TRINET GROUP INC (TNET)
US8962881079 - Common Stock
TNET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. TNET scores excellent on profitability, but there are some minor concerns on its financial health. TNET has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
TNET had positive earnings in the past year.
In the past year TNET had a positive cash flow from operations.
In the past 5 years TNET has always 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 7.05%, TNET is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
With an excellent Return On Equity value of 203.88%, TNET belongs to the best of the industry, outperforming 98.70% of the companies in the same industry.
The Return On Invested Capital of TNET (18.89%) is better than 84.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TNET is significantly above the industry average of 12.35%.
The 3 year average ROIC (24.44%) for TNET is well above the current ROIC(18.89%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 203.88% | ||
| ROIC | 18.89% |
ROA(3y)10.23%
ROA(5y)9.47%
ROE(3y)188.31%
ROE(5y)130.88%
ROIC(3y)24.44%
ROIC(5y)22.92%
1.3 Margins
With a decent Profit Margin value of 5.29%, TNET is doing good in the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Profit Margin of TNET has grown nicely.
TNET's Operating Margin of 6.98% is in line compared to the rest of the industry. TNET outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of TNET has grown nicely.
TNET's Gross Margin of 19.65% is on the low side compared to the rest of the industry. TNET is outperformed by 83.12% of its industry peers.
In the last couple of years the Gross Margin of TNET has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.98% | ||
| PM (TTM) | 5.29% | ||
| GM | 19.65% |
OM growth 3Y1.46%
OM growth 5Y5.87%
PM growth 3Y4.16%
PM growth 5Y6.81%
GM growth 3Y4.43%
GM growth 5Y3.39%
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.
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 worse debt/assets ratio than last year.
2.2 Solvency
TNET has an Altman-Z score of 2.13. 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 has a Altman-Z score of 2.13. This is in the lower half of the industry: TNET underperforms 66.23% of its industry peers.
TNET has a debt to FCF ratio of 4.62. This is a neutral value as TNET would need 4.62 years to pay back of all of its debts.
The Debt to FCF ratio of TNET (4.62) is comparable to the rest of the industry.
TNET has a Debt/Equity ratio of 8.28. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 8.28, TNET is not doing good in the industry: 93.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.28 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | 2.13 |
ROIC/WACC2.33
WACC8.12%
2.3 Liquidity
TNET has a Current Ratio of 1.07. This is a normal value and indicates that TNET is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TNET (1.07) is worse than 71.43% of its industry peers.
A Quick Ratio of 1.07 indicates that TNET should not have too much problems paying its short term obligations.
TNET has a Quick ratio of 1.07. This is in the lower half of the industry: TNET underperforms 70.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for TNET have decreased strongly by -10.90% in the last year.
TNET shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.79% yearly.
TNET shows a small growth in Revenue. In the last year, the Revenue has grown by 1.41%.
Measured over the past years, TNET shows a small growth in Revenue. The Revenue has been growing by 7.04% on average per year.
EPS 1Y (TTM)-10.9%
EPS 3Y20.35%
EPS 5Y20.79%
EPS Q2Q%-38.74%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y6.86%
Revenue growth 5Y7.04%
Sales Q2Q%1.23%
3.2 Future
TNET is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.78% yearly.
TNET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y-32.51%
EPS Next 2Y-15.64%
EPS Next 3Y-6.52%
EPS Next 5Y1.78%
Revenue Next Year1.08%
Revenue Next 2Y2.73%
Revenue Next 3Y3.86%
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 decreasing.
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 14.29, TNET is valued correctly.
81.82% of the companies in the same industry are more expensive than TNET, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.96. TNET is valued rather cheaply when compared to this.
TNET is valuated correctly with a Price/Forward Earnings ratio of 16.76.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TNET indicates a somewhat cheap valuation: TNET is cheaper than 61.04% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. TNET is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 16.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TNET is valued a bit cheaper than 72.73% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TNET indicates a somewhat cheap valuation: TNET is cheaper than 64.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.81 | ||
| EV/EBITDA | 12.59 |
4.3 Compensation for Growth
TNET has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TNET's earnings are expected to decrease with -6.52% in the coming years.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-15.64%
EPS Next 3Y-6.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, TNET has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.81, TNET pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.04, TNET pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
TNET is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y-15.64%
EPS Next 3Y-6.52%
TRINET GROUP INC
NYSE:TNET (11/21/2024, 8:04:00 PM)
After market: 92.31 0 (0%)92.31
-1.89 (-2.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.29 | ||
| Fwd PE | 16.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 203.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.98% | ||
| PM (TTM) | 5.29% | ||
| GM | 19.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-10.9%
EPS 3Y20.35%
EPS 5Y
EPS Q2Q%
EPS Next Y-32.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.41%
Revenue growth 3Y6.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y