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Tiptree Financial (TIPT)
NASDAQ:TIPT
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Tiptree Financial
(NASDAQ:TIPT)
76Outperform
Tiptree Financial (TIPT) vs. S&P 500 (SPY)
Market Cap
$830.11M
Dividend Yield1.15%
Average Volume (3M)216.53K
Price to Earnings (P/E)17.0
Beta (1Y)0.79
Revenue Growth24.23%
EPS Growth280.49%
CountryUS
Employees1,496
SectorFinancial
Sector Strength79
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)1.32
Shares Outstanding37,493,880
10 Day Avg. Volume247,599
30 Day Avg. Volume216,529
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)N/A
Price to Sales (P/S)0.42
Price to Cash Flow (P/CF)3.10
P/FCF Ratio3.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Tiptree Financial Business Overview & Revenue Model
Company DescriptionTiptree Inc., through its subsidiaries, underwrites and administers specialty insurance products primarily in the United States. The company operates in two segments, Insurance and Mortgage. It offers niche commercial and personal lines insurance, credit insurance and collateral protection products, and warranty and service contract products and solutions, as well as premium finance services. The company also offers mortgage loans for institutional investors; and maritime shipping services, as well as invests in shares. It markets its products through a network of independent insurance agents, consumer finance companies, auto dealers, retailers, brokers, and managing general agencies. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was incorporated in 2007 and is based in New York, New York.
How the Company Makes MoneyTiptree Financial makes money through a combination of premium income from its Specialty Insurance segment and fees from its Asset Management activities. In the Specialty Insurance segment, revenue is generated from the sale of various insurance products, which include warranty and credit protection. These products provide coverage for specific risks, and the company earns income through the premiums paid by policyholders. Additionally, Tiptree may earn investment income from the reserves held to pay future claims. In the Asset Management segment, Tiptree earns management fees based on the assets under management (AUM), as well as performance fees if certain investment benchmarks are met or exceeded. The company may also benefit from strategic partnerships that enhance its product offerings or expand its market reach, contributing to its overall earnings.
Tiptree Financial Financial Statement Overview
Summary
Overall, Tiptree Financial shows strong revenue growth and efficient cost management, contributing to high gross and EBIT margins. The elimination of debt enhances financial stability, though equity levels could be bolstered. Cash flow management is commendable, with significant free cash flow growth, although there remains room for optimizing net income conversion. The company is on a positive trajectory but should focus on improving net profit margins and equity strength.Income Statement
Tiptree Financial has shown significant revenue growth with a 23.8% increase from 2023 to 2024. The gross profit margin is strong at 90%, reflecting efficient cost management. The EBIT margin improved to 70.2%, indicating enhanced profitability. However, the net profit margin stands at a modest 2.6%, suggesting room for improvement in bottom-line profitability.82
Very Positive
Balance Sheet
The company exhibits a solid financial structure with no debt in 2024, significantly reducing financial risk. The equity ratio is stable at 8%, but there's potential for strengthening equity levels. Return on Equity (ROE) is at 11.7%, showing a reasonable return on shareholders' investments, yet it implies potential for higher returns.75
Positive
Cash Flow
Tiptree Financial displays robust cash flow management, with a significant increase in free cash flow, growing by 312.2% from 2023 to 2024. The operating cash flow to net income ratio of 4.5 suggests strong cash generation relative to earnings. However, free cash flow to net income is lower at 4.4, indicating potential areas for improvement in cash utilization.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.04B | 1.65B | 1.40B | 1.20B | 810.30M | Gross Profit |
| 1.84B | 444.20M | 1.22B | 995.12M | 637.56M | EBIT |
| 1.43B | 249.26M | 50.25M | 13.11M | -94.69M | EBITDA |
| 168.92M | 134.21M | 77.17M | 127.45M | 11.31M | Net Income Common Stockholders |
| 53.37M | 13.95M | 3.56M | 38.13M | -25.23M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.43B | 472.53M | 1.15B | 753.17M | 514.05M | Total Assets |
| 5.69B | 5.14B | 4.04B | 3.60B | 3.00B | Total Debt |
| 428.68M | 475.00M | 319.99M | 459.48M | 366.25M | Net Debt |
| 108.61M | 6.29M | -218.07M | 283.76M | 229.33M | Total Liabilities |
| 5.04B | 4.56B | 3.51B | 3.20B | 2.62B | Stockholders Equity |
| 457.70M | 416.87M | 397.37M | 382.95M | 356.14M |
| Cash Flow | Free Cash Flow | |||
| 236.72M | 57.42M | 452.35M | 201.55M | 133.47M | Operating Cash Flow |
| 240.76M | 71.45M | 463.07M | 204.32M | 140.17M | Investing Cash Flow |
| -322.99M | -244.67M | 9.51M | -273.76M | -123.49M | Financing Cash Flow |
| 6.29M | 113.41M | -115.19M | 73.73M | 31.75M |
Tiptree Financial Technical Analysis
Neutral
22.14
Price Trends
21.88
Positive
21.37
Positive
20.00
Positive
Market Momentum
0.67
Positive
57.63
Neutral
32.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIPT, the sentiment is Neutral. The current price of 22.14 is below the 20-day moving average (MA) of 23.12, above the 50-day MA of 21.88, and above the 200-day MA of 20.00, indicating a neutral trend. The MACD of 0.67 indicates Positive momentum. The RSI at 57.63 is Neutral, neither overbought nor oversold. The STOCH value of 32.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TIPT.
Tiptree Financial Risk Analysis
Tiptree Financial disclosed 71 risk factors in its most recent earnings report. Tiptree Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tiptree Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.69B | 19.24 | 23.10% | 1.47% | 10.06% | -13.72% | |
76 Outperform | $830.11M | 17.04 | 12.19% | 1.15% | 24.23% | 280.49% | |
75 Outperform | $13.59B | 8.13 | 17.26% | 2.31% | 4.03% | 45.42% | |
68 Neutral | $5.09B | 1.62 | 43.24% | 6.22% | 47.95% | ― | |
66 Neutral | $3.96B | 10.57 | 17.14% | 1.77% | 7.83% | 55.84% | |
65 Neutral | $47.24B | 11.67 | 15.41% | 3.19% | 6.10% | 225.22% | |
64 Neutral | $13.44B | 9.41 | 9.19% | 4.92% | 16.30% | -8.66% |
* Financial Sector Average
Performance Comparison
TIPT
Tiptree Financial
22.14
6.50
41.56%
CNO
CNO Financial
39.50
14.81
59.98%
LNC
Lincoln National
33.01
5.23
18.83%
MET
Metlife
75.24
6.30
9.14%
PRI
Primerica
248.59
28.21
12.80%
UNM
Unum Group
73.82
24.92
50.96%
Tiptree Financial Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 1.37% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong financial performance with significant revenue and income growth, particularly in the insurance and investment segments. Although there were some challenges like a high tax rate and a tough environment for the mortgage business, the positive aspects significantly outweighed the negatives.Highlights
Revenue Growth
Year-to-date revenues increased by 28% from the prior year, driven by strong performance across the business sectors.
Fortegra's Performance
Fortegra's revenue growth was 28% with adjusted net income growth of 38%, fueled by expansion in specialty insurance lines.
Improved Combined Ratio
Fortegra's combined ratio improved to 90% despite several catastrophic events, showcasing underwriting discipline.
Investment Portfolio Growth
Tiptree Advisors ended the quarter with $1.5 billion of investable assets, focusing on high-quality liquid fixed income securities.
Adjusted Net Income
Adjusted net income for the quarter was $27.9 million, representing a 56% increase, driven by strong underwriting and investment income.
Significant Recovery of Unrealized Losses
Book value per share increased by 18.6% from the prior year, driven by earnings growth and significant recovery of unrealized losses on Fortegra's fixed income portfolio.
Positive Outlook for Mortgage Business
Reliance mortgage business achieved profitability with increased volumes and fee income, anticipating future profit as mortgage rates tighten.
Lowlights
High GAAP Tax Rate
Tiptree's GAAP tax rate for the quarter was 44%, though the effective tax rate was 28% when adjusted for book tax implications.
Challenging Operating Environment for Reliance
Reliance faced a tough operating environment, although it managed to remain profitable.
Company Guidance
During the third quarter 2024 earnings call for Tiptree Inc., executives highlighted several key financial metrics that underscore the company's strong performance and future prospects. Year-to-date revenues increased by 28% compared to the previous year, while the adjusted return on equity reached 22%. Fortegra, Tiptree's insurance company, reported a 28% growth in revenue and a 38% rise in adjusted net income, with gross written premiums totaling $2.2 billion, marking a 10% increase year-over-year. The insurance segment maintained a robust combined ratio of 90%, demonstrating disciplined underwriting despite recent catastrophic events. Tiptree's investment portfolio amounted to $1.5 billion, predominantly invested in high-quality liquid fixed income securities, contributing to a book yield of 4.1%. Consolidated net income for the quarter was $11.9 million, a significant increase from $2.2 million in the prior year, with adjusted net income surging by 56% to $27.9 million. The company's mortgage business also showed resilience, with origination volumes rising modestly and contributing to profitability. Overall, Tiptree's book value per share increased by 18.6% from the prior year, bolstered by earnings growth and a recovery in Fortegra's fixed income portfolio.Tiptree Financial Corporate Events
DividendsFinancial Disclosures
Tiptree Financial Reports Strong Q4 2024 Results
Positive
Feb 26, 2025
On February 26, 2025, Tiptree Inc. announced its financial results for the fourth quarter and year ending December 31, 2024, highlighting a significant increase in revenues and net income driven by growth in its specialty insurance lines and improved mortgage operations. The board also declared a cash dividend of $0.06 per share, with a record date of March 10, 2025, and a payment date of March 17, 2025, reflecting the company’s strong financial performance and commitment to returning value to shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.