TriNet Group, Inc. (TNET) stock analysis
Close on Nov 11, 2026Market cap $3.00BP/E 17.8Yield 0.42%
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed10 of 30 checks passed
TriNet passes 10 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 1/6
- Past performance
- 2/6
- Financial health
- 2/6
- Dividend
- 3/6
What stands out
Trading below fair value
The share price of $65.58 is below our fair value estimate of $77.48.
Return on equity over 15%
Return on equity was 142% over the last twelve months and averaged 133% over five years.
Earnings growth accelerating
Net income grew 29.3% over the last twelve months, against a 5-year average of -10.6% a year.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 42.2% of total debt.
What to watch
Margin of safety under 20%
The price is 15.4% below fair value, less than the 20% cushion we look for.
High debt
Debt is 674% of shareholders' equity, above the 40% we consider low.
Earnings shrank over 5 years
Net income shrank 10.6% a year on average over the last five fiscal years.
Revenue growing under 10% a year
Revenue grew 0.7% a year over the last three fiscal years, short of the 10% we look for.
Valuation2/6
P/E above its 5-year median
TriNet's P/E of 17.8 is above its own 5-year median of 17.8.
P/E below the industry
TriNet's P/E of 17.8 is below the Miscellaneous Business Services median of 25.8.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
TriNet's price-to-book of 22.59 is above the Miscellaneous Business Services median of 2.48.
Trading below fair value
The share price of $65.58 is below our fair value estimate of $77.48.
Margin of safety under 20%
The price is 15.4% below fair value, less than the 20% cushion we look for.
Growth1/6
Revenue growing under 10% a year
Revenue grew 0.7% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -17.1% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 29.3% over the last twelve months, against a 5-year average of -10.6% a year.
Growing slower than the industry
Revenue grew -4.2% over the last twelve months; the Miscellaneous Business Services median is 9.9%.
Guidance lowered
TriNet lowered its Full Year 2026 Professional Service Revenues outlook on Jul 30, 2026.
Gross margin trend
This company does not report gross profit.
Past performance2/6
Return on equity over 15%
Return on equity was 142% over the last twelve months and averaged 133% over five years.
Return on invested capital
Needs operating income and invested capital.
Return on equity above the industry
TriNet's return on equity of 142% is above the Miscellaneous Business Services median of 6.8%.
Earnings shrank over 5 years
Net income shrank 10.6% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 3.6% over the last twelve months, against a 5-year average of 5.7%.
Net margin below the industry
TriNet's net margin of 3.6% is below the Miscellaneous Business Services median of 3.8%.
Financial health2/6
High debt
Debt is 674% of shareholders' equity, above the 40% we consider low.
Debt rising against equity
Debt to equity rose from 61.0% five years ago to 674%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 42.2% of total debt.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 1.14 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.65; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
TriNet paid dividends worth 1.7% of the share price over the last twelve months.
Yield below Treasuries
The 1.7% yield is below the 4.4% on a 1-year Treasury.
Yield below the top quarter
The top quarter of US dividend payers yield 3.8% or more; TriNet yields 1.7%.
Dividend stability
Fewer than five years of dividend history.
Covered by earnings
Dividends take 30.8% of net income.
Covered by free cash flow
Dividends take 18.5% of free cash flow.
Fair value
How we estimate itOur estimate per share
$77.48
The share price is 15% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 21.8× | 17.8× | 25.8× | $80.10 | 73% |
| Earnings power | 9.3% cost of equity | – | – | $70.51 | 27% |
| Fair value | $77.48 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 17.8
- Miscellaneous Business Services median 25.8
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $24.04M
- Value traded per 1% price move
- $11.89M
Downside
High risk
- Typical loss in a bad month
- 38.9%
- Volatility (annualized)
- 50%
- Sharpe ratio, 1 year
- 0.32
- Beta to the S&P 500 (5Y)
- 0.88
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -0.9% | +0.7% | +4.4% | +6.5% | |
| Net income | -10.4% | -24.1% | -10.6% | +17.1% | |
| EPS, diluted | -6.7% | -17.1% | -4.3% | +21.9% | |
| Free cash flow | +16.4% | -19.0% | -14.4% | +5.9% | |
| Dividend per share | +10.0% | – | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 283.7% | 50.3% | 252.0% | |
| Return on assets | 2.9% | 9.4% | 3.9% | |
| Current ratio | 1.11 | 1.16 | 1.09 | |
| Debt to equity | 13.10 | 0.61 | 16.57 | |
| Net debt to EBITDA | -4.75× | – | – | |
| Capex to revenue | 1.3% | 0.9% | 1.4% | |
| Diluted shares | 72M | 68M | 49M |
Where the cash went
Fiscal 2021 to 2025, five years combined
TriNet generated $1.84B from operations and spent $2.51B on capital expenditure, dividends and share buybacks. 13% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 3.1% | 1.27× | 64.36× | 252.0% |
| FY2024 | 3.4% | 1.29× | 53.14× | 235.4% |
| FY2023 | 7.5% | 1.40× | 8.37× | 87.9% |
| FY2022 | 7.2% | 1.45× | 4.08× | 42.9% |
| FY2021 | 7.4% | 1.43× | 4.27× | 45.4% |
| FY2020 | 6.7% | 1.39× | 5.35× | 50.3% |
| FY2019 | 5.5% | 1.49× | 6.10× | 49.9% |
| FY2018 | 5.5% | 1.39× | 8.65× | 66.1% |
| FY2017 | 5.4% | 1.40× | 19.45× | 147.7% |
| FY2016 | 2.0% | 1.46× | 97.38× | 283.7% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$155.00M
- Cash generatingOperating cash flow above zero$303.00M
- Return on assets improvedROA up on the prior year4.7% → 3.8%
- Earnings backed by cashOperating cash flow above net income$303.00M vs $155.00M
- Less leverageLong-term debt to assets fell22.0% → 23.6%
- Better liquidityCurrent ratio rose1.07 → 1.09
- No dilutionShare count did not rise50M → 49M
- Gross margin improvedGross margin up on the prior year– → –
- More efficientAsset turnover rose1.37 → 1.22
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