TRINET GROUP INC (TNET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TNET - US8962881079 - Common Stock
58.06 USD
+0.72 (+1.26%)
58.06 USD
0 (0%)
Overall TNET gets a fundamental rating of 5 out of 10. We evaluated TNET against 87 industry peers in the Professional Services industry. TNET has only an average score on both its financial health and profitability. TNET has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TNET was profitable.
In the past year TNET had a positive cash flow from operations.
TNET had positive earnings in each of the past 5 years.
In the past 5 years TNET always reported a positive cash flow from operatings.
1.2 Ratios
TNET has a Return On Assets (3.88%) which is in line with its industry peers.
The Return On Equity of TNET (120.91%) is better than 98.85% of its industry peers.
TNET's Return On Invested Capital of 18.35% is amongst the best of the industry. TNET outperforms 86.21% of its industry peers.
TNET had an Average Return On Invested Capital over the past 3 years of 25.86%. This is significantly above the industry average of 12.17%.
The last Return On Invested Capital (18.35%) for TNET is well below the 3 year average (25.86%), which needs to be investigated, but indicates that TNET had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 120.91% | ||
| ROIC | 18.35% |
ROA(3y)8.22%
ROA(5y)8.76%
ROE(3y)259.1%
ROE(5y)172.1%
ROIC(3y)25.86%
ROIC(5y)24.72%
1.3 Margins
Looking at the Profit Margin, with a value of 2.64%, TNET is in line with its industry, outperforming 50.57% of the companies in the same industry.
In the last couple of years the Profit Margin of TNET has declined.
TNET's Operating Margin of 5.66% is in line compared to the rest of the industry. TNET outperforms 52.87% of its industry peers.
TNET's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 17.68%, TNET is not doing good in the industry: 77.01% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of TNET has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.66% | ||
| PM (TTM) | 2.64% | ||
| GM | 17.68% |
OM growth 3Y-13.14%
OM growth 5Y-0.82%
PM growth 3Y-22.81%
PM growth 5Y-9.04%
GM growth 3Y-2.99%
GM growth 5Y1.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TNET is creating value.
TNET has less shares outstanding than it did 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
An Altman-Z score of 1.92 indicates that TNET is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.92, TNET perfoms like the industry average, outperforming 40.23% of the companies in the same industry.
The Debt to FCF ratio of TNET is 1.23, which is an excellent value as it means it would take TNET, only 1.23 years of fcf income to pay off all of its debts.
TNET has a better Debt to FCF ratio (1.23) than 75.86% of its industry peers.
TNET has a Debt/Equity ratio of 8.14. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 8.14, TNET is not doing good in the industry: 86.21% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for TNET, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.14 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 1.92 |
ROIC/WACC2.44
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.11 indicates that TNET should not have too much problems paying its short term obligations.
The Current ratio of TNET (1.11) is worse than 68.97% of its industry peers.
A Quick Ratio of 1.11 indicates that TNET should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, TNET is doing worse than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for TNET have decreased strongly by -27.40% in the last year.
The Earnings Per Share has been growing by 9.74% on average over the past years. This is quite good.
The Revenue has been growing slightly by 1.35% in the past year.
TNET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.56% yearly.
EPS 1Y (TTM)-27.4%
EPS 3Y-2.17%
EPS 5Y9.74%
EPS Q2Q%-5.13%
Revenue 1Y (TTM)1.35%
Revenue growth 3Y3.63%
Revenue growth 5Y5.56%
Sales Q2Q%-0.4%
3.2 Future
Based on estimates for the next years, TNET will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.99% on average per year.
The Revenue is expected to decrease by -12.02% on average over the next years. This is quite bad
EPS Next Y-13.54%
EPS Next 2Y-2.25%
EPS Next 3Y2.56%
EPS Next 5Y17.99%
Revenue Next Year0.71%
Revenue Next 2Y1.93%
Revenue Next 3Y-12.02%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.38, TNET is valued correctly.
Based on the Price/Earnings ratio, TNET is valued cheaply inside the industry as 81.61% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.37, TNET is valued rather cheaply.
The Price/Forward Earnings ratio is 11.46, which indicates a very decent valuation of TNET.
TNET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TNET is cheaper than 79.31% 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 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 11.46 |
4.2 Price Multiples
TNET's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TNET is cheaper than 78.16% 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 95.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.83 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
TNET has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-2.25%
EPS Next 3Y2.56%
5. Dividend
5.1 Amount
TNET has a Yearly Dividend Yield of 1.88%.
TNET's Dividend Yield is rather good when compared to the industry average which is at 4.07. TNET pays more dividend than 81.61% of the companies in the same industry.
TNET's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
TNET does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
TNET pays out 38.35% of its income as dividend. This is a sustainable payout ratio.
DP38.35%
EPS Next 2Y-2.25%
EPS Next 3Y2.56%
58.06
+0.72 (+1.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners96.59%
Inst Owner Change-0.97%
Ins Owners0.81%
Ins Owner Change-1.31%
Market Cap2.79B
Revenue(TTM)5.04B
Net Income(TTM)133.00M
Analysts76.67
Price Target73.95 (27.37%)
Short Float %5.47%
Short Ratio6.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend0.74
Dividend Growth(5Y)N/A
DP38.35%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.06%
Min EPS beat(2)10.37%
Max EPS beat(2)39.76%
EPS beat(4)4
Avg EPS beat(4)36.68%
Min EPS beat(4)10.37%
Max EPS beat(4)74.88%
EPS beat(8)6
Avg EPS beat(8)21.08%
EPS beat(12)10
Avg EPS beat(12)38.17%
EPS beat(16)14
Avg EPS beat(16)42.97%
Revenue beat(2)0
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-0.96%
Max Revenue beat(2)-0.56%
Revenue beat(4)0
Avg Revenue beat(4)-0.91%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)-0.56%
Revenue beat(8)0
Avg Revenue beat(8)-1.44%
Revenue beat(12)0
Avg Revenue beat(12)-1.63%
Revenue beat(16)3
Avg Revenue beat(16)56.99%
PT rev (1m)-6.65%
PT rev (3m)-8.23%
EPS NQ rev (1m)21.43%
EPS NQ rev (3m)21.43%
EPS NY rev (1m)5.44%
EPS NY rev (3m)5.64%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 11.46 | ||
| P/S | 0.55 | ||
| P/FCF | 3.83 | ||
| P/OCF | 3.49 | ||
| P/B | 25.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.4 |
EPS(TTM)4.69
EY8.08%
EPS(NY)5.06
Fwd EY8.72%
FCF(TTM)15.18
FCFY26.14%
OCF(TTM)16.61
OCFY28.62%
SpS104.91
BVpS2.29
TBVpS-10.45
PEG (NY)N/A
PEG (5Y)1.27
Graham Number15.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.88% | ||
| ROE | 120.91% | ||
| ROCE | 24.23% | ||
| ROIC | 18.35% | ||
| ROICexc | 25.23% | ||
| ROICexgc | 88.78% | ||
| OM | 5.66% | ||
| PM (TTM) | 2.64% | ||
| GM | 17.68% | ||
| FCFM | 14.47% |
ROA(3y)8.22%
ROA(5y)8.76%
ROE(3y)259.1%
ROE(5y)172.1%
ROIC(3y)25.86%
ROIC(5y)24.72%
ROICexc(3y)36.08%
ROICexc(5y)36.99%
ROICexgc(3y)106.18%
ROICexgc(5y)88.16%
ROCE(3y)35.96%
ROCE(5y)33.74%
ROICexgc growth 3Y17.36%
ROICexgc growth 5Y22.61%
ROICexc growth 3Y-11.05%
ROICexc growth 5Y3.97%
OM growth 3Y-13.14%
OM growth 5Y-0.82%
PM growth 3Y-22.81%
PM growth 5Y-9.04%
GM growth 3Y-2.99%
GM growth 5Y1.21%
F-Score7
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.14 | ||
| Debt/FCF | 1.23 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 100% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 5.18 | ||
| Cash Conversion | 225.42% | ||
| Profit Quality | 548.12% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 1.92 |
F-Score7
WACC7.53%
ROIC/WACC2.44
Cap/Depr(3y)87.87%
Cap/Depr(5y)73.22%
Cap/Sales(3y)1.4%
Cap/Sales(5y)1.19%
Profit Quality(3y)127.49%
Profit Quality(5y)124.52%
High Growth Momentum
Growth
EPS 1Y (TTM)-27.4%
EPS 3Y-2.17%
EPS 5Y9.74%
EPS Q2Q%-5.13%
EPS Next Y-13.54%
EPS Next 2Y-2.25%
EPS Next 3Y2.56%
EPS Next 5Y17.99%
Revenue 1Y (TTM)1.35%
Revenue growth 3Y3.63%
Revenue growth 5Y5.56%
Sales Q2Q%-0.4%
Revenue Next Year0.71%
Revenue Next 2Y1.93%
Revenue Next 3Y-12.02%
Revenue Next 5YN/A
EBIT growth 1Y-17.87%
EBIT growth 3Y-9.98%
EBIT growth 5Y4.69%
EBIT Next Year0.45%
EBIT Next 3Y5.48%
EBIT Next 5Y16.07%
FCF growth 1Y95.97%
FCF growth 3Y4.13%
FCF growth 5Y-13.95%
OCF growth 1Y80.14%
OCF growth 3Y8.57%
OCF growth 5Y-9.94%
TRINET GROUP INC / TNET FAQ
What is the fundamental rating for TNET stock?
ChartMill assigns a fundamental rating of 5 / 10 to TNET.
Can you provide the valuation status for TRINET GROUP INC?
ChartMill assigns a valuation rating of 6 / 10 to TRINET GROUP INC (TNET). This can be considered as Fairly Valued.
What is the profitability of TNET stock?
TRINET GROUP INC (TNET) has a profitability rating of 6 / 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 -13.54% in the next year.
How sustainable is the dividend of TRINET GROUP INC (TNET) stock?
The dividend rating of TRINET GROUP INC (TNET) is 3 / 10 and the dividend payout ratio is 38.35%.