Shares of Mid-cap consumer discretionary company TriNet moved -0.0% this morning, and are now trading at $105.42 per share. The average analyst target price for the stock is $109.5.
TriNet Group, Inc. provides human resources (HR) consulting services, employee benefit options, payroll services, and employment risk mitigation services for small and medium size businesses in the United States.
Based on its trailing earning per share of 5.55, TriNet has a trailing 12 month Price to Earnings (P/E) ratio of 19.0 TNET has a forward P/E ratio of 15.8.
The company has a price to earnings growth (PEG) ratio of 2.1. A number between 0 and 1 could mean that the market is undervaluing TriNet's estimated growth potential
Growing Revenues With Increasing Reinvestment in the Business
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $3,856 | $4,034 | $4,540 | $4,885 |
| Gross Margins | 17.7% | 19.7% | 20.6% | 22.9% |
| Operating Margins | 7.0% | 9.1% | 10.0% | 10.2% |
| Net Margins | 5.5% | 6.74% | 7.44% | 7.27% |
| Net Income (MM) | $212 | $272 | $338 | $355 |
| Net Interest Expense (MM) | $2 | -$11 | -$14 | -$17 |
| Depreciation & Amort. (MM) | -$57 | -$81 | -$94 | -$126 |
| Earnings Per Share | $2.99 | $3.99 | $5.07 | $5.55 |
| EPS Growth | n/a | 33.44% | 27.07% | 9.47% |
| Diluted Shares (MM) | 71 | 68 | 67 | 59 |
| Free Cash Flow (MM) | $426 | $510 | $178 | $506 |
| Capital Expenditures (MM) | -$45 | -$36 | -$40 | -$56 |
| Net Current Assets (MM) | -$402 | -$276 | $11 | -$342 |
| Current Ratio | 1.14 | 1.16 | 1.4 | 1.17 |
| Long Term Debt (MM) | $369 | $348 | $495 | $496 |
| Net Debt / EBITDA | 0.59 | 0.18 | -0.19 | 0.25 |
TriNet benefits from growing revenues and increasing reinvestment in the business, low leverage, and average operating margins with a positive growth rate. The company's financial statements show a strong EPS growth trend and consistent free cash flow. However, the firm has slimmer gross margins than its peers. Finally, we note that TriNet has just enough current assets to cover current liabilities.
