(TNET) TriNet - Overview
Sector: Industrials | Industry: Staffing & Employment Services | Exchange: NYSE (USA) | Market Cap: 1.966m USD | Total Return: -43.2% in 12m
Avg Turnover: 19.0M
EPS Trend: -88.6%
Qual. Beats: 1
Rev. Trend: 58.7%
Qual. Beats: 0
Warnings
Altman Z'' 0.04 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
TriNet Group, Inc. (TNET) is a Professional Employer Organization (PEO) providing human capital management solutions to small and medium-sized businesses across the United States. Its core offerings include payroll processing, tax administration, employee benefits, and compliance management, delivered through a proprietary digital platform. The company operates under a co-employment model, allowing clients to outsource HR liabilities and gain access to large-group insurance rates typically unavailable to smaller firms.
The business serves high-growth industries such as technology, life sciences, and financial services, utilizing a direct sales force to acquire clients. The human resource services sector is characterized by high recurring revenue and high switching costs due to the complexity of integrating payroll and benefits systems. For a deeper look at the companys valuation and performance metrics, consider reviewing the data on ValueRay.
Headquartered in Dublin, California, and incorporated in 1988, TriNet provides integrated workforce analytics and reporting tools. These tools enable clients to manage the full employee lifecycle, from onboarding and performance tracking to compensation and expense management.
- White-collar employment levels in technology and financial services drive service fee revenue
- Fluctuations in healthcare utilization rates impact professional employer organization insurance margins
- SMB hiring trends and retention rates dictate payroll processing volume growth
- Changes in federal and state employment regulations increase demand for compliance services
- Interest rate volatility affects investment income earned on client funds held in escrow
| Net Income: 159.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -1.93 > 1.0 |
| NWC/Revenue: 5.22% < 20% (prev 4.14%; Δ 1.08% < -1%) |
| CFO/TA 0.10 > 3% & CFO 357.0m > Net Income 159.0m |
| Net Debt (656.0m) to EBITDA (385.0m): 1.70 < 3 |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (47.0m) vs 12m ago -4.08% < -2% |
| Gross Margin: 17.68% > 18% (prev 0.19%; Δ 1.75k% > 0.5%) |
| Asset Turnover: 137.4% > 50% (prev 135.0%; Δ 2.38% > 0%) |
| Interest Coverage Ratio: 5.20 > 6 (EBITDA TTM 385.0m / Interest Expense TTM 55.0m) |
| A: 0.08 (Total Current Assets 2.48b - Total Current Liabilities 2.23b) / Total Assets 3.42b |
| B: -0.31 (Retained Earnings -1.07b / Total Assets 3.42b) |
| C: 0.08 (EBIT TTM 286.0m / Avg Total Assets 3.60b) |
| D: 0.02 (Book Value of Equity 83.0m / Total Liabilities 3.34b) |
| Altman-Z'' = 0.04 = B |
| DSRI: 0.95 (Receivables 458.0m/499.0m, Revenue 4.94b/5.10b) |
| GMI: 1.08 (GM 17.68% / 19.03%) |
| AQI: 1.09 (AQ_t 0.26 / AQ_t-1 0.23) |
| SGI: 0.97 (Revenue 4.94b / 5.10b) |
| TATA: -0.06 (NI 159.0m - CFO 357.0m) / TA 3.42b) |
| Beneish M = -3.03 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 45.68 with a total of 451,269 shares traded.
Over the past week, the price has changed by +9.20%,
over one month by +6.60%,
over three months by +20.92% and
over the past year by -43.23%.
TriNet has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold TNET.
- StrongBuy: 2
- Buy: 0
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 50.6 | 10.8% |
P/E Trailing = 12.6568
P/E Forward = 7.9239
P/S = 0.4027
P/B = 23.6809
P/EG = 7.216
Revenue TTM = 4.94b USD
EBIT TTM = 286.0m USD
EBITDA TTM = 385.0m USD
Long Term Debt = 896.0m USD (from longTermDebt, last quarter)
Short Term Debt = 11.0m USD (from shortTermDebt, last quarter)
Debt = 996.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 50.0m
Net Debt = 656.0m USD (calculated: Debt 996.0m - CCE 340.0m)
Enterprise Value = 2.62b USD (1.97b + Debt 996.0m - CCE 340.0m)
Interest Coverage Ratio = 5.20 (Ebit TTM 286.0m / Interest Expense TTM 55.0m)
EV/FCF = 7.94x (Enterprise Value 2.62b / FCF TTM 330.0m)
FCF Yield = 12.59% (FCF TTM 330.0m / Enterprise Value 2.62b)
FCF Margin = 6.67% (FCF TTM 330.0m / Revenue TTM 4.94b)
Net Margin = 3.22% (Net Income TTM 159.0m / Revenue TTM 4.94b)
Gross Margin = 17.68% ((Revenue TTM 4.94b - Cost of Revenue TTM 4.07b) / Revenue TTM)
Gross Margin QoQ = 23.08% (prev 12.42%)
Tobins Q-Ratio = 0.77 (Enterprise Value 2.62b / Total Assets 3.42b)
Interest Expense / Debt = 5.52% (Interest Expense 55.0m / Debt 996.0m)
Taxrate = 27.64% (34.0m / 123.0m)
NOPAT = 206.9m (EBIT 286.0m * (1 - 27.64%))
Current Ratio = 1.12 (Total Current Assets 2.48b / Total Current Liabilities 2.23b)
Debt / Equity = 12.0 (Debt 996.0m / totalStockholderEquity, last quarter 83.0m)
Debt / EBITDA = 1.70 (Net Debt 656.0m / EBITDA 385.0m)
Debt / FCF = 1.99 (Net Debt 656.0m / FCF TTM 330.0m)
Total Stockholder Equity = 88.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.42% (Net Income 159.0m / Total Assets 3.42b)
RoE = 13.77% (Net Income TTM 159.0m / Total Stockholder Equity 1.15b)
RoCE = 13.95% (EBIT 286.0m / Capital Employed (Equity 1.15b + L.T.Debt 896.0m))
RoIC = 17.94% (NOPAT 206.9m / Invested Capital 1.15b)
WACC = 5.99% (E(1.97b)/V(2.96b) * Re(7.0%) + D(996.0m)/V(2.96b) * Rd(5.52%) * (1-Tc(0.28)))
Discount Rate = 7.0% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -93.09 | Cagr: -3.57%
[DCF] Terminal Value 73.10% ; FCFF base≈372.8m ; Y1≈326.9m ; Y5≈264.1m
[DCF] Fair Price = 78.00 (EV 4.24b - Net Debt 656.0m = Equity 3.58b / Shares 45.9m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -88.61 | EPS CAGR: -17.86% | SUE: 2.03 | # QB: 1
Revenue Correlation: 58.69 | Revenue CAGR: 0.97% | SUE: 0.56 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.93 | Chg30d=-12.08% | Revisions=-60% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.81 | Chg30d=-18.14% | Revisions=-60% | Analysts=7
EPS current Year (2026-12-31): EPS=4.53 | Chg30d=+6.49% | Revisions=+45% | GrowthEPS=-4.1% | GrowthRev=+1.1%
EPS next Year (2027-12-31): EPS=4.83 | Chg30d=+3.48% | Revisions=+40% | GrowthEPS=+6.6% | GrowthRev=+2.2%
[Analyst] Revisions Ratio: -60%