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TriNet Group

NYSE:TNET
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TNET
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Commercial Services
Company description

TriNet Group, Inc. provides human resources (HR) solutions for small and midsize businesses in the United States. The last earnings update was 54 days ago. More info.


Add to Portfolio Compare Print
  • TriNet Group has significant price volatility in the past 3 months.
TNET Share Price and Events
7 Day Returns
0.9%
NYSE:TNET
-1%
US Professional Services
-2.6%
US Market
1 Year Returns
-36.6%
NYSE:TNET
-9.1%
US Professional Services
-13.3%
US Market
TNET Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TriNet Group (TNET) 0.9% -29.5% -31.7% -36.6% 33.2% 2.1%
US Professional Services -1% -18% -20.3% -9.1% 15.3% 28.5%
US Market -2.6% -15.2% -22.2% -13.3% 5.7% 17.2%
1 Year Return vs Industry and Market
  • TNET underperformed the Professional Services industry which returned -9.1% over the past year.
  • TNET underperformed the Market in United States of America which returned -13.3% over the past year.
Price Volatility
TNET
Industry
5yr Volatility vs Market

TNET Value

 Is TriNet Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TriNet Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TriNet Group.

NYSE:TNET Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:TNET
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.79
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.793 (1 + (1- 21%) (17.46%))
0.934
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.934 * 5.44%)
6.82%

Discounted Cash Flow Calculation for NYSE:TNET using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TriNet Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:TNET DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.82%)
2020 276.33 Analyst x3 258.68
2021 250.00 Analyst x3 219.08
2022 242.00 Analyst x1 198.53
2023 238.19 Est @ -1.57% 182.92
2024 236.81 Est @ -0.58% 170.25
2025 237.09 Est @ 0.12% 159.56
2026 238.52 Est @ 0.6% 150.27
2027 240.77 Est @ 0.94% 142.00
2028 243.62 Est @ 1.18% 134.50
2029 246.91 Est @ 1.35% 127.61
Present value of next 10 years cash flows $1,743.00
NYSE:TNET DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $246.91 × (1 + 1.74%) ÷ (6.82% – 1.74%)
$4,942.09
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $4,942.09 ÷ (1 + 6.82%)10
$2,554.26
NYSE:TNET Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,743.00 + $2,554.26
$4,297.26
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,297.26 / 68.75
$62.51
NYSE:TNET Discount to Share Price
Calculation Result
Value per share (USD) From above. $62.51
Current discount Discount to share price of $37.99
= -1 x ($37.99 - $62.51) / $62.51
39.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price TriNet Group is available for.
Intrinsic value
39%
Share price is $37.99 vs Future cash flow value of $62.51
Current Discount Checks
For TriNet Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • TriNet Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • TriNet Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TriNet Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TriNet Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:TNET PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $3.03
NYSE:TNET Share Price ** NYSE (2020-04-06) in USD $37.99
United States of America Professional Services Industry PE Ratio Median Figure of 37 Publicly-Listed Professional Services Companies 12.43x
United States of America Market PE Ratio Median Figure of 2,946 Publicly-Listed Companies 12.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TriNet Group.

NYSE:TNET PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:TNET Share Price ÷ EPS (both in USD)

= 37.99 ÷ 3.03

12.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TriNet Group is overvalued based on earnings compared to the US Professional Services industry average.
  • TriNet Group is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does TriNet Group's expected growth come at a high price?
Raw Data
NYSE:TNET PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
10.6%per year
United States of America Professional Services Industry PEG Ratio Median Figure of 30 Publicly-Listed Professional Services Companies 1.1x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.89x

*Line of best fit is calculated by linear regression .

NYSE:TNET PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.54x ÷ 10.6%

1.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TriNet Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on TriNet Group's assets?
Raw Data
NYSE:TNET PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $6.88
NYSE:TNET Share Price * NYSE (2020-04-06) in USD $37.99
United States of America Professional Services Industry PB Ratio Median Figure of 58 Publicly-Listed Professional Services Companies 1.84x
United States of America Market PB Ratio Median Figure of 5,158 Publicly-Listed Companies 1.22x
NYSE:TNET PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:TNET Share Price ÷ Book Value per Share (both in USD)

= 37.99 ÷ 6.88

5.52x

* Primary Listing of TriNet Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TriNet Group is overvalued based on assets compared to the US Professional Services industry average.
X
Value checks
We assess TriNet Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. TriNet Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TNET Future Performance

 How is TriNet Group expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TriNet Group expected to grow at an attractive rate?
  • TriNet Group's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • TriNet Group's earnings growth is positive but not above the United States of America market average.
  • TriNet Group's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:TNET Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:TNET Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 10.6%
NYSE:TNET Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -61.4%
United States of America Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 22.3%
United States of America Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:TNET Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:TNET Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,066 285 292 1
2021-12-31 1,074 355 260 5
2020-12-31 982 372 223 5
2020-04-07
NYSE:TNET Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 3,856 471 212
2019-09-30 3,755 161 193
2019-06-30 3,661 277 189
2019-03-31 3,576 290 201
2018-12-31 3,503 -104 192
2018-09-30 3,434 271 229
2018-06-30 3,378 267 221
2018-03-31 3,328 231 203
2017-12-31 3,275 606 178
2017-09-30 3,238 -73 135
2017-06-30 3,189 -99 106
2017-03-31 3,135 -52 78

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TriNet Group's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
  • TriNet Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:TNET Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from TriNet Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TNET Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 3.83 3.83 3.83 1.00
2021-12-31 3.70 4.10 3.36 5.00
2020-12-31 3.13 3.36 2.66 5.00
2020-04-07
NYSE:TNET Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 3.03
2019-09-30 2.76
2019-06-30 2.69
2019-03-31 2.86
2018-12-31 2.74
2018-09-30 3.26
2018-06-30 3.16
2018-03-31 2.92
2017-12-31 2.58
2017-09-30 1.95
2017-06-30 1.53
2017-03-31 1.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • TriNet Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess TriNet Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TriNet Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TNET Past Performance

  How has TriNet Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TriNet Group's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • TriNet Group has delivered over 20% year on year earnings growth in the past 5 years.
  • TriNet Group's 1-year earnings growth is less than its 5-year average (10.4% vs 42.3%)
  • TriNet Group's earnings growth has not exceeded the US Professional Services industry average in the past year (10.4% vs 13.1%).
Earnings and Revenue History
TriNet Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TriNet Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:TNET Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 3,856.00 212.00 327.00 43.00
2019-09-30 3,755.00 193.00 341.00 47.00
2019-06-30 3,661.00 189.00 352.00 50.00
2019-03-31 3,576.00 201.00 336.00 48.00
2018-12-31 3,503.00 192.00 324.00 49.00
2018-09-30 3,434.00 229.00 307.00 47.00
2018-06-30 3,378.00 221.00 294.00 47.00
2018-03-31 3,328.00 203.00 297.00 47.00
2017-12-31 3,275.00 178.00 301.00 45.00
2017-09-30 3,237.76 134.56 283.94 44.03
2017-06-30 3,189.22 106.14 275.89 40.15
2017-03-31 3,135.06 78.42 263.64 35.61
2016-12-31 3,060.00 61.00 266.00 31.00
2016-09-30 2,974.94 52.54 266.71 26.68
2016-06-30 2,872.49 41.05 265.49 25.55
2016-03-31 2,766.65 27.46 259.66 26.72
2015-12-31 2,659.00 32.00 236.00 28.00
2015-09-30 2,537.26 24.05 223.60 28.72
2015-06-30 2,425.20 22.38 213.85 28.50
2015-03-31 2,310.20 29.91 206.38 27.43
2014-12-31 2,193.53 13.27 193.92 26.10
2014-09-30 2,071.53 8.39 194.14 24.04
2014-06-30 1,963.69 -0.78 188.45 22.32
2014-03-31 1,802.12 3.44 177.14 21.33
2013-12-31 1,644.28 3.22 167.25 19.95
2013-09-30 1,484.82 3.61 156.67 19.97

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • TriNet Group made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • TriNet Group used its assets more efficiently than the US Professional Services industry average last year based on Return on Assets.
  • TriNet Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TriNet Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TriNet Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TNET Health

 How is TriNet Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TriNet Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TriNet Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • TriNet Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of TriNet Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TriNet Group Company Filings, last reported 3 months ago.

NYSE:TNET Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 475.00 391.00 281.00
2019-09-30 477.00 397.00 283.00
2019-06-30 439.00 402.00 295.00
2019-03-31 406.00 407.00 307.00
2018-12-31 375.00 413.00 282.00
2018-09-30 350.00 418.00 275.00
2018-06-30 309.00 423.00 231.00
2018-03-31 262.00 413.00 330.00
2017-12-31 206.00 423.00 336.00
2017-09-30 131.86 431.69 263.53
2017-06-30 91.51 440.81 233.88
2017-03-31 42.55 449.93 216.05
2016-12-31 35.00 459.00 184.00
2016-09-30 28.92 468.14 160.56
2016-06-30 33.46 472.41 166.66
2016-03-31 26.74 489.47 195.94
2015-12-31 8.08 493.94 166.18
2015-09-30 -14.10 504.76 146.32
2015-06-30 -7.94 509.83 128.41
2015-03-31 -15.10 514.84 104.40
2014-12-31 -25.76 545.15 134.34
2014-09-30 -48.91 550.24 97.95
2014-06-30 -36.66 575.40 100.29
2014-03-31 -46.12 601.85 122.60
2013-12-31 -270.36 818.88 94.36
2013-09-30 -232.57 820.61 112.16
  • TriNet Group's level of debt (82.3%) compared to net worth is high (greater than 40%).
  • TriNet Group had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (120.5%, greater than 20% of total debt).
  • TriNet Group earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess TriNet Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TriNet Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TNET Dividends

 What is TriNet Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from TriNet Group dividends. Estimated to be 0% next year.
If you bought $2,000 of TriNet Group shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate TriNet Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate TriNet Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:TNET Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:TNET Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2020-04-07

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as TriNet Group has not reported any payouts.
  • Unable to verify if TriNet Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of TriNet Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as TriNet Group has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of TriNet Group's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess TriNet Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TriNet Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TriNet Group has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TNET Management

 What is the CEO of TriNet Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Burton Goldfield
COMPENSATION $6,218,976
AGE 63
TENURE AS CEO 11.9 years
CEO Bio

Mr. Burton M. Goldfield has been the Chief Executive Officer and President of Trinet Group, Inc. since May 2008. Mr. Goldfield has more than 25 years of experience in technology management and sales positions. He served as Chief Executive Officer of Ketera Technologies Inc. from April 20, 2006 to February 2008. He served as Senior Vice President of Worldwide Field Operations at Hyperion Solutions Corp., from January 5, 2004 to May 7, 2004. He was responsible for leading Hyperion's worldwide field organization, including field marketing, direct sales, channel management, strategic alliances and consulting services. Prior to Hyperion, he served as Vice President of Worldwide Sales for the Rational software brand of IBM Corporation and was responsible for all direct and indirect sales, consulting and field operations around the globe. He held numerous other executive management positions at Rational, including Vice President of Americas Field Operations and Western Field Operations and Senior Vice President of Corporate Business Architecture. Mr. Goldfield served as Vice President of Sales of Catapulse. He served as Vice President of Sales and Marketing of Computer Command and Control Company and Executive Vice President of CGS Scientific Corporation. He has been a Director of VoiceObjects Inc., since November 2006 and was an Independent Director of DHI Group, Inc. since December 8, 2014 until 2019. He has been a Director of TriNet Group, Inc. since May 2008. He served as a Director of Ketera Technologies Inc. He served as a Director of Voxeo Germany GmbH since November 2006. Mr. Goldfield holds a Master's Degree in Business Administration from Villanova University and a Bachelor's of Science in Biomedical Engineering from Syracuse University.

CEO Compensation
  • Burton's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Burton's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the TriNet Group management team in years:

2.9
Average Tenure
56
Average Age
  • The tenure for the TriNet Group management team is about average.
Management Team

Burton Goldfield

TITLE
President
COMPENSATION
$6M
AGE
63
TENURE
11.9 yrs

Rich Beckert

TITLE
CFO & Senior VP
COMPENSATION
$2M
AGE
57
TENURE
2.9 yrs

Samantha Wellington

TITLE
Senior VP
COMPENSATION
$4M
AGE
41
TENURE
1.4 yrs

Ed Griese

TITLE
Senior Vice President of Insurance Services
COMPENSATION
$1M
AGE
56
TENURE
4.2 yrs

Barrett Boston

TITLE
Senior VP & Chief Revenue Officer
COMPENSATION
$2M
AGE
46
TENURE
2.5 yrs

Olivier Kohler

TITLE
Senior VP & COO
AGE
56
TENURE
2 yrs

Michael Murphy

TITLE
Chief Accounting Officer
AGE
51
TENURE
3.8 yrs

Craig Flower

TITLE
Chief Technology Officer
AGE
60
TENURE
5.1 yrs

Alex Bauer

TITLE
Executive Director of Investor Relations

Michael Mendenhall

TITLE
Senior VP
AGE
57
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the TriNet Group board of directors in years:

8.6
Average Tenure
63
Average Age
  • The tenure for the TriNet Group board of directors is about average.
Board of Directors

David Hodgson

TITLE
Chairman of the Board & Lead Independent Director
COMPENSATION
$282K
AGE
62
TENURE
1.9 yrs

Burton Goldfield

TITLE
President
COMPENSATION
$6M
AGE
63
TENURE
11.9 yrs

Ray Raymond Bingham

TITLE
Independent Director
COMPENSATION
$403K
AGE
73
TENURE
11.8 yrs

Wayne Lowell

TITLE
Independent Director
COMPENSATION
$290K
AGE
63
TENURE
11.3 yrs

Katherine August-deWilde

TITLE
Independent Director
COMPENSATION
$286K
AGE
71
TENURE
6.5 yrs

Martin Babinec

TITLE
Independent Director
COMPENSATION
$258K
AGE
64
TENURE
32.3 yrs

Ken Goldman

TITLE
Independent Director
COMPENSATION
$286K
AGE
70
TENURE
10.7 yrs

Paul Chamberlain

TITLE
Independent Director
COMPENSATION
$281K
AGE
55
TENURE
4.3 yrs

Mike Angelakis

TITLE
Independent Director
COMPENSATION
$285K
AGE
54
TENURE
3.2 yrs

Shawn Guertin

TITLE
Director
AGE
55
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • TriNet Group individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Feb 20 Sell Wayne Lowell Individual 19. Feb 20 19. Feb 20 -7,588 $61.19 $-464,331
29. Nov 19 Sell Kenneth Goldman Individual 26. Nov 19 27. Nov 19 -5,000 $55.35 $-274,658
09. Aug 19 Sell Heber Raymond Bingham Individual 08. Aug 19 08. Aug 19 -15,000 $71.27 $-1,069,085
X
Management checks
We assess TriNet Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TriNet Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TNET News

Simply Wall St News

Does The Hype Around TriNet Group, Inc.'s (NYSE:TNET) Growth Justify Its August Share Price?

TNET is trading at price-to-earnings (PE) ratio of 24.1x, which suggests that TriNet Group is overvalued based on current earnings compared to the Professional Services industry average of 18.96x , and overvalued compared to the US market average ratio of 17.04x. … However, seeing as TriNet Group is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. … This means that, when we account for TriNet Group's growth, the stock can be viewed as a bit overvalued , based on the fundamentals.

Simply Wall St -

Don't Ignore The Fact That This Insider Just Sold Some Shares In TriNet Group, Inc. (NYSE:TNET)

Insiders in TriNet Group didn't buy any shares in the last year. … TriNet Group insiders own 8.6% of the company, currently worth about US$438m based on the recent share price. … An insider hasn't bought TriNet Group stock in the last three months, but there was some selling.

Simply Wall St -

Is TriNet Group, Inc.'s (NYSE:TNET) High P/E Ratio A Problem For Investors?

The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for TriNet Group: P/E of 27.27 = $73.46 ÷ $2.69 (Based on the year to June 2019.) Is A High Price-to-Earnings Ratio Good? … How Does TriNet Group's P/E Ratio Compare To Its Peers? … NYSE:TNET Price Estimation Relative to Market, July 30th 2019 Its relatively high P/E ratio indicates that TriNet Group shareholders think it will perform better than other companies in its industry classification.

Simply Wall St -

We Think TriNet Group (NYSE:TNET) Can Stay On Top Of Its Debt

See our latest analysis for TriNet Group What Is TriNet Group's Net Debt? … NYSE:TNET Historical Debt, July 15th 2019 A Look At TriNet Group's Liabilities According to the last reported balance sheet, TriNet Group had liabilities of US$1.27b due within 12 months, and liabilities of US$671.0m due beyond 12 months. … Either way, since TriNet Group does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

How Much Are TriNet Group, Inc. (NYSE:TNET) Insiders Taking Off The Table?

Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. … TriNet Group insiders own about US$418m worth of shares (which is 8.7% of the company). … It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the TriNet Group insiders selling.

Simply Wall St -

What Does TriNet Group, Inc.'s (NYSE:TNET) Share Price Indicate?

This is because TriNet Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. … With profit expected to grow by a double-digit 12% in the upcoming year, the short-term outlook is positive for TriNet Group. … With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price.

Simply Wall St -

Is There An Opportunity With TriNet Group, Inc.'s (NYSE:TNET) 31% Undervaluation?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $272.50 $317.00 $353.03 $384.01 $410.74 $434.12 $454.97 $473.99 $491.75 $508.67 Growth Rate Estimate Source Analyst x2 Analyst x2 Est @ 11.37% Est @ 8.77% Est @ 6.96% Est @ 5.69% Est @ 4.8% Est @ 4.18% Est @ 3.75% Est @ 3.44% Present Value ($, Millions) Discounted @ 8.46% $251.25 $269.48 $276.70 $277.51 $273.67 $266.69 $257.70 $247.54 $236.78 $225.82 Present Value of 10-year Cash Flow (PVCF)= $2.58b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$509m × (1 + 2.7%) ÷ (8.5% – 2.7%) = US$9.1b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$9.1b ÷ ( 1 + 8.5%)10 = $4.05b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $6.63b. … NYSE:TNET Intrinsic value, June 8th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Should We Be Delighted With TriNet Group, Inc.'s (NYSE:TNET) ROE Of 50%?

Our data shows TriNet Group has a return on equity of 50% for the last year. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for TriNet Group: 50% = US$201m ÷ US$406m (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity.

Simply Wall St -

Are TriNet Group, Inc.’s (NYSE:TNET) High Returns Really That Great?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Here's What TriNet Group, Inc.'s (NYSE:TNET) P/E Ratio Is Telling Us

To keep it practical, we'll show how TriNet Group, Inc.'s (NYSE:TNET) P/E ratio could help you assess the value on offer. … What is TriNet Group's P/E ratio? … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

TNET Company Info

Description

TriNet Group, Inc. provides human resources (HR) solutions 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 benefit 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 founded in 1988 and is headquartered in Dublin, California.

Details
Name: TriNet Group, Inc.
TNET
Exchange: NYSE
Founded: 1988
$2,611,829,101
68,750,437
Website: http://www.trinet.com
Address: TriNet Group, Inc.
One Park Place,
Suite 600,
Dublin,
California, 94568,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE TNET Common Stock New York Stock Exchange US USD 27. Mar 2014
Number of employees
Current staff
Staff numbers
2,900
TriNet Group employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 04:59
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/02/13
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.