NYSE:TNET

Stock Analysis Report

Executive Summary

TriNet Group, Inc. provides human resources solutions for small and midsize businesses in the United States and Canada.

Snowflake

Fundamentals

Adequate balance sheet with proven track record.


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


Market Performance


7 Day Return

-3.8%

TNET

-1.3%

US Professional Services

0.07%

US Market


1 Year Return

26.1%

TNET

20.2%

US Professional Services

8.9%

US Market

Return vs Industry: TNET exceeded the US Professional Services industry which returned 20.2% over the past year.

Return vs Market: TNET exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

TNETIndustryMarket
7 Day-3.8%-1.3%0.07%
30 Day-9.1%-1.4%-0.3%
90 Day-19.4%-3.5%-1.6%
1 Year26.1%26.1%21.4%20.2%11.3%8.9%
3 Year209.4%209.4%53.7%48.6%46.3%36.8%
5 Year104.9%104.9%83.0%73.0%62.1%44.3%

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

Valuation

Is TriNet Group undervalued compared to its fair value and its price relative to the market?

21.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TNET ($58.22) is trading above our estimate of fair value ($42.28)

Significantly Below Fair Value: TNET is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TNET is poor value based on its PE Ratio (21.6x) compared to the Professional Services industry average (20.2x).

PE vs Market: TNET is poor value based on its PE Ratio (21.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: TNET is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: TNET is overvalued based on its PB Ratio (9.3x) compared to the US Professional Services industry average (2.4x).


Next Steps

Future Growth

How is TriNet Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TNET's forecast earnings growth (14.6% per year) is above the savings rate (2.7%).

Earnings vs Market: TNET's earnings (14.6% per year) are forecast to grow faster than the US market (14.5% 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 (-9.1% per year).

High Growth Revenue: TNET's revenue is forecast to decline over the next 3 years (-9.1% 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 (37.6%)


Next Steps

Past Performance

How has TriNet Group performed over the past 5 years?

51.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TNET has become profitable over the past 5 years, growing earnings by 51.2% per year.

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 (-14.5%) over the past year, making it difficult to compare to the Professional Services industry average (36.8%).


Return on Equity

High ROE: TNET's Return on Equity (43.1%) is considered outstanding.


Return on Assets

ROA vs Industry: TNET has a higher Return on Assets than the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: TNET has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TriNet Group's financial position?


Financial Position Analysis

Short Term Liabilities: TNET's short term assets ($1.5B) exceeds its short term liabilities ($1.2B)

Long Term Liabilities: TNET's short term assets (1.5B) exceeds its long term liabilities (660.0M)


Debt to Equity History and Analysis

Debt Level: TNET's debt to equity ratio (91.6%) 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 (68.9%).

Interest Coverage: Insufficient data to determine if TNET's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: TNET has a low level of unsold assets or inventory.

Debt Coverage by Assets: TNET's debt is covered by short term assets (assets are 3.619400x debt).


Next Steps

Dividend

What is TriNet Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate TNET's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TNET's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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

What is the CEO of TriNet Group's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Burton Goldfield (63yo)

11.4yrs

Tenure

US$6,218,976

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 ($USD6.22M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Burton's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.4yrs

Average Tenure

56yo

Average Age

Experienced Management: TNET's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

10.2yrs

Average Tenure

63yo

Average Age

Experienced Board: TNET's board of directors are seasoned and experienced ( 10.2 years average tenure).


Insider Trading

Insider Buying: TNET insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,069,08509 Aug 19
Heber Raymond Bingham
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$71.27
SellUS$622,96926 Feb 19
Kenneth Goldman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$62.30
SellUS$1,211,05022 Feb 19
Wayne Lowell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$60.55

Ownership Breakdown


Management Team

  • Burton Goldfield (63yo)

    President

    • Tenure: 11.4yrs
    • Compensation: US$6.22m
  • Craig Flower (60yo)

    Chief Technology Officer

    • Tenure: 4.6yrs
  • Michael Mendenhall (57yo)

    Senior VP

    • Tenure: 1.6yrs
  • Rich Beckert (57yo)

    CFO & Senior VP

    • Tenure: 2.4yrs
    • Compensation: US$2.24m
  • Ed Griese (56yo)

    Senior Vice President of Insurance Services

    • Tenure: 3.7yrs
    • Compensation: US$1.27m
  • Alex Bauer

    Executive Director of Investor Relations

    • Tenure: 0yrs
  • Olivier Kohler (56yo)

    Senior VP & COO

    • Tenure: 1.5yrs
  • Barrett Boston (46yo)

    Senior VP & Chief Revenue Officer

    • Tenure: 2yrs
    • Compensation: US$2.06m
  • Michael Murphy (51yo)

    Chief Accounting Officer

    • Tenure: 3.3yrs
  • Samantha Wellington (41yo)

    Senior VP

    • Tenure: 0.9yrs
    • Compensation: US$4.18m

Board Members

  • David Hodgson (62yo)

    Chairman of the Board & Lead Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$282.15k
  • Mike Angelakis (54yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$284.52k
  • Ken Goldman (70yo)

    Independent Director

    • Tenure: 10.2yrs
    • Compensation: US$286.40k
  • Ray Raymond Bingham (73yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$403.28k
  • Katherine August-deWilde (71yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$285.63k
  • Martin Babinec (64yo)

    Independent Director

    • Tenure: 31.8yrs
    • Compensation: US$257.52k
  • Wayne Lowell (63yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$289.63k
  • Burton Goldfield (63yo)

    President

    • Tenure: 11.4yrs
    • Compensation: US$6.22m
  • Paul Chamberlain (55yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$280.52k

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$4.072b
  • Shares outstanding: 69.94m
  • Website: https://www.trinet.com

Number of Employees


Location

  • TriNet Group, Inc.
  • One Park Place
  • Suite 600
  • Dublin
  • California
  • 94568
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TNETNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2014

Biography

TriNet Group, Inc. provides human resources solutions for small and midsize businesses in the United States and Canada. The company offers multi-state payroll processing and tax administration; employee be ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:09
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.