Morningstar

Trinet Group Inc TNET

Morningstar Rating
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Stock XNYS Rating as of
$96.21 +0.60 (0.63%)
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As of Delayed Price Closed

Company Report

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TriNet Enjoys High Customer Switching Costs That Underpin Our Narrow Moat Rating

Emma Williams

We view TriNet as well placed to take share of the expansive, fragmented small and midsize business payroll and human capital management market, through industry consolidation and rising demand for comprehensive, outsourced solutions. Regional providers or do-it-yourself solutions such as Intuit’s QuickBooks or Microsoft Excel service most of the small-business market, creating meaningful scope for greater penetration by value-added providers like TriNet.

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Price vs Fair Value

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TNET is trading within a range we consider fairly valued.
Price
$96.21
Fair Value
$554.00
Uncertainty
High
1-Star Price
$548.70
5-Star Price
$15.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Rising regulatory complexity, dispersed workforces, and fierce competition for labor are attractive tailwinds for TriNet and PEO peers.

Bears

TriNet is exposed to the small-business market, which is more susceptible to natural attrition and heightened risk of failure in an economic downturn.

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News

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Trading Information

Previous Close Price
$95.61
Day Range
$95.35–97.27
52-Week Range
$91.59–134.67
Bid/Ask
$91.46 / $98.21
Market Cap
$4.78 Bil
Volume/Avg
168,619 / 302,730

Key Statistics

Price/Earnings (Normalized)
13.27
Price/Sales
1.02
Dividend Yield (Trailing)
0.52%
Dividend Yield (Forward)
1.04%
Total Yield
24.46%

Company Profile

TriNet offers outsourced payroll and human capital management solutions for small and midsize businesses via a professional employer organization model. Under the PEO model, TriNet enters a co-employment arrangement and acts as the employer of record for administrative and regulatory purposes for clients’ employees, known as worksite employees. Clients leverage the scale and expertise of TriNet to access competitive employee benefits, share employment risk liability, access compliance support, and outsource mission-critical day-to-day HR functions such as payroll and tax administration. Following the acquisition of Zenefits and Clarus R+D in 2022, TriNet derives the minority of its revenue from self-service HCM software and R&D tax credit services.
Sector
Industrials
Industry
Staffing & Employment Services
Stock Style Box
Small Core
Total Number of Employees
5,500
Website
https://www.trinet.com

Competitors

Valuation

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Metric
TNET
PCTY
ADP
Price/Earnings (Normalized)
 13.2724.5329.82
Price/Book Value
 47.838.6724.49
Price/Sales
 1.026.565.86
Price/Cash Flow
 9.7720.2920.18
Price/Earnings
TNET
PCTY
ADP

Financial Strength

Metric
TNET
PCTY
ADP
Quick Ratio
 0.300.140.14
Current Ratio
 1.041.131.01
Interest Coverage
 6.86—13.81
Quick Ratio
TNET
PCTY
ADP

Profitability

Metric
TNET
PCTY
ADP
Return on Assets (Normalized)
 10.78%8.89%6.86%
Return on Equity (Normalized)
 152.49%38.52%92.41%
Return on Invested Capital (Normalized)
 29.61%36.21%51.10%
Return on Assets
TNET
PCTY
ADP

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