TriNet Group, Inc. (TNET) 10-Year Financial Performance & Capital Metrics

TNET • • Industrial / General

IndustrialsStaffing & HRHuman Capital Management & PEO ServicesComprehensive HCM & PEO Providers

AboutTriNet 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.Show more

Revenue $5.05B +2.7%
EBITDA $374M -36.6%
Net Income $173M -53.9%
EPS (Diluted) 3.43 -47.9%
Gross Margin 18.84% -15.9%
EBITDA Margin 7.4% -38.3%
Operating Margin 5.7% -40.2%
Net Margin 3.42% -55.1%
ROE 235.37% +167.7%
ROIC 26.04% -29.6%
Debt/Equity 14.81 +1.6%
Interest Coverage 4.65 -60.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 122.1%
✓High quality earnings: Operating CF exceeds net income
✓Share count reduced 12.3% through buybacks
✓Efficient asset utilization: 1.2x turnover

✗Weaknesses

✗High debt to equity ratio of 14.8x
✗Trading more than 30% below 52-week high
✗Expensive at 45.8x book value

Price & Volume

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Growth Metrics

Revenue CAGR

10Y8.7%

5Y5.56%

3Y3.63%

TTM1.62%

Profit (Net Income) CAGR

10Y27.29%

5Y-3.98%

3Y-20.01%

TTM-49.43%

EPS CAGR

10Y31.61%

5Y2.78%

3Y-12.21%

TTM-47.78%

ROCE

10Y Avg26.93%

5Y Avg31.55%

3Y Avg30.75%

Latest24.32%

Peer Comparison

Comprehensive HCM & PEO Providers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ADPAutomatic Data Processing, Inc.	105.24B	260.20	26.07	7.07%	19.79%	64.9%	4.53%	1.46
PAYXPaychex, Inc.	39.67B	110.51	24.13	5.56%	26.45%	41.13%	4.43%	1.22
BBSIBarrett Business Services, Inc.	1.01B	39.42	19.91	7.03%	4.48%	22.84%		0.10
NSPInsperity, Inc.	1.75B	46.32	19.38	1.46%	0.25%	19.54%	27.6%	4.48
TNETTriNet Group, Inc.	3.04B	63.21	18.43	2.66%	2.61%	120.91%	6.62%	14.81
GLXGGalaxy Payroll Group Limited	3.28M	1.82	0.55	-4.26%	9.7%	3.66%	100%	0.36

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	2.66B	3.06B	3.27B	3.5B	3.86B	4.03B	4.54B	4.88B	4.92B	5.05B
Revenue Growth %	0.21%	0.15%	0.07%	0.07%	0.1%	0.05%	0.13%	0.08%	0.01%	0.03%
Cost of Goods Sold+	2.26B	2.6B	2.68B	2.84B	3.17B	3.24B	3.6B	3.77B	3.82B	4.1B
COGS % of Revenue	0.85%	0.85%	0.82%	0.81%	0.82%	0.8%	0.79%	0.77%	0.78%	0.81%
Gross Profit+	396.22M	456.12M	596M	664M	684M	793M	937M	1.12B	1.1B	952M
Gross Margin %	0.15%	0.15%	0.18%	0.19%	0.18%	0.2%	0.21%	0.23%	0.22%	0.19%
Gross Profit Growth %	0.06%	0.15%	0.31%	0.11%	0.03%	0.16%	0.18%	0.19%	-0.02%	-0.14%
Operating Expenses+	317.9M	332.16M	379M	413M	416M	425M	482M	620M	633M	664M
OpEx % of Revenue	0.12%	0.11%	0.12%	0.12%	0.11%	0.11%	0.11%	0.13%	0.13%	0.13%
Selling, General & Admin	236.38M	265.37M	301M	324M	327M	338M	378M	483M	496M	521M
SG&A % of Revenue	0.09%	0.09%	0.09%	0.09%	0.08%	0.08%	0.08%	0.1%	0.1%	0.1%
Research & Development	27.56M	31.44M	45M	49M	43M	40M	50M	73M	65M	68M
R&D % of Revenue	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Other Operating Expenses	1.14M	751K	3M	40M	46M	47M	54M	64M	72M	75M
Operating Income+	78.32M	123.96M	217M	251M	268M	368M	455M	499M	469M	288M
Operating Margin %	0.03%	0.04%	0.07%	0.07%	0.07%	0.09%	0.1%	0.1%	0.1%	0.06%
Operating Income Growth %	-0.1%	0.58%	0.75%	0.16%	0.07%	0.37%	0.24%	0.1%	-0.06%	-0.39%
EBITDA+	131.13M	159.31M	250M	291M	314M	415M	514M	588M	590M	374M
EBITDA Margin %	0.05%	0.05%	0.08%	0.08%	0.08%	0.1%	0.11%	0.12%	0.12%	0.07%
EBITDA Growth %	-0.23%	0.21%	0.57%	0.16%	0.08%	0.32%	0.24%	0.14%	0%	-0.37%
D&A (Non-Cash Add-back)	52.82M	35.35M	33M	40M	46M	47M	59M	89M	121M	86M
EBIT	79M	124.71M	217M	251M	312M	399M	461M	521M	541M	288M
Net Interest Income+	-19M	-20M	-17M	-10M	2M	-11M	-14M	-17M	32M	2M
Interest Income	0	0	3M	12M	23M	10M	6M	22M	72M	64M
Interest Expense	19M	20M	20M	22M	21M	21M	20M	39M	40M	62M
Other Income/Expense	-18.31M	-19.51M	-17M	-10M	2M	-11M	-14M	-17M	32M	-62M
Pretax Income+	60.01M	104.45M	200M	241M	270M	357M	441M	482M	501M	226M
Pretax Margin %	0.02%	0.03%	0.06%	0.07%	0.07%	0.09%	0.1%	0.1%	0.1%	0.04%
Income Tax+	28.32M	43.05M	22M	49M	58M	85M	103M	127M	126M	53M
Effective Tax Rate %	0.53%	0.59%	0.89%	0.8%	0.79%	0.76%	0.77%	0.74%	0.75%	0.77%
Net Income+	31.7M	61.41M	178M	192M	212M	272M	338M	355M	375M	173M
Net Margin %	0.01%	0.02%	0.05%	0.05%	0.05%	0.07%	0.07%	0.07%	0.08%	0.03%
Net Income Growth %	1.05%	0.94%	1.9%	0.08%	0.1%	0.28%	0.24%	0.05%	0.06%	-0.54%
Net Income (Continuing)	31.7M	61.41M	178M	192M	212M	272M	338M	355M	375M	173M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	0.44	0.85	2.49	2.66	2.99	4.00	5.07	5.61	6.58	3.43
EPS Growth %	1%	0.93%	1.93%	0.07%	0.12%	0.34%	0.27%	0.11%	0.17%	-0.48%
EPS (Basic)	0.45	0.88	2.57	2.73	3.03	4.06	5.12	5.66	6.58	3.46
Diluted Shares Outstanding	72.62M	71.97M	71.39M	72.3M	71M	68M	67M	64M	57M	50M
Basic Shares Outstanding	70.23M	70.16M	69.18M	70.39M	70M	67M	66M	63M	57M	50M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	0.21%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.57B	1.54B	1.99B	1.65B	1.87B	2.16B	2.44B	2.33B	2.58B	3.18B
Cash & Short-Term Investments	166.18M	184M	336M	282M	1.46B	358M	747M	430M	352M	360M
Cash Only	166.18M	184M	336M	228M	1.39B	301M	612M	354M	287M	360M
Short-Term Investments	0	0	0	54M	68M	57M	135M	76M	65M	0
Accounts Receivable	0	0	318M	315M	294M	264M	339M	394M	465M	381M
Days Sales Outstanding	-	-	35.44	32.82	27.83	23.89	27.25	29.44	34.48	27.52
Inventory	0	0	-290M	990M	0	1.45B	0	0	0	0
Days Inventory Outstanding	-	-	-	127.28	-	163.41	-	-	-	-
Other Current Assets	1.39B	1.15B	1.3B	1B	64M	24M	1.29B	1.43B	1.69B	2.38B
Total Non-Current Assets+	527.71M	559.79M	602M	789M	877M	883M	870M	1.12B	1.11B	939M
Property, Plant & Equipment	37.84M	58.62M	70M	79M	140M	130M	66M	55M	41M	34M
Fixed Asset Turnover	70.27x	52.20x	46.79x	44.34x	27.54x	31.03x	68.79x	88.82x	120.05x	148.62x
Goodwill	289.21M	289.21M	289M	289M	289M	294M	294M	462M	462M	461M
Intangible Assets	46.77M	31.07M	26M	21M	15M	18M	61M	163M	172M	156M
Long-Term Investments	-2.56M	-60.49M	39M	135M	337M	138M	168M	151M	143M	145M
Other Non-Current Assets	101.81M	149M	176M	265M	96M	303M	281M	286M	297M	143M
Total Assets+	2.1B	2.1B	2.59B	2.44B	2.75B	3.04B	3.31B	3.44B	3.69B	4.12B
Asset Turnover	1.27x	1.46x	1.26x	1.44x	1.40x	1.33x	1.37x	1.42x	1.33x	1.23x
Asset Growth %	-0.11%	-0%	0.24%	-0.06%	0.13%	0.11%	0.09%	0.04%	0.07%	0.12%
Total Current Liabilities+	1.46B	1.38B	1.76B	1.43B	1.64B	1.87B	1.74B	1.99B	2.46B	2.98B
Accounts Payable	12.9M	22.54M	45M	45M	31M	50M	86M	98M	87M	89M
Days Payables Outstanding	2.08	3.16	6.13	5.79	3.57	5.63	8.71	9.5	8.31	7.92
Short-Term Debt	32.97M	36.56M	40M	22M	39M	22M	0	0	109M	75M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	0	1000K	1000K	1000K	1000K	0
Other Current Liabilities	11.4M	12.55M	66M	56M	954M	0	229M	228M	0	889M
Current Ratio	1.08x	1.11x	1.13x	1.16x	1.14x	1.16x	1.40x	1.17x	1.05x	1.07x
Quick Ratio	1.08x	1.11x	1.30x	0.46x	1.14x	0.38x	1.40x	1.17x	1.05x	1.07x
Cash Conversion Cycle	-	-	-	154.32	-	181.67	-	-	-	-
Total Non-Current Liabilities+	632.06M	681.97M	630M	635M	630M	566M	689M	680M	1.15B	1.07B
Long-Term Debt	460.96M	422.5M	383M	391M	369M	348M	495M	496M	984M	908M
Capital Lease Obligations	0	0	0	0	48M	49M	41M	41M	30M	26M
Deferred Tax Liabilities	54.64M	92.37M	68M	68M	61M	22M	11M	8M	13M	11M
Other Non-Current Liabilities	167.67M	167.1M	179M	176M	152M	147M	142M	135M	125M	124M
Total Liabilities	2.09B	2.06B	2.39B	2.06B	2.27B	2.44B	2.43B	2.67B	3.62B	4.05B
Total Debt+	499.72M	459.05M	423M	413M	456M	430M	547M	552M	1.14B	1.02B
Net Debt	333.54M	275.05M	87M	185M	-937M	129M	-65M	198M	850M	662M
Debt / Equity	61.84x	13.27x	2.05x	1.10x	0.96x	0.71x	0.62x	0.71x	14.58x	14.81x
Debt / EBITDA	3.81x	2.88x	1.69x	1.42x	1.45x	1.04x	1.06x	0.94x	1.93x	2.73x
Net Debt / EBITDA	2.54x	1.73x	0.35x	0.64x	-2.98x	0.31x	-0.13x	0.34x	1.44x	1.77x
Interest Coverage	4.12x	6.20x	10.85x	11.41x	12.76x	17.52x	22.75x	12.79x	11.73x	4.65x
Total Equity+	8.08M	34.59M	206M	375M	475M	607M	881M	775M	78M	69M
Equity Growth %	1.31%	3.28%	4.96%	0.82%	0.27%	0.28%	0.45%	-0.12%	-0.9%	-0.12%
Book Value per Share	0.11	0.48	2.89	5.19	6.69	8.93	13.15	12.11	1.37	1.38
Total Shareholders' Equity	8.08M	34.59M	206M	375M	475M	607M	881M	775M	78M	69M
Common Stock	494.4M	535.13M	583M	641M	694M	747M	808M	899M	976M	1.06B
Retained Earnings	-485.6M	-499.94M	-377M	-266M	-219M	-144M	74M	-119M	-896M	-984M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-721K	-604K	-104M	-130M	0	4M	-1M	-5M	-2M	-3M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	130.6M	144.53M	253M	-104M	471M	546M	218M	562M	545M	279M
Operating CF Margin %	0.05%	0.05%	0.08%	-0.03%	0.12%	0.14%	0.05%	0.12%	0.11%	0.06%
Operating CF Growth %	-0.15%	0.11%	0.75%	-1.41%	5.53%	0.16%	-0.6%	1.58%	-0.03%	-0.49%
Net Income	31.7M	61.41M	178M	192M	212M	272M	338M	355M	375M	173M
Depreciation & Amortization	52.82M	39.17M	35M	46M	57M	81M	94M	126M	121M	86M
Stock-Based Compensation	17.92M	26.5M	32M	44M	41M	43M	50M	62M	59M	65M
Deferred Taxes	14.95M	41.77M	-25M	1M	-7M	-42M	-9M	-22M	5M	-2M
Other Non-Cash Items	-21.31M	-4.64M	85M	142M	15M	4M	5M	29M	7M	72M
Working Capital Changes	34.52M	-19.68M	33M	-387M	153M	188M	-260M	12M	-22M	-115M
Change in Receivables	3.15M	-2.68M	-7M	10M	5M	32M	3M	-51M	-74M	-2M
Change in Inventory	0	0	0	-370M	175M	0	-254M	51M	40M	0
Change in Payables	287K	9.16M	22M	-8M	-15M	19M	33M	-13M	-8M	-7M
Cash from Investing+	-37.69M	-27.12M	-24M	-200M	-188M	-151M	-135M	-226M	-70M	153M
Capital Expenditures	-18.56M	-39.65M	-38M	-43M	-45M	-36M	-40M	-56M	-75M	-78M
CapEx % of Revenue	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.02%	0.02%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-14M	13M	14M	-46M	-47M	0	-40M	0	-5M	0
Cash from Financing+	-60.75M	-99.37M	-77M	-85M	-176M	-208M	12M	-536M	-546M	-207M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	-37M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	20.13M	13.63M	-11M	14M	-25M	10M	-35M	-24M	-39M	111M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	112.04M	104.88M	215M	-147M	426M	510M	178M	506M	470M	201M
FCF Margin %	0.04%	0.03%	0.07%	-0.04%	0.11%	0.13%	0.04%	0.1%	0.1%	0.04%
FCF Growth %	-0.16%	-0.06%	1.05%	-1.68%	3.9%	0.2%	-0.65%	1.84%	-0.07%	-0.57%
FCF per Share	1.54	1.46	3.01	-2.03	6.00	7.50	2.66	7.91	8.25	4.02
FCF Conversion (FCF/Net Income)	4.12x	2.35x	1.42x	-0.54x	2.22x	2.01x	0.64x	1.58x	1.45x	1.61x
Interest Paid	15M	15M	16M	17M	19M	16M	12M	18M	25M	59M
Taxes Paid	2M	39M	2M	49M	62M	123M	129M	128M	114M	76M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	392.22%	287.81%	147.97%	66.09%	49.88%	50.28%	45.43%	42.87%	87.92%	235.37%
Return on Invested Capital (ROIC)	16.17%	28.55%	54.01%	44.14%	410.2%	201.46%	43.98%	41.84%	37.01%	26.04%
Gross Margin	14.9%	14.9%	18.2%	18.96%	17.74%	19.66%	20.64%	22.91%	22.39%	18.84%
Net Margin	1.19%	2.01%	5.44%	5.48%	5.5%	6.74%	7.44%	7.27%	7.62%	3.42%
Debt / Equity	61.84x	13.27x	2.05x	1.10x	0.96x	0.71x	0.62x	0.71x	14.58x	14.81x
Interest Coverage	4.12x	6.20x	10.85x	11.41x	12.76x	17.52x	22.75x	12.79x	11.73x	4.65x
FCF Conversion	4.12x	2.35x	1.42x	-0.54x	2.22x	2.01x	0.64x	1.58x	1.45x	1.61x
Revenue Growth	21.23%	15.08%	7.02%	6.96%	10.08%	4.62%	12.54%	7.6%	0.76%	2.66%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
Insurance Services	3.02B	3.33B	3.49B	3.9B	4.13B	4.17B	4.22B
Insurance Services Growth	-	10.28%	4.93%	11.78%	5.90%	0.85%	1.39%
Professional Services	-	530M	544M	639M	754M	756M	765M
Professional Services Growth	-	-	2.64%	17.46%	18.00%	0.27%	1.19%

Frequently Asked Questions

Valuation & Price

TriNet Group, Inc. (TNET) has a price-to-earnings (P/E) ratio of 18.4x. This is roughly in line with market averages.

Growth & Financials

TriNet Group, Inc. (TNET) reported $5.09B in revenue for fiscal year 2024. This represents a 399% increase from $1.02B in 2012.

TriNet Group, Inc. (TNET) grew revenue by 2.7% over the past year. Growth has been modest.

Yes, TriNet Group, Inc. (TNET) is profitable, generating $133.0M in net income for fiscal year 2024 (3.4% net margin).

Dividend & Returns

Yes, TriNet Group, Inc. (TNET) pays a dividend with a yield of 1.17%. This makes it attractive for income-focused investors.

TriNet Group, Inc. (TNET) has a return on equity (ROE) of 235.4%. This is excellent, indicating efficient use of shareholder capital.

TriNet Group, Inc. (TNET) generated $765.0M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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