Trinet Group Intrinsic Stock Value – Needham Gives TriNet Stock a ‘Buy’ Rating, Driving Prices Up
May 13, 2023
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TRINET ($NYSE:TNET): Needham recently gave TriNet stock a ‘Buy’ rating, driving prices up as a result. Needham cited the discounted price as the reason for their decision, making it an opportune time to invest. TriNet is a trusted human resources technology and services provider, offering cloud-based HR solutions designed to help its clients manage their HR processes. Investments in TriNet are expected to be a good long-term bet, and have been steadily increasing in value since Needham’s endorsement.
Share Price
When the market opened, TRINET GROUP stock was trading at $89.6 and closed at $91.8, a 3.3% increase from its prior closing price of $88.8. This news of the ‘Buy’ rating sent investors into a buying frenzy, pushing the stock prices up. Analysts predict that this trend is likely to continue as long as Needham maintains its positive outlook on TRINET GROUP. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Trinet Group. More…
| Total Revenues | Net Income | Net Margin |
| 4.91k | 340 | 6.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Trinet Group. More…
| Operations | Investing | Financing |
| 271 | -36 | 17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Trinet Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.74k | 2.91k | 13.86 |
Key Ratios Snapshot
Some of the financial key ratios for Trinet Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.4% | 14.9% | 10.2% |
| FCF Margin | ROE | ROA |
| 4.3% | 39.3% | 8.4% |
Analysis – Trinet Group Intrinsic Stock Value
At GoodWhale, we conducted an analysis of TRINET GROUP’s wellbeing to determine its intrinsic value. Our proprietary Valuation Line calculated the intrinsic value of TRINET GROUP share to be around $94.3. Currently, TRINET GROUP stock is trading at $91.8, which is a fair price considering it is slightly undervalued by 2.6%. We believe this is a great opportunity for investors to acquire a quality stock at an attractive price. More…
Peers
Its competitors are Insperity Inc, Paychex Inc, and Trucept Inc.
– Insperity Inc ($NYSE:NSP)
Inspriety Inc is a business services provider headquartered in Texas. The company offers a suite of human resources and business solutions to small and medium-sized businesses. Inspriety’s products and services include payroll, benefits, HR and talent management, time and attendance, and insurance. The company serves over 100,000 businesses across the United States.
Inspriety has a market cap of 4.12B as of 2022 and a ROE of 366.51%. The company’s strong market position and financial performance are attributable to its focus on providing quality products and services to its customers. Inspriety is well-positioned to continue its growth trajectory in the coming years.
– Paychex Inc ($NASDAQ:PAYX)
Paychex Inc is a leading provider of payroll and human resource outsourcing solutions for small- to medium-sized businesses. The company has a market cap of 40.42B as of 2022 and a return on equity of 38.35%. Paychex has been in business for over 40 years and has a long track record of providing quality services to its clients. The company offers a wide range of payroll and human resource outsourcing solutions, including payroll processing, tax compliance, benefits administration, and talent management. Paychex is a publicly traded company listed on the New York Stock Exchange (NYSE: PAYX).
– Trucept Inc ($OTCPK:TREP)
Trucept Inc. is a publicly traded American corporation with a market capitalization of 221.15 thousand as of 2022. The company is headquartered in Tulsa, Oklahoma and provides software and technology solutions to small and medium businesses. The company’s products and services include accounting, human resources, and customer relationship management. The company has a return on equity of 42.12%.
Summary
Trinet Group Inc. (NYSE: TNET) is a professional employer organization (PEO) that provides human resource solutions. Recently, Needham initiated coverage on Trinet with a Buy rating, citing its competitive advantages in the PEO industry and the stock’s current trading at a discount to its peers. This positive news drove the stock up on the same day and investors should consider investing in Trinet as it offers a unique competitive advantage. The company has also benefitted from a strong balance sheet with low debt levels, which has allowed it to reinvest in growth opportunities.
Additionally, Trinet offers investors potential for strong returns due to its focus on technology-driven solutions for clients. The company’s human capital management solutions have the potential to drive significant cost savings and efficiency, allowing customers to focus on their core business. Overall, Trinet presents a compelling opportunity for investors looking for high-quality growth at a reasonable price.
