TriNet Group (TNET) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: 1.81%
• Average Volume (3M): 353.37K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.80
• Revenue Growth: 0.99%
• EPS Growth: -47.02%
• Country: US
• Employees: 343,025
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 1.11
• Shares Outstanding: 48,030,360
• 10 Day Avg. Volume: 333,211
• 30 Day Avg. Volume: 353,373
• PEG Ratio: -0.55
• Price to Book (P/B): 65.78
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 16.15
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 3.31
• Enterprise Value/Ebitda: 9.81
• 1Y Price Target: $67.00
• Price Target Upside: 7.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $59.00 ▼(-5.22% Downside)

TriNet's overall stock score is driven by stable financial performance and positive earnings call insights, despite technical weaknesses and moderate valuation. The company's strategic initiatives and shareholder returns provide a balanced outlook, but challenges in market conditions and profitability margins require attention.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates efficient operations and financial health, enabling TriNet to invest in growth opportunities and return capital to shareholders.

AI-Powered Suite Launch

The launch of AI capabilities enhances TriNet's service offerings, potentially improving customer satisfaction and operational efficiency, positioning the company for future growth.

Debt Reduction

Reducing debt levels improves financial stability and flexibility, allowing TriNet to better manage economic fluctuations and invest in strategic initiatives.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can hinder TriNet's ability to scale and compete, necessitating strategic adjustments to regain market momentum.

Retention Challenges

Decreased retention can impact long-term client relationships and revenue stability, requiring TriNet to address pricing and service quality issues.

Elevated Health Care Costs

Rising health care costs can pressure margins and profitability, necessitating cost management strategies to sustain financial performance.

TriNet Group Business Overview & Revenue Model

Company Description

TriNet Group, Inc. (TNET) is a leading provider of comprehensive human resources solutions for small and medium-sized businesses (SMBs) across various industries. The company specializes in offering a range of services including payroll processing, employee benefits, risk management, and HR consulting. TriNet's platform integrates technology and expert support to help businesses manage their workforce more effectively, allowing them to focus on their core operations while ensuring compliance and employee satisfaction.

How the Company Makes Money

TriNet generates revenue primarily through its Professional Employer Organization (PEO) model, where it charges clients a fee based on the number of employees and the services provided. Key revenue streams include payroll processing fees, employee benefits administration, and HR consulting services. Additionally, TriNet earns income from value-added services such as risk management and compliance support. The company often enters into strategic partnerships with insurance providers and technology platforms to enhance its service offerings and deliver more comprehensive solutions to clients, further driving its revenue growth.

TriNet Group Financial Statement Overview

Summary

TriNet Group shows a stable financial position with strong cash flow generation, despite challenges in revenue growth and profitability margins. The reduction in debt levels is positive, but improvements in return on equity and maintaining profitability margins are needed for long-term health.

Income Statement

TriNet Group's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data reveals a decline in revenue growth rate by 9.8%, indicating challenges in maintaining sales momentum. However, the company maintains a positive net profit margin of 2.62% and an EBIT margin of 4.65%, suggesting operational efficiency. The gross profit margin has decreased over time, which could impact future profitability if not addressed.

Balance Sheet

The balance sheet indicates a significant reduction in debt, with the TTM data showing a debt-to-equity ratio of 0.44, a substantial improvement from previous years. However, the return on equity has decreased to 1.52%, reflecting lower profitability relative to shareholder equity. The equity ratio remains low, suggesting potential vulnerability to financial instability.

Cash Flow

TriNet Group's cash flow statement is strong, with a notable free cash flow growth rate of 16.97% in the TTM period. The operating cash flow to net income ratio is healthy at 0.35, indicating efficient cash generation from operations. The free cash flow to net income ratio is nearly 1, showing that the company effectively converts its net income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.09B	5.05B	4.92B	4.88B	4.54B	4.03B
Gross Profit	940.00M	952.00M	1.10B	1.12B	937.00M	793.00M
EBITDA	317.00M	374.00M	662.00M	610.00M	520.00M	446.00M
Net Income	133.00M	173.00M	375.00M	355.00M	338.00M	272.00M
Balance Sheet
Total Assets	3.42B	4.12B	3.69B	3.44B	3.31B	3.04B
Cash, Cash Equivalents and Short-Term Investments	321.00M	360.00M	352.00M	430.00M	747.00M	358.00M
Total Debt	943.00M	1.02B	1.14B	552.00M	547.00M	430.00M
Total Liabilities	3.31B	4.05B	3.62B	2.67B	2.43B	2.44B
Stockholders Equity	110.00M	69.00M	78.00M	775.00M	881.00M	607.00M
Cash Flow
Free Cash Flow	765.00M	201.00M	470.00M	506.00M	178.00M	510.00M
Operating Cash Flow	797.00M	279.00M	545.00M	562.00M	218.00M	546.00M
Investing Cash Flow	151.00M	153.00M	-70.00M	-226.00M	-135.00M	-151.00M
Financing Cash Flow	-550.00M	-207.00M	-546.00M	-536.00M	12.00M	-208.00M

TriNet Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 62.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TNET, the sentiment is Neutral. The current price of 62.25 is above the 20-day moving average (MA) of 57.05, above the 50-day MA of 59.23, and below the 200-day MA of 69.81, indicating a neutral trend. The MACD of -0.33 indicates Negative momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TNET.

TriNet Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYX	73 Outperform	$41.55B	25.90	41.27%	3.66%	9.08%	-5.00%
ADP	70 Outperform	$107.62B	26.24	70.57%	2.37%	7.07%	8.32%
BBSI	66 Neutral	$937.09M	17.55	24.08%	0.88%	9.64%	9.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	60 Neutral	$2.80B	17.96	11.27%	8.53%	-7.27%	-43.88%
TNET	58 Neutral	$2.85B	21.65	111.30%	1.81%	0.99%	-47.02%
NSP	50 Neutral	$1.46B	87.38	16.04%	6.21%	3.19%	-86.21%

TriNet Group Corporate Events

TriNet Group Announces Quarterly Dividend for Shareholders

On December 11, 2025, TriNet Group, Inc. announced a quarterly dividend of $0.275 per share, with a record date of January 2, 2026, and a payout date of January 26, 2026. This announcement reflects TriNet’s ongoing commitment to delivering value to its shareholders and underscores its stable financial position, which could positively impact its market perception and stakeholder confidence.

TriNet Group Announces New CFO Appointment

TriNet Group announced a significant leadership transition with the appointment of Mala Murthy as the new Chief Financial Officer and Executive Vice-President, effective November 28, 2025. Murthy, who brings extensive experience from Teladoc Health and American Express, will replace Kelly Tuminelli, who will transition to a non-executive role until March 2026. The company also reported its third-quarter financial results, showing a 2% decrease in total revenues to $1.2 billion compared to the previous year, but reaffirmed its full-year 2025 guidance. Despite challenging conditions in the SMB business environment, TriNet achieved its highest-ever customer net promoter score and maintained customer retention above historical averages.

TriNet Group Declares Quarterly Dividend Announcement

On September 17, 2025, TriNet announced a quarterly dividend of $0.275 per share of its common stock, with a record and ex-dividend date set for October 1, 2025, and a payout date of October 27, 2025. This announcement reflects TriNet’s commitment to delivering shareholder value and may positively impact investor confidence in the company’s financial health and strategic direction.