TriNet Group (TNET) AI Stock Analysis

• Market Cap: $2.79B
• Dividend Yield: 1.93%
• Average Volume (3M): 353.37K
• Price to Earnings (P/E): 21.2
• 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: 1.12
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 4.52
• Enterprise Value/Ebitda: 10.20
• 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: 60 Neutral
• Price Target: $66.00 ▲(6.02% Upside)

TriNet's overall stock score is driven by strong earnings call performance and strategic initiatives, which offset some of the financial risks posed by high leverage and declining profit margins. The technical indicators suggest a bearish trend, while the valuation is moderate. The company's ability to manage operational challenges and leverage will be crucial for future performance.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand in the staffing industry, suggesting a solid market position and potential for future expansion.

Cash Flow Generation

Strong cash flow generation enhances liquidity and financial flexibility, enabling TriNet to invest in growth opportunities and manage debt effectively.

AI-Powered Suite Launch

The launch of AI capabilities can improve service delivery and operational efficiency, providing a competitive edge and enhancing customer satisfaction.

Negative Factors

High Leverage

High leverage increases financial risk and may limit the company's ability to invest in growth or weather economic downturns, impacting long-term stability.

Declining Profit Margins

Declining profit margins suggest increased cost pressures and operational inefficiencies, which could hinder profitability and competitiveness over time.

Retention Challenges

Decreased retention levels can affect revenue stability and customer loyalty, posing a challenge to maintaining a consistent client base.

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 across various sectors, including technology, healthcare, and professional services. The company offers a suite of services such as payroll processing, employee benefits, risk management, and compliance assistance, allowing businesses to focus on their core operations while outsourcing their HR needs. TriNet is known for its cloud-based platform that streamlines HR functions, providing clients with access to a wide range of resources and expertise.

How the Company Makes Money

TriNet generates revenue primarily through its Professional Employer Organization (PEO) model, where it partners with clients to co-employ their workforce. The company charges a fee based on a percentage of the total payroll, which includes various services like payroll processing, employee benefits management, and risk mitigation. Key revenue streams include service fees from PEO clients, fees for additional HR services, and commissions from insurance products offered to clients. TriNet also benefits from economies of scale and strategic partnerships with insurance carriers and technology providers, which enhance its service offerings and competitiveness in the market.

TriNet Group Financial Statement Overview

Summary

TriNet Group shows strong revenue growth and cash flow generation, which are positive indicators of business expansion and liquidity. However, declining profit margins and high leverage pose significant risks to financial stability. The company needs to address operational inefficiencies and manage its debt levels to improve overall financial health.

Income Statement

TriNet Group's revenue growth is strong at 23.7% TTM, indicating robust demand in the staffing industry. However, the gross profit margin has declined to 17.8% TTM from 22.3% in 2023, suggesting increased cost pressures. The net profit margin has also decreased to 2.8% TTM, reflecting challenges in maintaining profitability. The negative EBIT margin of -4.8% TTM is concerning, indicating operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is extremely high at 9.67 TTM, indicating significant leverage and potential financial risk. The return on equity has dropped to 1.57% TTM, reflecting reduced profitability for shareholders. The equity ratio of 2.9% TTM suggests a low proportion of equity financing, increasing vulnerability to financial instability.

Cash Flow

TriNet Group's free cash flow growth is impressive at 49.7% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 4.82 TTM suggests efficient cash conversion. However, the free cash flow to net income ratio of 0.94 TTM indicates that most of the net income is being converted into free cash flow, which is positive for liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.07B	5.05B	4.92B	4.88B	4.54B	4.03B
Gross Profit	689.00M	952.00M	1.10B	1.12B	937.00M	793.00M
EBITDA	305.00M	363.00M	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	48.00M	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	782.00M	281.00M	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: Negative
• Last Price: 62.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 62.25 is above the 20-day moving average (MA) of 60.54, below the 50-day MA of 64.78, and below the 200-day MA of 72.98, indicating a bearish trend. The MACD of -2.13 indicates Positive momentum. The RSI at 32.29 is Neutral, neither overbought nor oversold. The STOCH value of 11.06 is Positive, 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
PAYX	71 Outperform	$40.60B	25.31	41.27%	3.77%	9.08%	-5.00%
ADP	70 Outperform	$104.98B	25.60	70.57%	2.42%	7.07%	8.32%
BBSI	65 Neutral	$1.03B	19.80	24.08%	0.92%	9.64%	9.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TNET	60 Neutral	$2.79B	21.19	111.30%	1.93%	0.99%	-47.02%
RHI	60 Neutral	$2.63B	16.89	11.27%	8.66%	-7.27%	-43.88%
NSP	47 Neutral	$1.28B	77.05	16.04%	7.04%	3.19%	-86.21%

TriNet Group Corporate Events

TriNet Group Reports Q3 2025 Earnings and Reaffirms Guidance

TriNet Group, Inc. is a leading provider of comprehensive human resources solutions tailored for small and medium-sized businesses, offering services such as payroll, employee benefits, and compliance consulting. In its latest earnings report for the third quarter of 2025, TriNet announced a total revenue of $1.2 billion, marking a slight decrease of 2% compared to the same period last year. Despite facing a challenging SMB business environment, the company achieved its highest ever customer net promoter score and maintained customer retention above historical averages.

TriNet’s Q3 Earnings Call: Strategic Wins Amid Challenges

TriNet’s recent earnings call for the third quarter of 2025 reflected a balanced sentiment of optimism and caution. The company demonstrated strong financial adjustments and strategic initiatives, notably in AI implementation and expense reduction. However, it faced challenges with WSE volumes, healthcare costs, and retention, which posed significant obstacles to its growth trajectory.

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.

The most recent analyst rating on (TNET) stock is a Hold with a $64.00 price target. To see the full list of analyst forecasts on TriNet Group stock, see the TNET Stock Forecast page.

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.

The most recent analyst rating on (TNET) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on TriNet Group stock, see the TNET Stock Forecast page.