TriNet Group Inc ($TNET) Possible Buy to $70 Confident Investor Rating: Good

Company name TriNet Group Inc
Stock ticker TNET
Live stock price [stckqut]TNET[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Fair
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $88.19
Target stock price (averages with growth) $123.66
Target stock price (averages with no growth) $84.
Target stock price (manual assumptions) $80.4

The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/tnet

TriNet Group, Inc. (TriNet), incorporated on January 26, 2000, is a provider of human resources (HR) solutions for small to medium-sized businesses (SMBs). The Company’s HR solutions include services, such as multi-state payroll processing and tax administration, employee benefits programs, including health insurance and retirement plans, workers’ compensation insurance and claims management, employment and benefit law compliance, and other services. The Company provides an HR technology platform with online and mobile tools that allow its clients and their worksite employees (WSEs) to store, view and manage their HR-related information and conducts a range of HR-related transactions anytime and anywhere. The Company’s clients are distributed across a range of industries, including technology, life sciences, not-for-profit, professional services, financial services, property management, retail, manufacturing, and hospitality.

The Company delivers a suite of products and services, which allow its clients and their WSEs to administer and manage HR-related compensation and benefits, including payroll, health insurance, and worker’s compensation programs, through its technology platform. The Company’s HR technology platform, with online and mobile tools, allows its clients and WSEs to store, view and manage HR information and administer a range of HR transactions, such as payroll processing, tax administration, employee onboarding and termination, compensation reporting, expense management, and benefits enrollment and administration. The Company’s HR products and solutions include capabilities, such as technology platform, HR expertise, benefits, and compliance.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in TriNet Group Inc as long as the indicators that I describe in my book The Confident Investor are favorable.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of TriNet Group Inc calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $57.08
  • Growth: 0.18
  • Current EPS (TTM): $2.83
  • P/E: 20
  • Future EPS Calc: $6.47
  • Future Stock Price Calc: $129.48
  • Target stock price: $80.4

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I hope that this makes you a Confident Investor.

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