TRINET GROUP INC (TNET)
US8962881079 - Common Stock
TNET gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. While TNET has a great profitability rating, there are some minor concerns on its financial health. TNET has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
TNET had positive earnings in the past year.
TNET had a positive operating cash flow in the past year.
Each year in the past 5 years TNET has been profitable.
In the past 5 years TNET always reported a positive cash flow from operatings.
1.2 Ratios
TNET's Return On Assets of 8.44% is amongst the best of the industry. TNET outperforms 81.48% of its industry peers.
With an excellent Return On Equity value of 234.27%, TNET belongs to the best of the industry, outperforming 98.77% of the companies in the same industry.
TNET has a Return On Invested Capital of 22.25%. This is amongst the best in the industry. TNET outperforms 90.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TNET is significantly above the industry average of 11.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 234.27% | ||
| ROIC | 22.25% |
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
TNET has a Profit Margin of 6.78%. This is amongst the best in the industry. TNET outperforms 80.25% of its industry peers.
TNET's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.54%, TNET is doing good in the industry, outperforming 65.43% of the companies in the same industry.
TNET's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.54%, TNET is doing worse than 75.31% of the companies in the same industry.
TNET's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.54% | ||
| PM (TTM) | 6.78% | ||
| GM | 21.54% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TNET is creating value.
TNET has less shares outstanding than it did 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
An Altman-Z score of 2.17 indicates that TNET is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of TNET (2.17) is worse than 62.96% of its industry peers.
TNET has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as TNET would need 2.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.58, TNET is in the better half of the industry, outperforming 61.73% of the companies in the same industry.
TNET has a Debt/Equity ratio of 7.64. This is a high value indicating a heavy dependency on external financing.
TNET has a Debt to Equity ratio of 7.64. This is amonst the worse of the industry: TNET underperforms 96.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.64 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 2.17 |
ROIC/WACC2.73
WACC8.14%
2.3 Liquidity
A Current Ratio of 1.06 indicates that TNET should not have too much problems paying its short term obligations.
The Current ratio of TNET (1.06) is worse than 75.31% of its industry peers.
A Quick Ratio of 1.06 indicates that TNET should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.06, TNET is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
TNET shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.47%.
Measured over the past years, TNET shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.79% on average per year.
TNET shows a small growth in Revenue. In the last year, the Revenue has grown by 0.55%.
TNET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.04% yearly.
EPS 1Y (TTM)6.47%
EPS 3Y20.35%
EPS 5Y20.79%
EPS growth Q2Q-13.25%
Revenue 1Y (TTM)0.55%
Revenue growth 3Y6.86%
Revenue growth 5Y7.04%
Revenue growth Q2Q1.44%
3.2 Future
Based on estimates for the next years, TNET will show a small growth in Earnings Per Share. The EPS will grow by 1.78% on average per year.
Based on estimates for the next years, TNET will show a small growth in Revenue. The Revenue will grow by 5.47% on average per year.
EPS Next Y-12.4%
EPS Next 2Y-2.65%
EPS Next 3Y1.01%
EPS Next 5Y1.78%
Revenue Next Year2.25%
Revenue Next 2Y4.26%
Revenue Next 3Y5.47%
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.
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
Based on the Price/Earnings ratio of 14.02, the valuation of TNET can be described as correct.
80.25% of the companies in the same industry are more expensive than TNET, based on the Price/Earnings ratio.
TNET is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.17, the valuation of TNET can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TNET indicates a somewhat cheap valuation: TNET is cheaper than 70.37% of the companies listed in the same industry.
TNET is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 14.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TNET indicates a somewhat cheap valuation: TNET is cheaper than 74.07% of the companies listed in the same industry.
81.48% of the companies in the same industry are more expensive than TNET, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.39 | ||
| EV/EBITDA | 11.97 |
4.3 Compensation for Growth
TNET has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.67
EPS Next 2Y-2.65%
EPS Next 3Y1.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, TNET is not a good candidate for dividend investing.
TNET's Dividend Yield is a higher than the industry average which is at 1.99.
With a Dividend Yield of 0.97, TNET pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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
DP0%
EPS Next 2Y-2.65%
EPS Next 3Y1.01%
TRINET GROUP INC
NYSE:TNET (5/17/2024, 7:04:00 PM)
After market: 103.92 0 (0%)103.92
+0.73 (+0.71%)
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 Cap5.25B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 14.02 | ||
| Fwd PE | 14.17 | ||
| 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)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 234.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.54% | ||
| PM (TTM) | 6.78% | ||
| GM | 21.54% | ||
| 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 Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| 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)
Growth
EPS 1Y (TTM)6.47%
EPS 3Y20.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y-12.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.55%
Revenue growth 3Y6.86%
Revenue growth 5Y
Revenue growth 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