TriNet Group (TNET) AI Stock Analysis

• Market Cap: $3.21B
• Dividend Yield: 1.59%
• Average Volume (3M): 504.37K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.82
• Revenue Growth: 1.39%
• EPS Growth: -50.47%
• Country: US
• Employees: 343,025
• Sector: Industrials
• Sector Strength: 83
• Industry: Staffing & Employment Services
• EPS (TTM): 1.15
• Shares Outstanding: 48,589,930
• 10 Day Avg. Volume: 465,643
• 30 Day Avg. Volume: 504,374
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 4.33
• Enterprise Value/Ebitda: 9.43
• 1Y Price Target: $77.80
• Price Target Upside: 17.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: $77.00 ▲(16.67% Upside)

TriNet's overall score reflects strong financial performance and cash flow, offset by high leverage and mixed technical indicators. The valuation is moderate, with potential growth supported by strategic initiatives. The recent dividend approval adds to shareholder value, providing a balanced investment outlook.

Positive Factors

Earnings

TriNet's second-quarter net revenue exceeded estimates, driven by upside in net insurance services revenues and interest income.

Financial performance

Interest income came in above expectations due to a more favorable interest rate environment and higher than expected balances.

Guidance

Results were supportive of a reiterated full-year guidance, suggesting confidence in meeting future targets.

Negative Factors

Client growth

The year-over-year decline in co-employed WSEs was due to lower sales conversion and higher attrition, partly driven by increasing healthcare benefit costs.

Healthcare costs

Second-quarter insurance costs were slightly higher than expected due to a higher proportion of older health claims, presenting a one-time headwind to net insurance margin.

Valuation

Current valuation at 13x CY26E P/E viewed to be fairly full relative to muted near-term revenue & adj EPS growth expectations.

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 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 demonstrates strong revenue growth and operational efficiency, evidenced by a high EBIT margin. However, challenges exist with high leverage and low equity levels, which pose risks. Cash earnings need improvement despite strong cash flow generation.

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

TriNet Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 66.00
• 50DMA: Negative
• 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 66 is above the 20-day moving average (MA) of 65.59, below the 50-day MA of 70.88, and below the 200-day MA of 80.73, indicating a neutral trend. The MACD of -1.61 indicates Negative momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 62.89 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
KFY	76 Outperform	$3.80B	15.93	13.49%	2.32%	-1.23%	44.06%
BBSI	73 Outperform	$1.20B	22.97	25.36%	0.70%	9.48%	11.62%
TNET	68 Neutral	$3.21B	22.53	139.13%	1.59%	1.39%	-50.47%
Sector *	63 Neutral	$10.80B	16.80	6.58%	2.06%	2.47%	-15.79%
RHI	61 Neutral	$3.69B	20.71	12.75%	6.18%	-6.95%	-41.84%
MAN	58 Neutral	$1.91B	18.36	-0.78%	5.49%	-3.79%	-138.56%
NSP	54 Neutral	$1.97B	49.91	31.50%	4.59%	2.40%	-75.66%

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.