TRINET GROUP INC (TNET) Fundamental Analysis & Valuation
NYSE:TNET • US8962881079
Current stock price
44.47 USD
-1.31 (-2.86%)
At close:
44.47 USD
0 (0%)
After Hours:
This TNET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TNET Profitability Analysis
1.1 Basic Checks
- In the past year TNET was profitable.
- In the past year TNET had a positive cash flow from operations.
- Each year in the past 5 years TNET has been profitable.
- Each year in the past 5 years TNET had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of TNET (4.08%) is comparable to the rest of the industry.
- TNET has a better Return On Equity (287.04%) than 98.82% of its industry peers.
- TNET has a Return On Invested Capital of 19.45%. This is amongst the best in the industry. TNET outperforms 87.06% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TNET is significantly above the industry average of 12.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 287.04% | ||
| ROIC | 19.45% |
ROA(3y)6.15%
ROA(5y)7.79%
ROE(3y)339.51%
ROE(5y)220.54%
ROIC(3y)23.3%
ROIC(5y)23.41%
1.3 Margins
- TNET's Profit Margin of 3.09% is in line compared to the rest of the industry. TNET outperforms 52.94% of its industry peers.
- TNET's Profit Margin has declined in the last couple of years.
- TNET's Operating Margin of 6.09% is in line compared to the rest of the industry. TNET outperforms 54.12% of its industry peers.
- In the last couple of years the Operating Margin of TNET has declined.
- TNET has a worse Gross Margin (17.68%) than 77.65% of its industry peers.
- TNET's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.09% | ||
| PM (TTM) | 3.09% | ||
| GM | 17.68% |
OM growth 3Y-15.85%
OM growth 5Y-7.77%
PM growth 3Y-24.77%
PM growth 5Y-14.43%
GM growth 3Y-8.26%
GM growth 5Y-2.09%
2. TNET Health Analysis
2.1 Basic Checks
- TNET has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for TNET has been reduced compared to 1 year ago.
- Compared to 5 years ago, TNET has less shares outstanding
- TNET has a better debt/assets ratio than last year.
2.2 Solvency
- TNET has an Altman-Z score of 1.61. This is a bad value and indicates that TNET is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of TNET (1.61) is worse than 62.35% of its industry peers.
- TNET has a debt to FCF ratio of 3.82. This is a good value and a sign of high solvency as TNET would need 3.82 years to pay back of all of its debts.
- TNET has a Debt to FCF ratio (3.82) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 16.57 is on the high side and indicates that TNET has dependencies on debt financing.
- With a Debt to Equity ratio value of 16.57, TNET is not doing good in the industry: 91.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.57 | ||
| Debt/FCF | 3.82 | ||
| Altman-Z | 1.61 |
ROIC/WACC2.59
WACC7.52%
2.3 Liquidity
- A Current Ratio of 1.09 indicates that TNET should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.09, TNET is doing worse than 72.94% of the companies in the same industry.
- A Quick Ratio of 1.09 indicates that TNET should not have too much problems paying its short term obligations.
- TNET has a Quick ratio of 1.09. This is in the lower half of the industry: TNET underperforms 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. TNET Growth Analysis
3.1 Past
- TNET shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.36%.
- Measured over the past 5 years, TNET shows a small growth in Earnings Per Share. The EPS has been growing by 1.19% on average per year.
- Looking at the last year, TNET shows a decrease in Revenue. The Revenue has decreased by -0.85% in the last year.
- TNET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.43% yearly.
EPS 1Y (TTM)1.36%
EPS 3Y-12.46%
EPS 5Y1.19%
EPS Q2Q%24.62%
Revenue 1Y (TTM)-0.85%
Revenue growth 3Y0.85%
Revenue growth 5Y4.43%
Sales Q2Q%-71.36%
3.2 Future
- Based on estimates for the next years, TNET will show a very strong growth in Earnings Per Share. The EPS will grow by 23.47% on average per year.
- TNET is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -38.51% yearly.
EPS Next Y-7.78%
EPS Next 2Y0.58%
EPS Next 3Y1.72%
EPS Next 5Y23.47%
Revenue Next Year-4.21%
Revenue Next 2Y-0.53%
Revenue Next 3Y-38.51%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. TNET Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.55, which indicates a very decent valuation of TNET.
- Based on the Price/Earnings ratio, TNET is valued cheaper than 89.41% of the companies in the same industry.
- TNET is valuated cheaply when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.33, which indicates a very decent valuation of TNET.
- Based on the Price/Forward Earnings ratio, TNET is valued cheaper than 82.35% of the companies in the same industry.
- TNET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 9.33 |
4.2 Price Multiples
- TNET's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TNET is cheaper than 84.71% of the companies in the same industry.
- TNET's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TNET is cheaper than 84.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.99 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)7.2
EPS Next 2Y0.58%
EPS Next 3Y1.72%
5. TNET Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.53%, TNET has a reasonable but not impressive dividend return.
- The stock price of TNET dropped by -27.38% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 1.34, TNET pays a better dividend. On top of this TNET pays more dividend than 83.53% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, TNET pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
- TNET has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 33.55% of the earnings are spent on dividend by TNET. This is a low number and sustainable payout ratio.
DP33.55%
EPS Next 2Y0.58%
EPS Next 3Y1.72%
TNET Fundamentals: All Metrics, Ratios and Statistics
44.47
-1.31 (-2.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Industry Strength13.04
Industry Growth34.78
Earnings (Last)04-30 2026-04-30/bmo
Earnings (Next)07-23 2026-07-23/bmo
Inst Owners96.46%
Inst Owner Change0.29%
Ins Owners1.86%
Ins Owner Change22.53%
Market Cap2.10B
Revenue(TTM)5.01B
Net Income(TTM)155.00M
Analysts75.38
Price Target57.89 (30.18%)
Short Float %3.53%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend1.07
Dividend Growth(5Y)N/A
DP33.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-01 2026-04-01 (0.29)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.25%
Min EPS beat(2)12.75%
Max EPS beat(2)39.76%
EPS beat(4)4
Avg EPS beat(4)21.15%
Min EPS beat(4)10.37%
Max EPS beat(4)39.76%
EPS beat(8)6
Avg EPS beat(8)18.72%
EPS beat(12)10
Avg EPS beat(12)22.02%
EPS beat(16)14
Avg EPS beat(16)37.3%
Revenue beat(2)0
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-3.55%
Max Revenue beat(2)-0.96%
Revenue beat(4)0
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-1.58%
Revenue beat(12)0
Avg Revenue beat(12)-1.75%
Revenue beat(16)2
Avg Revenue beat(16)32.09%
PT rev (1m)-1.73%
PT rev (3m)-19.16%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-7.85%
EPS NY rev (1m)0.3%
EPS NY rev (3m)-13.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 9.33 | ||
| P/S | 0.42 | ||
| P/FCF | 8.99 | ||
| P/OCF | 6.94 | ||
| P/B | 38.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.48 |
EPS(TTM)5.2
EY11.69%
EPS(NY)4.76
Fwd EY10.71%
FCF(TTM)4.95
FCFY11.12%
OCF(TTM)6.41
OCFY14.41%
SpS105.92
BVpS1.14
TBVpS-11.84
PEG (NY)N/A
PEG (5Y)7.2
Graham Number11.5574 (-74.01%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 287.04% | ||
| ROCE | 26.29% | ||
| ROIC | 19.45% | ||
| ROICexc | 25.85% | ||
| ROICexgc | 87.13% | ||
| OM | 6.09% | ||
| PM (TTM) | 3.09% | ||
| GM | 17.68% | ||
| FCFM | 4.67% |
ROA(3y)6.15%
ROA(5y)7.79%
ROE(3y)339.51%
ROE(5y)220.54%
ROIC(3y)23.3%
ROIC(5y)23.41%
ROICexc(3y)31.88%
ROICexc(5y)34.64%
ROICexgc(3y)102.06%
ROICexgc(5y)92.77%
ROCE(3y)33.3%
ROCE(5y)32.72%
ROICexgc growth 3Y-1.9%
ROICexgc growth 5Y9.99%
ROICexc growth 3Y-10.47%
ROICexc growth 5Y-5%
OM growth 3Y-15.85%
OM growth 5Y-7.77%
PM growth 3Y-24.77%
PM growth 5Y-14.43%
GM growth 3Y-8.26%
GM growth 5Y-2.09%
F-Score6
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 16.57 | ||
| Debt/FCF | 3.82 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 104.55% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 5.87 | ||
| Cash Conversion | 81.67% | ||
| Profit Quality | 150.97% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.61 |
F-Score6
WACC7.52%
ROIC/WACC2.59
Cap/Depr(3y)104.24%
Cap/Depr(5y)83.39%
Cap/Sales(3y)1.47%
Cap/Sales(5y)1.29%
Profit Quality(3y)130.29%
Profit Quality(5y)117.22%
High Growth Momentum
Growth
EPS 1Y (TTM)1.36%
EPS 3Y-12.46%
EPS 5Y1.19%
EPS Q2Q%24.62%
EPS Next Y-7.78%
EPS Next 2Y0.58%
EPS Next 3Y1.72%
EPS Next 5Y23.47%
Revenue 1Y (TTM)-0.85%
Revenue growth 3Y0.85%
Revenue growth 5Y4.43%
Sales Q2Q%-71.36%
Revenue Next Year-4.21%
Revenue Next 2Y-0.53%
Revenue Next 3Y-38.51%
Revenue Next 5YN/A
EBIT growth 1Y6.27%
EBIT growth 3Y-15.13%
EBIT growth 5Y-3.69%
EBIT Next Year44.39%
EBIT Next 3Y21.94%
EBIT Next 5Y27%
FCF growth 1Y16.42%
FCF growth 3Y-22.67%
FCF growth 5Y-14.43%
OCF growth 1Y8.6%
OCF growth 3Y-18.61%
OCF growth 5Y-11.11%
TRINET GROUP INC / TNET Fundamental Analysis FAQ
What is the fundamental rating for TNET stock?
ChartMill assigns a fundamental rating of 5 / 10 to TNET.
What is the valuation status for TNET stock?
ChartMill assigns a valuation rating of 7 / 10 to TRINET GROUP INC (TNET). This can be considered as Undervalued.
How profitable is TRINET GROUP INC (TNET) stock?
TRINET GROUP INC (TNET) has a profitability rating of 5 / 10.
What is the financial health of TRINET GROUP INC (TNET) stock?
The financial health rating of TRINET GROUP INC (TNET) is 4 / 10.
Can you provide the expected EPS growth for TNET stock?
The Earnings per Share (EPS) of TRINET GROUP INC (TNET) is expected to decline by -7.78% in the next year.