TRINET GROUP INC (TNET) Stock Fundamental Analysis

NYSE:TNET • US8962881079

38.48 USD
-4.2 (-9.84%)
At close: Feb 20, 2026
38.48 USD
0 (0%)
After Hours: 2/20/2026, 8:07:44 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall TNET gets a fundamental rating of 5 out of 10. We evaluated TNET against 88 industry peers in the Professional Services industry. TNET has an average financial health and profitability rating. TNET is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year TNET was profitable.
  • TNET had a positive operating cash flow in the past year.
  • Of the past 5 years TNET 4 years were profitable.
  • TNET had a positive operating cash flow in 4 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 0 200M 400M 600M

1.2 Ratios

  • TNET has a Return On Assets (3.88%) which is in line with its industry peers.
  • Looking at the Return On Equity, with a value of 120.91%, TNET belongs to the top of the industry, outperforming 98.86% of the companies in the same industry.
  • TNET has a better Return On Invested Capital (18.35%) than 84.09% 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 12.55%.
  • The 3 year average ROIC (25.86%) for TNET is well above the current ROIC(18.35%). The reason for the recent decline needs to be investigated.
Industry RankSector 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%
TNET Yearly ROA, ROE, ROICTNET Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 100 200 300 400

1.3 Margins

  • With a Profit Margin value of 2.64%, TNET perfoms like the industry average, outperforming 48.86% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TNET has declined.
  • The Operating Margin of TNET (5.66%) is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of TNET has remained more or less at the same level.
  • TNET has a worse Gross Margin (17.68%) than 75.00% of its industry peers.
  • In the last couple of years the Gross Margin of TNET has remained more or less at the same level.
Industry RankSector 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%
TNET Yearly Profit, Operating, Gross MarginsTNET Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
  • There is no outstanding debt for TNET. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
TNET Yearly Shares OutstandingTNET Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 1B 2B 3B 4B

2.2 Solvency

  • Based on the Altman-Z score of 1.76, we must say that TNET is in the distress zone and has some risk of bankruptcy.
  • TNET has a Altman-Z score (1.76) which is comparable to the rest of the 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's Debt to FCF ratio of 1.23 is fine compared to the rest of the industry. TNET outperforms 76.14% 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's Debt to Equity ratio of 8.14 is on the low side compared to the rest of the industry. TNET is outperformed by 86.36% of its industry peers.
  • Although TNET does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 8.14
Debt/FCF 1.23
Altman-Z 1.76
ROIC/WACC2.48
WACC7.39%
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 0 200M 400M 600M 800M

2.3 Liquidity

  • TNET has a Current 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.
  • TNET has a Current ratio of 1.11. This is in the lower half of the industry: TNET underperforms 68.18% 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.
  • TNET's Quick ratio of 1.11 is on the low side compared to the rest of the industry. TNET is outperformed by 68.18% of its industry peers.
Industry RankSector Rank
Current Ratio 1.11
Quick Ratio 1.11
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 1B 2B 3B

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

2

3. Growth

3.1 Past

  • TNET shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.13%.
  • The Earnings Per Share has been growing slightly by 1.19% 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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
  • Based on estimates for the next years, TNET will show a very negative growth in Revenue. The Revenue will decrease by -38.51% on average per year.
EPS Next Y6.76%
EPS Next 2Y9.75%
EPS Next 3Y21.54%
EPS Next 5Y23.47%
Revenue Next Year-2.9%
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.
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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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 8.17, the valuation of TNET can be described as very reasonable.
  • Based on the Price/Earnings ratio, TNET is valued cheaply inside the industry as 88.64% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.99, TNET is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 7.65, the valuation of TNET can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, TNET is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
  • TNET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.02.
Industry RankSector Rank
PE 8.17
Fwd PE 7.65
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

  • Based on the Enterprise Value to EBITDA ratio, TNET is valued cheaper than 84.09% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, TNET is valued cheaper than 98.86% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.54
EV/EBITDA 6.84
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

  • TNET's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • TNET has a very decent profitability rating, which may justify a higher PE ratio.
  • TNET's earnings are expected to grow with 21.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)6.88
EPS Next 2Y9.75%
EPS Next 3Y21.54%

More info and screens

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

4

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.59%, TNET has a reasonable but not impressive dividend return.
  • In the last 3 months the price of TNET has falen by -33.39%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 1.55, TNET pays a better dividend. On top of this TNET pays more dividend than 82.95% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, TNET pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.59%

5.2 History

  • TNET has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
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

  • 38.35% of the earnings are spent on dividend by TNET. This is a low number and sustainable payout ratio.
DP38.35%
EPS Next 2Y9.75%
EPS Next 3Y21.54%
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 0 200M 400M
TNET Dividend Payout.TNET Dividend Payout, showing the Payout Ratio.TNET Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

TRINET GROUP INC

NYSE:TNET (2/20/2026, 8:07:44 PM)

After market: 38.48 0 (0%)

38.48

-4.2 (-9.84%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-12
Earnings (Next)04-23
Inst Owners97.02%
Inst Owner Change-0.57%
Ins Owners0.97%
Ins Owner Change2.94%
Market Cap1.85B
Revenue(TTM)N/A
Net Income(TTM)133.00M
Analysts75.38
Price Target71.81 (86.62%)
Short Float %3.76%
Short Ratio4.05
Dividend
Industry RankSector Rank
Dividend Yield 2.59%
Yearly Dividend0.74
Dividend Growth(5Y)N/A
DP38.35%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-02
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)0.28%
PT rev (3m)-9.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)0%
EPS NY rev (3m)4.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
Industry RankSector Rank
PE 8.17
Fwd PE 7.65
P/S 0.37
P/FCF 2.54
P/OCF 2.32
P/B 16.8
P/tB N/A
EV/EBITDA 6.84
EPS(TTM)4.71
EY12.24%
EPS(NY)5.03
Fwd EY13.07%
FCF(TTM)15.18
FCFY39.44%
OCF(TTM)16.61
OCFY43.18%
SpS104.91
BVpS2.29
TBVpS-10.45
PEG (NY)1.21
PEG (5Y)6.88
Graham Number15.58
Profitability
Industry RankSector 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 RankSector 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 1.76
F-Score7
WACC7.39%
ROIC/WACC2.48
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)-11.13%
EPS 3Y-12.46%
EPS 5Y1.19%
EPS Q2Q%4.55%
EPS Next Y6.76%
EPS Next 2Y9.75%
EPS Next 3Y21.54%
EPS Next 5Y23.47%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.11%
Revenue Next Year-2.9%
Revenue Next 2Y-0.53%
Revenue Next 3Y-38.51%
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 5 / 10 to TNET.


What is the valuation status for TNET stock?

ChartMill assigns a valuation rating of 9 / 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 4 / 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%.