What are the investment strengths of Trinet Group Inc (TNET)?

Asset-light model: 1.4x asset turnover TTM with only 48M PPE generates 238M FCF - minimal reinvestment needed P/S of 0.57x vs industry 1.48x median offers value if revenue stabilizes; 8.3% FCF yield funds buybacks

What are the investment risks for Trinet Group Inc (TNET)?

Negative tangible equity (-502M) with 8.6x debt/equity - goodwill impairment would eliminate book value entirely Revenue stagnant (-0.2% 3Y CAGR) while gross profit declining 5.7% YoY signals pricing/mix pressure

Trinet Group Inc

TNET

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Trinet Group Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-18

Snapshot

Tangible book value is -502M with debt/equity of 8.6x - equity is essentially goodwill (461M of 110M equity base)[Tangible Book Value]
ROE of 111% TTM driven by razor-thin equity base (110M) vs 133M net income - leverage amplifies returns[Return on Equity TTM]
FCF of 238M TTM on 2.9B market cap = 8.3% FCF yield despite -17% EPS 3Y CAGR decline[Free Cash Flow TTM]

Watch Triggers

Gross Margin TTM: Falls below 15% — Already at 17.7% vs 36.6% industry median - further compression threatens profitability
Goodwill: Impairment charge announced — 461M goodwill is 4.2x total equity - any writedown could trigger covenant issues
Total Revenue TTM: Declines >5% YoY — High operating leverage means revenue drops flow through to earnings at 3-4x rate

Bull Case

Asset-light model: 1.4x asset turnover TTM with only 48M PPE generates 238M FCF - minimal reinvestment needed

Asset Turnover TTMFree Cash Flow TTMPPE

P/S of 0.57x vs industry 1.48x median offers value if revenue stabilizes; 8.3% FCF yield funds buybacks

P/S RatioFree Cash Flow TTM

Bear Case

Negative tangible equity (-502M) with 8.6x debt/equity - goodwill impairment would eliminate book value entirely

Tangible Book ValueDebt to EquityGoodwill

Revenue stagnant (-0.2% 3Y CAGR) while gross profit declining 5.7% YoY signals pricing/mix pressure

Total Revenue 3Y GrowthGross Profit 1Y Growth

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

40%

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Forward Thesis

Capital-light PEO model generates cash but faces structural revenue headwinds

1-3ymed

FCF margin 4.7% with minimal capex (69M TTM)
Revenue flat 3Y CAGR (-0.2%) vs industry +4.8%
Gross margin 17.7% vs industry 36.6% median

FCF 238M on 5B revenue TTMGross profit down 5.7% YoYOperating margin 4.7% vs 5.1% industry

Valuation Context

Caveats

Public Strategies Rankings

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TNET Fundamentals

Administrative and Support and Waste Management and Remediation Services → Administrative and Support Services

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$3.01B		—
Enterprise Value	$3.63B		—
P/E Ratio	23		—
Total Revenue - TTM	$5.04B	+1.3%	—
Earnings Per Share (diluted) - TTM	$2.75	-47.4%	—
Operating Margin - TTM	4.68%	-2.3%	—
Net Margin - TTM	2.64%	-2.7%	—
Free Cash Flow - TTM	$238.0M	+3.0%	—
Return on Common Equity - TTM	1.1	-267.1%	—
Beta 5Y (Monthly)	unknown		—

TNET Dividend History

8 dividends

2026

$0.2750

01/02/26$0.2750

2025

$1.0750

10/01/25$0.2750

07/01/25$0.2750

04/01/25$0.2750

01/02/25$0.2500

2024

$0.7500

10/01/24$0.2500

07/01/24$0.2500

03/28/24$0.2500

TNET Stock Splits

No stock splits

TNET SEC Filings

Filing Date	Report Date	Report Type	Filing Link
10/29/25	09/30/25	10-Q	0000937098-25-000185
07/25/25	06/30/25	10-Q	0000937098-25-000131
04/25/25	03/31/25	10-Q	0000937098-25-000073
02/13/25	12/31/24	10-K	0000937098-25-000016
10/25/24	09/30/24	10-Q	0000937098-24-000182
07/26/24	06/30/24	10-Q	0000937098-24-000146
04/26/24	03/31/24	10-Q	0000937098-24-000088
02/15/24	12/31/23	10-K	0000937098-24-000025
10/25/23	09/30/23	10-Q	0000937098-23-000199
07/26/23	06/30/23	10-Q	0000937098-23-000146
04/26/23	03/31/23	10-Q	0000937098-23-000108
02/15/23	12/31/22	10-K	0000937098-23-000028
10/25/22	09/30/22	10-Q	0000937098-22-000223
07/26/22	06/30/22	10-Q	0000937098-22-000190
04/26/22	03/31/22	10-Q	0000937098-22-000130
02/14/22	12/31/21	10-K	0000937098-22-000048
10/25/21	09/30/21	10-Q	0000937098-21-000244
07/26/21	06/30/21	10-Q	0000937098-21-000195
04/26/21	03/31/21	10-Q	0000937098-21-000124
02/16/21	12/31/20	10-K	0000937098-21-000027
10/26/20	09/30/20	10-Q	0000937098-20-000254
07/27/20	06/30/20	10-Q	0000937098-20-000203
04/28/20	03/31/20	10-Q	0000937098-20-000145
02/13/20	12/31/19	10-K	0000937098-20-000067
10/25/19	09/30/19	10-Q	0000937098-19-000216
07/25/19	06/30/19	10-Q	0000937098-19-000182
04/29/19	03/31/19	10-Q	0000937098-19-000125
02/14/19	12/31/18	10-K	0000937098-19-000030
10/29/18	09/30/18	10-Q	0000937098-18-000170
07/30/18	06/30/18	10-Q	0000937098-18-000140
04/30/18	03/31/18	10-Q	0000937098-18-000104
02/27/18	12/31/17	10-K	0000937098-18-000055
11/02/17	09/30/17	10-Q	0000937098-17-000211
08/01/17	06/30/17	10-Q	0000937098-17-000165
05/02/17	03/31/17	10-Q	0000937098-17-000111
02/28/17	12/31/16	10-K	0000937098-17-000062
11/03/16	09/30/16	10-Q	0000937098-16-000213
08/03/16	06/30/16	10-Q	0000937098-16-000178
05/04/16	03/31/16	10-Q	0000937098-16-000141
04/01/16	12/31/15	10-K	0000937098-16-000114
11/05/15	09/30/15	10-Q	0000937098-15-000018
08/06/15	06/30/15	10-Q	0001564590-15-006460
05/08/15	03/31/15	10-Q	0001564590-15-003639
03/30/15	12/31/14	10-K	0001564590-15-002136
11/06/14	09/30/14	10-Q	0001564590-14-005195
08/06/14	06/30/14	10-Q	0001564590-14-003215
05/08/14	03/31/14	10-Q	0001564590-14-001960
03/27/14	12/31/13	424B4	0001193125-14-118600
11/06/14	09/30/13	10-Q	0001564590-14-005195
08/06/14	06/30/13	10-Q	0001564590-14-003215
05/08/14	03/31/13	10-Q	0001564590-14-001960