TRINET GROUP INC (TNET) Fundamental Analysis & Valuation

NYSE:TNET • US8962881079

Current stock price

37.66 USD
-0.14 (-0.37%)
Last:

This TNET fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. TNET Profitability Analysis

1.1 Basic Checks

  • TNET had positive earnings in the past year.
  • TNET had a positive operating cash flow in the past year.
  • Each year in the past 5 years TNET has been profitable.
  • TNET had a positive operating cash flow in each of the past 5 years.
TNET Yearly Net Income VS EBIT VS OCF VS FCFTNET Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M

1.2 Ratios

  • TNET has a Return On Assets of 4.08%. This is comparable to the rest of the industry: TNET outperforms 54.65% of its industry peers.
  • With an excellent Return On Equity value of 287.04%, TNET belongs to the best of the industry, outperforming 98.84% of the companies in the same industry.
  • TNET has a better Return On Invested Capital (19.45%) than 86.05% 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 13.11%.
Industry RankSector 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%
TNET Yearly ROA, ROE, ROICTNET Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100 200 300 400

1.3 Margins

  • The Profit Margin of TNET (3.09%) is comparable to the rest of the industry.
  • TNET's Profit Margin has declined in the last couple of years.
  • TNET has a Operating Margin (6.09%) which is in line with its industry peers.
  • TNET's Operating Margin has declined in the last couple of years.
  • TNET's Gross Margin of 17.68% is on the low side compared to the rest of the industry. TNET is outperformed by 77.91% of its industry peers.
  • In the last couple of years the Gross Margin of TNET has declined.
Industry RankSector 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%
TNET Yearly Profit, Operating, Gross MarginsTNET Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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4

2. TNET Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TNET is creating value.
  • Compared to 1 year ago, TNET has less shares outstanding
  • The number of shares outstanding for TNET has been reduced compared to 5 years ago.
  • Compared to 1 year ago, TNET has an improved debt to assets ratio.
TNET Yearly Shares OutstandingTNET Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
TNET Yearly Total Debt VS Total AssetsTNET Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • Based on the Altman-Z score of 1.55, we must say that TNET is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.55, TNET is doing worse than 62.79% of the companies in the same industry.
  • 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's Debt to FCF ratio of 3.82 is in line compared to the rest of the industry. TNET outperforms 56.98% of its industry peers.
  • TNET has a Debt/Equity ratio of 16.57. This is a high value indicating a heavy dependency on external financing.
  • TNET has a Debt to Equity ratio of 16.57. This is amonst the worse of the industry: TNET underperforms 88.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 16.57
Debt/FCF 3.82
Altman-Z 1.55
ROIC/WACC2.66
WACC7.31%
TNET Yearly LT Debt VS Equity VS FCFTNET Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 1.09 indicates that TNET should not have too much problems paying its short term obligations.
  • TNET has a Current ratio of 1.09. This is in the lower half of the industry: TNET underperforms 72.09% of its industry peers.
  • TNET has a Quick Ratio of 1.09. This is a normal value and indicates that TNET is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.09, TNET is doing worse than 70.93% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
TNET Yearly Current Assets VS Current LiabilitesTNET Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. TNET Growth Analysis

3.1 Past

  • TNET shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.13%.
  • 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.
  • TNET shows a small growth in Revenue. In the last year, the Revenue has grown by 0.12%.
  • The Revenue has been growing slightly by 4.43% on average over the past years.
EPS 1Y (TTM)-11.13%
EPS 3Y-12.46%
EPS 5Y1.19%
EPS Q2Q%4.55%
Revenue 1Y (TTM)0.12%
Revenue growth 3Y0.85%
Revenue growth 5Y4.43%
Sales Q2Q%-1.11%

3.2 Future

  • TNET is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.47% yearly.
  • The Revenue is expected to decrease by -38.51% on average over the next years. This is quite bad
EPS Next Y-8.05%
EPS Next 2Y0.4%
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
TNET Yearly Revenue VS EstimatesTNET Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 5B
TNET Yearly EPS VS EstimatesTNET Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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7

4. TNET Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 8.00, which indicates a rather cheap valuation of TNET.
  • Compared to the rest of the industry, the Price/Earnings ratio of TNET indicates a rather cheap valuation: TNET is cheaper than 87.21% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of TNET to the average of the S&P500 Index (26.17), we can say TNET is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 8.70, the valuation of TNET can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, TNET is valued cheaper than 86.05% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, TNET is valued rather cheaply.
Industry RankSector Rank
PE 8
Fwd PE 8.7
TNET Price Earnings VS Forward Price EarningsTNET Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 84.88% of the companies in the same industry are more expensive than TNET, based on the Enterprise Value to EBITDA ratio.
  • 84.88% of the companies in the same industry are more expensive than TNET, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.61
EV/EBITDA 6.46
TNET Per share dataTNET EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80 100

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)6.73
EPS Next 2Y0.4%
EPS Next 3Y1.72%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TNET Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.05%, TNET has a reasonable but not impressive dividend return.
  • The stock price of TNET dropped by -33.88% 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 1.86, TNET pays a better dividend. On top of this TNET pays more dividend than 84.88% of the companies listed in the same industry.
  • TNET's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 3.05%

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
TNET Yearly Dividends per shareTNET Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.2 0.4 0.6 0.8 1

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 2Y0.4%
EPS Next 3Y1.72%
TNET Yearly Income VS Free CF VS DividendTNET Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M
TNET Dividend Payout.TNET Dividend Payout, showing the Payout Ratio.TNET Dividend Payout.PayoutRetained Earnings

More info and screens

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TNET Fundamentals: All Metrics, Ratios and Statistics

TRINET GROUP INC

NYSE:TNET (4/6/2026, 1:34:58 PM)

37.66

-0.14 (-0.37%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-12
Earnings (Next)04-24
Inst Owners96.12%
Inst Owner Change0%
Ins Owners0.95%
Ins Owner Change22.53%
Market Cap1.78B
Revenue(TTM)5.01B
Net Income(TTM)155.00M
Analysts75.38
Price Target58.91 (56.43%)
Short Float %4.07%
Short Ratio3.18
Dividend
Industry RankSector Rank
Dividend Yield 3.05%
Yearly Dividend1.07
Dividend Growth(5Y)N/A
DP33.55%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-01
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)0%
PT rev (3m)-17.97%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-8.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-14.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.51%
Valuation
Industry RankSector Rank
PE 8
Fwd PE 8.7
P/S 0.36
P/FCF 7.61
P/OCF 5.88
P/B 32.99
P/tB N/A
EV/EBITDA 6.46
EPS(TTM)4.71
EY12.51%
EPS(NY)4.33
Fwd EY11.5%
FCF(TTM)4.95
FCFY13.14%
OCF(TTM)6.41
OCFY17.01%
SpS105.92
BVpS1.14
TBVpS-11.84
PEG (NY)N/A
PEG (5Y)6.73
Graham Number11
Profitability
Industry RankSector 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 RankSector 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 1.55
F-Score6
WACC7.31%
ROIC/WACC2.66
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)-11.13%
EPS 3Y-12.46%
EPS 5Y1.19%
EPS Q2Q%4.55%
EPS Next Y-8.05%
EPS Next 2Y0.4%
EPS Next 3Y1.72%
EPS Next 5Y23.47%
Revenue 1Y (TTM)0.12%
Revenue growth 3Y0.85%
Revenue growth 5Y4.43%
Sales Q2Q%-1.11%
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 Year44.13%
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 -8.05% in the next year.