% |
| 3 Year | 71.7%71.7% | 59.3%54.8% | 46.5%36.8% |
| 5 Year | 296.3%296.3% | 109.6%98.7% | 96.9%75.3% |
Long-Term Price Volatility Vs. Market
How volatile is TriNet Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Is Now An Opportune Moment To Examine TriNet Group, Inc. (NYSE:TNET)?1 month ago | Simply Wall St
Should You Invest In TriNet Group (NYSE:TNET)?1 month ago | Simply Wall St
Can TriNet Group, Inc.'s (NYSE:TNET) ROE Continue To Surpass The Industry Average?Valuation
Is TriNet Group undervalued compared to its fair value and its price relative to the market?
17.66x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TNET ($76.84) is trading above our estimate of fair value ($50.08)
Significantly Below Fair Value: TNET is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TNET is good value based on its PE Ratio (17.7x) compared to the US Professional Services industry average (23.2x).
PE vs Market: TNET is good value based on its PE Ratio (17.7x) compared to the US market (19.7x).
Price to Earnings Growth Ratio
PEG Ratio: TNET's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: TNET is overvalued based on its PB Ratio (8.3x) compared to the US Professional Services industry average (3x).
Next Steps
Future Growth
How is TriNet Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
-2.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TNET's earnings are forecast to decline over the next 3 years (-2.3% per year).
Earnings vs Market: TNET's earnings are forecast to decline over the next 3 years (-2.3% per year).
High Growth Earnings: TNET's earnings are forecast to decline over the next 3 years.
Revenue vs Market: TNET's revenue is expected to decline over the next 3 years (-11.9% per year).
High Growth Revenue: TNET's revenue is forecast to decline over the next 3 years (-11.9% 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 (31.3%)
Next Steps
Past Performance
How has TriNet Group performed over the past 5 years?
36.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TNET has high quality earnings.
Growing Profit Margin: TNET's current net profit margins (7.5%) are higher than last year (5.1%).
Past Earnings Growth Analysis
Earnings Trend: TNET's earnings have grown significantly by 36.1% per year over the past 5 years.
Accelerating Growth: TNET's earnings growth over the past year (54.2%) exceeds its 5-year average (36.1% per year).
Earnings vs Industry: TNET earnings growth over the past year (54.2%) exceeded the Professional Services industry -0.06%.
Return on Equity
High ROE: TNET's Return on Equity (48.1%) is considered outstanding.
Next Steps
Financial Health
How is TriNet Group's financial position?
Financial Position Analysis
Short Term Liabilities: TNET's short term assets ($2.0B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: TNET's short term assets ($2.0B) exceed its long term liabilities ($610.0M).
Debt to Equity History and Analysis
Debt Level: TNET's debt to equity ratio (98.4%) is considered high.
Reducing Debt: TNET had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: TNET's debt is well covered by operating cash flow (105.2%).
Interest Coverage: TNET's interest payments on its debt are well covered by EBIT (66.8x coverage).
Balance Sheet
Next Steps
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?
2.7yrs
Average management tenure
CEO
Burton Goldfield (64 yo)
12.5yrs
Tenure
US$5,626,015
Compensation
Mr. Burton M. Goldfield has been the Chief Executive Officer and President of Trinet Group, Inc. since May 2008. Mr. Goldfield has more than 25 years of experience in technology management and sales positi...
CEO Compensation Analysis
Compensation vs Market: Burton's total compensation ($USD5.63M) is about average for companies of similar size in the US market ($USD6.86M).
Compensation vs Earnings: Burton's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 12.5yrs | US$5.63m | 0.92% $ 47.0m | |
| Senior VP & COO | 2.58yrs | US$3.80m | 0.087% $ 4.5m | |
| Senior Vice President of Insurance Services | 4.75yrs | US$1.27m | 0.036% $ 1.9m | |
| Senior VP & Chief Revenue Officer | 3.08yrs | US$1.76m | 0.059% $ 3.0m | |
| Executive VP of Finance | 0.083yr | no data | no data | |
| Chief Technology Officer | 5.67yrs | no data | no data | |
| Executive Director of Investor Relations | no data | no data | no data | |
| Senior VP | 2yrs | US$4.18m | 0.050% $ 2.6m | |
| Senior VP | 2.67yrs | no data | no data | |
| Senior Vice President of Human Resources | 3.83yrs | no data | no data | |
| Senior Vice President of Strategy | 2.33yrs | no data | no data | |
| Senior Vice President of Products | 1.67yrs | no data | no data |
2.7yrs
Average Tenure
54yo
Average Age
Experienced Management: TNET's management team is considered experienced (2.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 12.5yrs | US$5.63m | 0.92% $ 47.0m | |
| Chairman of the Board & Lead Independent Director | 2.5yrs | US$392.52k | 0.16% $ 8.3m | |
| Independent Director | 3.75yrs | US$286.01k | 0.025% $ 1.3m | |
| Independent Director | 0.83yr | no data | 0.00032% $ 16.4k | |
| Independent Director | 12.33yrs | US$295.01k | 0.17% $ 8.8m | |
| Independent Director | 7.08yrs | US$292.51k | 0.20% $ 10.4m | |
| Independent Director | 32.83yrs | US$257.51k | 4.9% $ 251.1m | |
| Independent Director | 0.83yr | no data | 0.00032% $ 16.4k | |
| Independent Director | 11.83yrs | US$295.51k | 0.13% $ 6.7m | |
| Independent Director | no data | no data | no data | |
| Independent Director | 4.92yrs | US$280.51k | 0.044% $ 2.2m |
6.0yrs
Average Tenure
64yo
Average Age
Experienced Board: TNET's board of directors are considered experienced (6 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 company bio, 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$5.120b
- Shares outstanding: 66.63m
- Website: https://www.trinet.com
Number of Employees
Location
- TriNet Group, Inc.
- One Park Place
- Suite 600
- Dublin
- California
- 94568
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TNET | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 2014 |
Biography
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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/27 00:19 |
| End of Day Share Price | 2020/11/25 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.