Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

TriNet Group, Inc. (TNET)

Company Dividend Discount ModelIndustry: Staffing & Employment ServicesSector: Industrials

Valuation Snapshot

Stable Growth$21.98 - $32.60$27.05
Multi-Stage$35.54 - $39.00$37.24
Blended Fair Value$32.14
Current Price$66.89
Upside-51.95%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.760.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.95%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)133.00
(-) Cash Dividends Paid (M)51.00
(=) Cash Retained (M)82.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)26.6016.639.98
Cash Retained (M)82.0082.0082.00
(-) Cash Required (M)-26.60-16.63-9.98
(=) Excess Retained (M)55.4065.3872.03
(/) Shares Outstanding (M)49.0049.0049.00
(=) Excess Retained per Share1.131.331.47
LTM Dividend per Share1.041.041.04
(+) Excess Retained per Share1.131.331.47
(=) Adjusted Dividend2.172.382.51
WACC / Discount Rate8.65%8.65%8.65%
Growth Rate-1.12%-0.12%0.88%
Fair Value$21.98$27.05$32.60
Upside / Downside-67.15%-59.56%-51.27%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)133.00132.84132.68132.51132.35132.19136.16
Payout Ratio38.35%48.68%59.01%69.34%79.67%90.00%92.50%
Projected Dividends (M)51.0064.6678.2991.88105.45118.97125.95

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.65%8.65%8.65%
Growth Rate-1.12%-0.12%0.88%
Year 1 PV (M)58.9259.5160.11
Year 2 PV (M)65.0066.3267.66
Year 3 PV (M)69.5171.6473.82
Year 4 PV (M)72.6975.6778.75
Year 5 PV (M)74.7378.5882.60
PV of Terminal Value (M)1,400.581,472.851,548.08
Equity Value (M)1,741.431,824.591,911.01
Shares Outstanding (M)49.0049.0049.00
Fair Value$35.54$37.24$39.00
Upside / Downside-46.87%-44.33%-41.70%

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