TriNet Group (TNET) AI Stock Analysis

• Market Cap: $3.60B
• Dividend Yield: 1.49%
• Average Volume (3M): 317.23K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.76
• Revenue Growth: 1.50%
• EPS Growth: -44.95%
• Country: US
• Employees: 343,025
• Sector: Industrials
• Sector Strength: 86
• Industry: Staffing & Employment Services
• EPS (TTM): 1.99
• Shares Outstanding: 48,399,166
• 10 Day Avg. Volume: 489,005
• 30 Day Avg. Volume: 317,226
• PEG Ratio: 1.21
• Price to Book (P/B): 5.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.44
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 4.79
• Enterprise Value/Ebitda: 2.51
• 1Y Price Target: $83.33
• Price Target Upside: 12.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: $84.00 ▲(12.96%Upside)

TriNet Group's overall stock score reflects strong financial performance and earnings call positivity, tempered by weak technical indicators. The company's commitment to dividends and strategic initiatives offers optimism, but high leverage and bearish momentum present cautionary flags.

Positive Factors

Expense Management

Strong expense discipline contributed to beats in both adjusted EBITDA and adjusted EPS.

Financial Performance

TriNet's first-quarter net revenue of $350 million came in $11 million above estimates, driven by upside in net insurance services revenues and interest income.

Leadership and Strategy

Investor meetings with TriNet's top executives indicate active engagement and transparency with stakeholders.

Negative Factors

Client Confidence

Confidence declined within TriNet's SMB client base, leading to net CIE and new sales conversion falling below expectations.

Market Valuation

Shares are expected to remain range-bound due to fair valuation and macro risks.

Sales Challenges

Increasing macro uncertainty is impacting sales conversions and resulting in lower net client hiring.

TriNet Group Business Overview & Revenue Model

Company Description

TriNet Group, Inc. provides human resources (HR) solutions, payroll services, employee benefits, and employment risk mitigation services for small and midsize businesses in the United States. The company offers multi-state payroll processing and tax administration; employee benefits programs, including health insurance and retirement plans; workers compensation insurance and claims management; employment and benefits law compliance; and other HR related services. It serves clients in various industries, including technology, professional services, financial services, life sciences, not-for-profit, property management, retail, manufacturing, and hospitality. The company sells its solutions through its direct sales organization. TriNet Group, Inc. was incorporated in 1988 and is headquartered in Dublin, California.

How the Company Makes Money

TriNet Group makes money primarily through its PEO services, where it charges clients a fee per employee for its comprehensive HR solutions. This fee is an all-inclusive rate that covers payroll processing, access to employee benefits, risk mitigation, and compliance services. Additionally, TriNet earns revenue from its insurance offerings, where it benefits from the difference between premiums charged to clients and the costs incurred. The company also forms strategic partnerships with insurance carriers and benefits providers to enhance its service offerings, thereby attracting and retaining more clients. These partnerships contribute significantly to its revenue by broadening the spectrum of benefits and services available to clients.

TriNet Group Financial Statement Overview

Summary

TriNet Group demonstrates strong revenue growth and operational efficiency, with an impressive EBIT margin. However, high leverage and low equity levels pose risks, and there is a need to improve cash earnings and equity.

Income Statement

TriNet Group exhibits solid profitability with a consistently high gross profit margin of approximately 38.3% in TTM (Trailing-Twelve-Months). While the net profit margin has decreased slightly to 3.3% compared to previous periods, the company's revenue has shown steady growth, increasing by approximately 0.6% from 2024 to TTM. The EBIT margin has improved significantly to 26.5%, indicating efficient operational management. However, the EBITDA margin has seen a decrease to 7.0%, suggesting some challenges in maintaining cash earnings. Overall, the income statement reflects strong revenue generation and operational efficiency, but with a need for improvement in cash earnings.

Balance Sheet

The balance sheet shows a precarious equity position with a debt-to-equity ratio of 0.57 in TTM, indicating high leverage. Stockholders' equity has drastically decreased, affecting the equity ratio, which stands at only 1.7%. The return on equity is extremely high at 265.1%, primarily due to the low equity base, which could pose a risk if not managed carefully. Overall, the balance sheet suggests a leveraged position with a potential risk due to low equity levels.

Cash Flow

TriNet's cash flow statement is strong, with a significant operating cash flow to net income ratio of 2.97 in TTM, signaling efficient cash conversion. The free cash flow to net income ratio is robust at 2.62, indicating substantial free cash flow generation relative to net income. However, the free cash flow growth rate has slowed compared to previous periods. The cash flow analysis highlights strong liquidity and cash generation capabilities, although growth in free cash flow could be more dynamic.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.08B	5.05B	4.92B	4.88B	4.54B	4.03B
Gross Profit	934.00M	952.00M	1.10B	1.12B	937.00M	793.00M
EBITDA	357.00M	363.00M	662.00M	610.00M	520.00M	446.00M
Net Income	167.00M	173.00M	375.00M	355.00M	338.00M	272.00M
Balance Sheet
Total Assets	3.77B	4.12B	3.69B	3.44B	3.31B	3.04B
Cash, Cash Equivalents and Short-Term Investments	349.00M	360.00M	352.00M	430.00M	747.00M	358.00M
Total Debt	1.02B	1.02B	1.14B	552.00M	547.00M	430.00M
Total Liabilities	3.71B	4.05B	3.62B	2.67B	2.43B	2.44B
Stockholders Equity	63.00M	69.00M	78.00M	775.00M	881.00M	607.00M
Cash Flow
Free Cash Flow	437.00M	281.00M	470.00M	506.00M	178.00M	510.00M
Operating Cash Flow	496.00M	279.00M	545.00M	562.00M	218.00M	546.00M
Investing Cash Flow	192.00M	153.00M	-70.00M	-226.00M	-135.00M	-151.00M
Financing Cash Flow	-671.00M	-207.00M	-546.00M	-536.00M	12.00M	-208.00M

TriNet Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 74.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNET, the sentiment is Negative. The current price of 74.36 is below the 20-day moving average (MA) of 76.42, below the 50-day MA of 79.40, and below the 200-day MA of 84.86, indicating a bearish trend. The MACD of -1.89 indicates Positive momentum. The RSI at 41.28 is Neutral, neither overbought nor oversold. The STOCH value of 60.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TNET.

TriNet Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	78 Outperform	$3.84B	16.08	13.49%	2.57%	-1.23%	44.06%
BBSI	77 Outperform	$1.10B	21.91	25.86%	0.75%	8.41%	7.93%
Sector *	68 Neutral	£2.95B	10.28	8.40%	3.21%	2.87%	-9.95%
TNET	63 Neutral	$3.60B	22.19	162.14%	1.49%	1.50%	-44.95%
RHI	61 Neutral	$4.38B	21.40	14.49%	5.48%	-7.81%	-40.22%
NSP	57 Neutral	$2.31B	37.12	48.65%	3.89%	1.90%	-60.33%
MAN	57 Neutral	$2.05B	19.20	5.19%	3.27%	-5.52%	133.51%

TriNet Group Corporate Events

TriNet Group Announces Quarterly Dividend Approval

On June 12, 2025, TriNet Group, Inc. announced that its Board of Directors approved a quarterly dividend of $0.275 per share of the company’s common stock. The record and ex-dividend date is set for July 1, 2025, with the payout scheduled for July 28, 2025. This announcement reflects TriNet’s commitment to providing value to its shareholders and may enhance its attractiveness to investors, reinforcing its position in the human resources solutions industry.

The most recent analyst rating on (TNET) stock is a Sell with a $103.00 price target. To see the full list of analyst forecasts on TriNet Group stock, see the TNET Stock Forecast page.

TriNet Group Holds Annual Stockholders Meeting

On May 22, 2025, TriNet Group, Inc. held its Annual Meeting of Stockholders where four proposals were voted on. The stockholders elected three directors to serve until 2028, approved executive compensation on an advisory basis, and ratified Deloitte & Touche LLP as the independent auditor for 2025. These decisions reflect continued support for the company’s leadership and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (TNET) stock is a Sell with a $103.00 price target. To see the full list of analyst forecasts on TriNet Group stock, see the TNET Stock Forecast page.