NYSE:TNET

Stock Analysis Report

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Executive Summary

TriNet Group, Inc. provides human resources (HR) solutions for small and midsize businesses in the United States. More Details


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

1.6%

TNET

0.6%

US Professional Services

0.6%

US Market


1 Year Return

44.4%

TNET

26.0%

US Professional Services

22.7%

US Market

Return vs Industry: TNET exceeded the US Professional Services industry which returned 25.5% over the past year.

Return vs Market: TNET exceeded the US Market which returned 21% over the past year.


Shareholder returns

TNETIndustryMarket
7 Day1.6%0.6%0.6%
30 Day13.1%13.7%13.1%
90 Day14.9%6.0%4.5%
1 Year44.4%44.4%26.9%26.0%25.5%22.7%
3 Year78.6%78.6%62.5%57.8%49.0%39.1%
5 Year302.1%302.1%109.8%98.8%98.3%76.5%

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

Valuation

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

17.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TNET ($77.97) is trading above our estimate of fair value ($50.18)

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 (17.9x) compared to the US Professional Services industry average (22.4x).

PE vs Market: TNET is good value based on its PE Ratio (17.9x) compared to the US market (19.3x).


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 (8.4x) 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 ($USD5.63M) is about average for companies of similar size in the US market ($USD6.90M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Burton Goldfield
President12.5yrsUS$5.63m0.92%
$ 47.7m
Olivier Kohler
Senior VP & COO2.58yrsUS$3.80m0.087%
$ 4.5m
Edward Griese
Senior Vice President of Insurance Services4.75yrsUS$1.27m0.036%
$ 1.9m
Barrett Boston
Senior VP & Chief Revenue Officer3.08yrsUS$1.76m0.059%
$ 3.1m
Kelly Tuminelli
Executive VP of Finance0.083yrno datano data
Craig Flower
Chief Technology Officer5.67yrsno datano data
Alex Bauer
Executive Director of Investor Relationsno datano datano data
Samantha Wellington
Senior VP2yrsUS$4.18m0.050%
$ 2.6m
Michael Mendenhall
Senior VP2.67yrsno datano data
Catherine Wragg
Senior Vice President of Human Resources3.83yrsno datano data
James Franzone
Senior Vice President of Strategy2.33yrsno datano data
Dilshad Simons
Senior Vice President of Products1.67yrsno datano data

2.7yrs

Average Tenure

54yo

Average Age

Experienced Management: TNET's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Burton Goldfield
President12.5yrsUS$5.63m0.92%
$ 47.7m
David Hodgson
Chairman of the Board & Lead Independent Director2.5yrsUS$392.52k0.16%
$ 8.4m
Michael Angelakis
Independent Director3.75yrsUS$286.01k0.025%
$ 1.3m
Shawn Guertin
Independent Director0.83yrno data0.00032%
$ 16.6k
Heber Raymond Bingham
Independent Director12.33yrsUS$295.01k0.17%
$ 9.0m
Katherine August-deWilde
Independent Director7.08yrsUS$292.51k0.20%
$ 10.5m
Martin Babinec
Independent Director32.83yrsUS$257.51k4.77%
$ 248.0m
Jacqueline Kosecoff
Independent Director0.83yrno data0.00032%
$ 16.6k
Wayne Lowell
Independent Director11.83yrsUS$295.51k0.13%
$ 6.8m
Maria Contreras-Sweet
Independent Directorno datano datano data
Paul Chamberlain
Independent Director4.92yrsUS$280.51k0.044%
$ 2.3m

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: Insufficient data to determine if insiders have bought more shares than they have sold 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$5.195b
  • 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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 23:55
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.