TRINET GROUP INC (TNET) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TNET • US8962881079
45.26 USD
-6.17 (-12%)
At close: Feb 11, 2026
45.26 USD
0 (0%)
After Hours: 2/11/2026, 8:04:00 PM
TNET gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 89 industry peers in the Professional Services industry. Both the profitability and the financial health of TNET get a neutral evaluation. Nothing too spectacular is happening here. TNET scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes TNET very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year TNET was profitable.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.88%, TNET is in line with its industry, outperforming 58.43% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 120.91%, TNET belongs to the top of the industry, outperforming 98.88% of the companies in the same industry.
- TNET's Return On Invested Capital of 18.35% is amongst the best of the industry. TNET outperforms 86.52% 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 12.01%.
- 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 51.69% of the companies in the same industry.
- In the last couple of years the Profit Margin of TNET has declined.
- TNET has a Operating Margin of 5.66%. This is comparable to the rest of the industry: TNET outperforms 55.06% of its industry peers.
- TNET's Operating Margin has been stable in the last couple of years.
- The Gross Margin of TNET (17.68%) is worse than 74.16% of its industry peers.
- TNET's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TNET is creating value.
- The number of shares outstanding for TNET has been reduced compared to 1 year ago.
- The number of shares outstanding for TNET has been reduced compared to 5 years ago.
- TNET has a better debt/assets ratio than last year.
2.2 Solvency
- TNET has an Altman-Z score of 1.87. This is not the best score and indicates that TNET is in the grey zone with still only limited risk for bankruptcy at the moment.
- TNET's Altman-Z score of 1.87 is in line compared to the rest of the industry. TNET outperforms 44.94% of its industry peers.
- TNET has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
- TNET has a better Debt to FCF ratio (1.23) than 77.53% of its industry peers.
- A Debt/Equity ratio of 8.14 is on the high side and indicates that TNET has dependencies on debt financing.
- TNET has a Debt to Equity ratio of 8.14. This is amonst the worse of the industry: TNET underperforms 84.27% of its industry peers.
- 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 | 1.87 |
ROIC/WACC2.39
WACC7.68%
2.3 Liquidity
- A Current Ratio of 1.11 indicates that TNET should not have too much problems paying its short term obligations.
- TNET has a worse Current ratio (1.11) than 66.29% of its industry peers.
- TNET has a Quick Ratio of 1.11. This is a normal value and indicates that TNET is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.11, TNET is not doing good in the industry: 66.29% of the companies in the same industry are doing better.
| 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.
- Measured over the past years, TNET shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.74% on average per year.
- TNET shows a small growth in Revenue. In the last year, the Revenue has grown by 1.35%.
- 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
- The Earnings Per Share is expected to grow by 17.99% on average over the next years. This is quite good.
- The Revenue is expected to grow by 3.00% on average over the next years.
EPS Next Y-9.84%
EPS Next 2Y-2.59%
EPS Next 3Y2.29%
EPS Next 5Y17.99%
Revenue Next Year1.06%
Revenue Next 2Y1.67%
Revenue Next 3Y3%
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. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 9.65, the valuation of TNET can be described as very reasonable.
- Based on the Price/Earnings ratio, TNET is valued cheaply inside the industry as 83.15% of the companies are valued more expensively.
- TNET's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.23.
- Based on the Price/Forward Earnings ratio of 9.00, the valuation of TNET can be described as reasonable.
- Based on the Price/Forward Earnings ratio, TNET is valued cheaply inside the industry as 82.02% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 28.01. TNET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TNET is valued cheaper than 82.02% 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 98.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.98 | ||
| EV/EBITDA | 8.6 |
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)0.99
EPS Next 2Y-2.59%
EPS Next 3Y2.29%
5. Dividend
5.1 Amount
- TNET has a Yearly Dividend Yield of 1.97%.
- TNET's Dividend Yield is rather good when compared to the industry average which is at 1.43. TNET pays more dividend than 80.90% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.79, TNET has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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 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-2.59%
EPS Next 3Y2.29%
45.26
-6.17 (-12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-12 2026-02-12/bmo
Inst Owners97.02%
Inst Owner Change-1.1%
Ins Owners0.97%
Ins Owner Change2.53%
Market Cap2.17B
Revenue(TTM)5.04B
Net Income(TTM)133.00M
Analysts75.38
Price Target71.81 (58.66%)
Short Float %4.84%
Short Ratio6.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend0.74
Dividend Growth(5Y)N/A
DP38.35%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-02 2026-01-02 (0.275)
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)0%
PT rev (3m)-9.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.58%
EPS NY rev (1m)0%
EPS NY rev (3m)9.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 9 | ||
| P/S | 0.43 | ||
| P/FCF | 2.98 | ||
| P/OCF | 2.72 | ||
| P/B | 19.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.6 |
EPS(TTM)4.69
EY10.36%
EPS(NY)5.03
Fwd EY11.11%
FCF(TTM)15.18
FCFY33.54%
OCF(TTM)16.61
OCFY36.71%
SpS104.91
BVpS2.29
TBVpS-10.45
PEG (NY)N/A
PEG (5Y)0.99
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 | 1.87 |
F-Score7
WACC7.68%
ROIC/WACC2.39
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-9.84%
EPS Next 2Y-2.59%
EPS Next 3Y2.29%
EPS Next 5Y17.99%
Revenue 1Y (TTM)1.35%
Revenue growth 3Y3.63%
Revenue growth 5Y5.56%
Sales Q2Q%-0.4%
Revenue Next Year1.06%
Revenue Next 2Y1.67%
Revenue Next 3Y3%
Revenue Next 5YN/A
EBIT growth 1Y-17.87%
EBIT growth 3Y-9.98%
EBIT growth 5Y4.69%
EBIT Next Year6.47%
EBIT Next 3Y6.62%
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 6 / 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.
What is the profitability of TNET stock?
TRINET GROUP INC (TNET) has a profitability rating of 6 / 10.
How financially healthy is TRINET GROUP INC?
The financial health rating of TRINET GROUP INC (TNET) is 6 / 10.
Can you provide the dividend sustainability for TNET stock?
The dividend rating of TRINET GROUP INC (TNET) is 4 / 10 and the dividend payout ratio is 38.35%.