TNET

Trinet Group Inc

Industrial/Transportation


Presented:03/11/2015
Price:$33.25
Cap:$2.32B
Current Price:$96.82
Cap:$4.81B

Presented

Date03/11/2015
Price$33.25
Market Cap$2.32B
Ent Value$2.73B
P/E RatioN/A
Book ValueN/A
Div YieldN/A
Shares O/S69.81M
Ave Daily Vol560,000
Short Int1.70%

Current

Price$96.82
Market Cap$4.81B
TriNet Group, Inc. provides human resources services to small and medium-sized businesses in the United States and Canada. The company offers services, such as payroll processing, human capital consulting, and employment law compliance, as well as employee benefits, including health insurance, retirement plans, and workers compensation insurance. It serves technology, life sciences, property management, professional services, banking and financial services, retail, manufacturing, and hospitality markets, as well as non-profit entities. TriNet Group, Inc. was formerly known as TriNet Employer Group, Inc. and changed its name to TriNet Group, Inc. in January, 2000. The company was founded in 1988 and is headquartered in San Leandro, California.

Publicly traded companies mentioned herein: Automatic Data Processing, Inc. (ADP), Insperity Inc (NSP), Paychex Inc (PAYX), TriNet Group, Inc. (TNET)

Highlights

The presenter is long shares of TriNet Group (TNET), a professional employer organization (PEO) that provides a cloud-based human resources solution to small to medium-sized businesses (SMBs). He thinks the risk/ reward is very favorable in the $30s, following a recent sell off, and sees the potential for shares to be worth $60+ over the next 24-48 months. He outlined the four components of his bullish thesis as follows:

  1. TNET has a long runway for growth, and currently serves as the HR department/ back office for 10,000+ SMBs in the US (the company defines SMBs as companies with between 1 and 500 employees). There should be a secular tailwind underpinning its expansion in the market (management sees 27 million businesses as targets), and it’s Ambrose platform is “excellent.” (Please note, the presenter is a client of TNET.)

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Idea Discussion

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