TriNet Operating Margin vs. Price To Earnings To Growth

TNET Stock  USD 93.43  0.53  0.57%   
Based on TriNet's profitability indicators, TriNet Group is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in December. Profitability indicators assess TriNet's ability to earn profits and add value for shareholders.

TriNet Operating Profit Margin

0.0512

Price To Sales Ratio is likely to drop to 0.81 in 2024. Days Sales Outstanding is likely to drop to 33.19 in 2024. At this time, TriNet's Net Income Per Share is comparatively stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.140.2093
Way Down
Slightly volatile
Net Profit Margin0.080.0762
Sufficiently Up
Slightly volatile
Operating Profit Margin0.05120.0953
Way Down
Slightly volatile
Pretax Profit Margin0.110.1018
Significantly Up
Slightly volatile
Return On Assets0.110.1015
Significantly Up
Slightly volatile
For TriNet profitability analysis, we use financial ratios and fundamental drivers that measure the ability of TriNet to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well TriNet Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between TriNet's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of TriNet Group over time as well as its relative position and ranking within its peers.
  

TriNet's Revenue Breakdown by Earning Segment

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Is Human Resource & Employment Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of TriNet. If investors know TriNet will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about TriNet listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.45)
Dividend Share
0.75
Earnings Share
5.23
Revenue Per Share
98.945
Quarterly Revenue Growth
0.012
The market value of TriNet Group is measured differently than its book value, which is the value of TriNet that is recorded on the company's balance sheet. Investors also form their own opinion of TriNet's value that differs from its market value or its book value, called intrinsic value, which is TriNet's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because TriNet's market value can be influenced by many factors that don't directly affect TriNet's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between TriNet's value and its price as these two are different measures arrived at by different means. Investors typically determine if TriNet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, TriNet's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

TriNet Group Price To Earnings To Growth vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining TriNet's current stock value. Our valuation model uses many indicators to compare TriNet value to that of its competitors to determine the firm's financial worth.
TriNet Group is rated below average in operating margin category among its peers. It is currently regarded as top stock in price to earnings to growth category among its peers producing about  153.86  of Price To Earnings To Growth per Operating Margin. At this time, TriNet's Operating Profit Margin is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value TriNet by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

TriNet Price To Earnings To Growth vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

TriNet

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.05 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.

TriNet

PEG Ratio

 = 

PE Ratio

EPS Growth

 = 
7.22 X
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.

TriNet Price To Earnings To Growth Comparison

TriNet is currently under evaluation in price to earnings to growth category among its peers.

TriNet Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in TriNet, profitability is also one of the essential criteria for including it into their portfolios because, without profit, TriNet will eventually generate negative long term returns. The profitability progress is the general direction of TriNet's change in net profit over the period of time. It can combine multiple indicators of TriNet, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-2 M-2.1 M
Operating Income469 M250.9 M
Income Before Tax501 M526 M
Total Other Income Expense Net32 M33.6 M
Net Income375 M393.8 M
Income Tax Expense126 M132.3 M
Net Income Applicable To Common Shares408.2 M428.7 M
Net Income From Continuing Ops356 M221.3 M
Non Operating Income Net Other25.3 M26.6 M
Interest Income71 M74.5 M
Net Interest Income42 M44.1 M
Change To Netincome75.9 M38.5 M
Net Income Per Share 6.58  6.91 
Income Quality 1.45  1.38 
Net Income Per E B T 0.75  0.55 

TriNet Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on TriNet. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of TriNet position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the TriNet's important profitability drivers and their relationship over time.

Use TriNet in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if TriNet position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TriNet will appreciate offsetting losses from the drop in the long position's value.

TriNet Pair Trading

TriNet Group Pair Trading Analysis

The ability to find closely correlated positions to TriNet could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TriNet when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back TriNet - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling TriNet Group to buy it.
The correlation of TriNet is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as TriNet moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TriNet Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for TriNet can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your TriNet position

In addition to having TriNet in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Management Thematic Idea Now

Management
Management Theme
Companies providing management services to businesses. The Management theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Management Theme or any other thematic opportunities.
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Additional Tools for TriNet Stock Analysis

When running TriNet's price analysis, check to measure TriNet's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy TriNet is operating at the current time. Most of TriNet's value examination focuses on studying past and present price action to predict the probability of TriNet's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move TriNet's price. Additionally, you may evaluate how the addition of TriNet to your portfolios can decrease your overall portfolio volatility.