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TNET

TriNet GroupNYSE:TNET Stock Report

Market Cap

US$6.3b

7D

2.9%

1Y

64.0%

Updated

25 Sep, 2021

Data

Company Financials +
TNET fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends0/6

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

Summary of all time highs, changes and price drops for TriNet Group
Historical stock prices
Current Share PriceUS$96.37
52 Week HighUS$58.44
52 Week LowUS$96.77
Beta1.43
1 Month Change5.73%
3 Month Change29.55%
1 Year Change63.95%
3 Year Change71.11%
5 Year Change345.54%
Change since IPO404.56%

Recent News & Updates

Sep 15
Under The Bonnet, TriNet Group's (NYSE:TNET) Returns Look Impressive

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

TNETUS Professional ServicesUS Market
7D2.9%0.6%0.1%
1Y64.0%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

Is TNET's price volatile compared to industry and market?
TNET volatility
TNET Beta1.43
Industry Beta1.07
Market Beta1

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

FoundedEmployeesCEOWebsite
19882,700Burton Goldfieldhttps://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

How do TriNet Group's earnings and revenue compare to its market cap?
TNET fundamental statistics
Market CapUS$6.35b
Earnings (TTM)US$247.00m
Revenue (TTM)US$4.20b

25.7x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TNET income statement (TTM)
RevenueUS$4.20b
Cost of RevenueUS$3.42b
Gross ProfitUS$780.00m
ExpensesUS$533.00m
EarningsUS$247.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.75
Gross Margin18.58%
Net Profit Margin5.88%
Debt/Equity Ratio66.5%

How did TNET perform over the long term?

See historical performance and comparison

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:20
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.