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Trinet GroupTNET -0.52%83 Degree of Financial Leverage is 1.25 as of Jun. 2026. GuruFocus rates TNET with a GF Score™ of 83/100 and a GF Value™ of $87.24 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,043 Business Services companies, Trinet Group ranks worse than 66.35% on this metric.
Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Trinet Group's Degree of Financial Leverage for the quarter that ended in Jun. 2026 was 1.25. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Trinet Group's Degree of Financial Leverage or its related term are showing as below:
TNET's Degree of Financial Leverage is ranked worse than 66.35% of 1043
companies
in the Business Services industry
Industry Median: 1.02
vs TNET: 1.25
Trinet Group (NYSE:TNET) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Trinet Group Degree of Financial Leverage Related Terms
Trinet Group Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Trinet Group's Degree of Financial Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TNET vs MAN, NSP, KFY: Degree of Financial Leverage Comparison
For the Staffing & Employment Services subindustry, Trinet Group's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Trinet Group Degree of Financial Leverage vs Business Services Industry
For the Business Services industry and Industrials sector, Trinet Group's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Trinet Group's Degree of Financial Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 1.25 mean?
Trinet Group (TNET) has a Degree of Financial Leverage of 1.25 as of Jun. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Trinet Group and its competitors. According to the industry distribution chart, Trinet Group ranks #692 out of 1043 companies in the Business Services industry, placing it in the top 66.3%.
Is Trinet Group's Degree of Financial Leverage too high?
Trinet Group's current Degree of Financial Leverage is 1.25. The Business Services industry median Degree of Financial Leverage is 1.02. Trinet Group's value of 1.25 is 22.5% above this industry median. Based on the distribution chart, Trinet Group ranks #692 out of 1043 companies in the Business Services industry, which is below the industry midpoint. Overall, Trinet Group has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Trinet Group's Degree of Financial Leverage compare to MAN and NSP?
According to the Business Services industry distribution chart, Trinet Group ranks #692 out of 1043 companies for Degree of Financial Leverage. This places Trinet Group in the lower half of its industry. The industry median Degree of Financial Leverage is 1.02. Trinet Group's value of 1.25 is 22.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Business Services company?
The median Degree of Financial Leverage among Business Services companies is 1.02, based on 1,043 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trinet Group's current Degree of Financial Leverage of 1.25 is 22.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Trinet Group and its competitors. For the Business Services industry, the median Degree of Financial Leverage is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trinet Group's current Degree of Financial Leverage is 1.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trinet Group stock overvalued right now?
Based on GuruFocus' analysis, Trinet Group (TNET) is currently considered Modestly Undervalued. The stock's GF Value™ is $87.24, compared to a current price of $69.06 — trading 20.8% below its estimated fair value. The current Degree of Financial Leverage is 1.25 and 22.5% above the Business Services industry median of 1.02. Trinet Group's overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Trinet Group (TNET), the current Degree of Financial Leverage is 1.25 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Trinet Group (TNET) Overvalued in 2026?
Based on GuruFocus' analysis, Trinet Group stock appears to be undervalued.
The current stock price of $69.06 is trading 20.8% below its estimated GF Value™ of $87.24.
GuruFocus considers Trinet Group to be Modestly Undervalued.
Key valuation signals for TNET:
Degree of Financial Leverage: 1.25
GF Value™: $87.24 vs. price of $69.06 (20.8% below fair value)
Industry Position: 22.5% above the Business Services median (#692 of 1043)
No single metric tells the full story. See the TNET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trinet Group Inc provides human resources solutions for small and medium-sized businesses through technology-enabled services. Its offerings include human capital expertise, employee benefits such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting. The company provides its services through professional employer organization (PEO) services delivered via a co-employment model, as well as administrative services organization (ASO) offerings. The majority of the company's revenue is derived from the insurance-related billings and administrative fees collected from PEO clients.
83GF Score
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