TriNet Group, Inc. (TNET) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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ICON plc

Why is TriNet Group, Inc. ?

High Management Efficiency with a high ROE of 127.79%

Company has a low Debt to Equity ratio (avg) at times

Flat results in Jun 25

NET PROFIT(9M) At USD 100.45 MM has Grown at -53.92%
RAW MATERIAL COST(Y) Grown by 13.19% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 10.06 times

With ROE of 265.08%, it has a very expensive valuation with a 63.96 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -38.53%, its profits have fallen by -50.2%

Below par performance in long term as well as near term

Along with generating -38.53% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TriNet Group, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is TriNet Group, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

TriNet Group, Inc.

-32.93%

-1.21

36.72%

S&P 500

11.09%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.76%

EBIT Growth (5y)

-12.70%

EBIT to Interest (avg)

13.62

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-6.00

Sales to Capital Employed (avg)

4.13

Tax Ratio

23.04%

Dividend Payout Ratio

28.90%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

127.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

63.96

EV to EBIT

16.09

EV to EBITDA

10.23

EV to Capital Employed

-11.59

EV to Sales

0.73

PEG Ratio

Dividend Yield

2.56%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

265.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 694 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 36.42%

DIVIDEND PER SHARE(HY)

Highest at USD 10.06

-6What is not working for the Company

NET PROFIT(9M)

At USD 100.45 MM has Grown at -53.92%

RAW MATERIAL COST(Y)

Grown by 13.19% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.06 times

Here's what is working for TriNet Group, Inc.

Operating Cash Flow

Highest at USD 694 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 10.06

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 36.42%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for TriNet Group, Inc.

Net Profit

At USD 100.45 MM has Grown at -53.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debtors Turnover Ratio

Lowest at 10.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 13.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales