Tiptree Financial (TIPT) AI Stock Analysis

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Tiptree Financial

(NASDAQ:TIPT)

Rating:76Outperform

Price Target:

$28.00

▲(16.91%Upside)

Tiptree Financial shows strong financial performance with robust revenue growth, efficient cost management, and no debt, contributing to financial stability. Technical indicators suggest positive momentum, though caution is advised due to the RSI nearing overbought levels. Valuation is fair, but the dividend yield is low. Positive corporate events further enhance the stock's attractiveness.

Tiptree Financial (TIPT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$898.05M

Dividend Yield1%

Average Volume (3M)167.46K

Price to Earnings (P/E)19.5

Beta (1Y)0.64

Revenue Growth15.76%

EPS Growth105.98%

CountryUS

Employees1,496

SectorFinancial

Sector Strength82

IndustryInsurance - Specialty

Share Statistics

EPS (TTM)0.13

Shares Outstanding37,496,980

10 Day Avg. Volume219,543

30 Day Avg. Volume167,461

Financial Highlights & Ratios

PEG Ratio-1.51

Price to Book (P/B)1.24

Price to Sales (P/S)0.00

P/FCF Ratio1.09

Enterprise Value/Market Cap0.44

Enterprise Value/Revenue0.05

Enterprise Value/Gross Profit0.21

Enterprise Value/Ebitda0.52

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Tiptree Financial Business Overview & Revenue Model

Company DescriptionTiptree Financial Inc. (TIPT) is a diversified holding company that operates primarily in the financial services sector. It is engaged in providing insurance, insurance-related services, and specialty finance services. The company operates through subsidiaries that offer a range of products including life insurance, niche insurance services, and related financial solutions. Tiptree Financial is committed to delivering tailored financial products and services to meet the unique needs of its clients in various sectors.

How the Company Makes MoneyTiptree Financial generates revenue through its diversified portfolio of financial services and products. The company's primary revenue streams include premiums from its insurance operations, where it provides life insurance and specialty insurance products. Additionally, Tiptree earns income from its specialty finance operations, which may include asset management and lending services. The company's earnings are further supported by strategic investments and partnerships that enhance its service offerings and expand its market reach. Tiptree's financial performance is influenced by its ability to effectively manage risk, optimize its investment portfolio, and leverage its expertise in niche markets.

Tiptree Financial Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q3-2024)

% Change Since: 7.64%|

Next Earnings Date:Jul 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.

Q3-2024 Updates

Positive Updates

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.

Negative Updates

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 Financial Statement Overview

Summary

Tiptree Financial demonstrates strong revenue growth and efficient cost management, leading 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

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.04B	2.04B	1.65B	1.40B	1.20B	810.30M
Gross Profit	1.88B	1.84B	444.20M	1.22B	995.12M	637.56M
EBITDA	200.42M	203.22M	134.21M	77.17M	127.45M	11.31M
Net Income	49.95M	53.37M	13.95M	3.56M	38.13M	-25.23M
Balance Sheet
Total Assets	5.82B	5.69B	5.14B	4.04B	3.60B	3.00B
Cash, Cash Equivalents and Short-Term Investments	1.50B	1.43B	472.53M	1.15B	753.17M	514.05M
Total Debt	0.00	428.68M	475.00M	319.99M	459.48M	366.25M
Total Liabilities	5.14B	5.04B	4.56B	3.51B	3.20B	2.62B
Stockholders Equity	473.72M	457.70M	416.87M	397.37M	382.95M	356.14M
Cash Flow
Free Cash Flow	140.37M	236.72M	57.42M	452.35M	201.55M	133.47M
Operating Cash Flow	144.73M	240.76M	71.45M	463.07M	204.32M	140.17M
Investing Cash Flow	-381.77M	-322.99M	-244.67M	9.51M	-273.76M	-123.49M
Financing Cash Flow	59.85M	6.29M	113.41M	-115.19M	73.73M	31.75M

Tiptree Financial Technical Analysis

Technical Analysis Sentiment

Positive

Last Price23.95

Price Trends

50DMA

22.40

Positive

100DMA

22.25

Positive

200DMA

21.27

Positive

Market Momentum

MACD

0.36

Negative

RSI

56.74

Neutral

STOCH

58.89

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TIPT, the sentiment is Positive. The current price of 23.95 is above the 20-day moving average (MA) of 23.21, above the 50-day MA of 22.40, and above the 200-day MA of 21.27, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 58.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIPT	76 Outperform	$898.05M	19.47	11.12%	1.00%	15.76%	105.98%
EIG	72 Outperform	$1.15B	11.57	9.84%	2.68%	-0.88%	-12.63%
AMSF	72 Outperform	$834.21M	17.65	16.89%	3.56%	-2.51%	-22.68%
Sector *	67 Neutral	$17.07B	11.91	9.69%	3.75%	11.66%	-9.47%
ITIC	66 Neutral	$417.11M	14.08	11.69%	0.83%	15.22%	19.19%
HIPO	55 Neutral	$707.16M	―	-15.58%	―	77.44%	85.53%
AMBC	47 Neutral	$333.81M	66.39	-2.23%	―	10.50%	-92.02%

* Financial Sector Average

Performance Comparison

TIPT

Tiptree Financial

23.95

7.99

50.06%

AMSF

Amerisafe

43.79

4.10

10.33%

EIG

Employers Holdings

47.77

6.50

15.75%

ITIC

Investors Title Company

221.13

52.49

31.13%

AMBC

Ambac Financial

7.19

-4.91

-40.58%

HIPO

Hippo Holdings

28.11

12.48

79.85%

Tiptree Financial Corporate Events

DividendsFinancial Disclosures

Tiptree Financial Reports Strong Q1 2025 Results

Positive

Apr 30, 2025

Tiptree Inc. announced its first quarter 2025 financial results, highlighting a 20% adjusted return on average equity and a 13.5% growth in Fortegra’s premiums despite industry-wide catastrophic losses. The company declared a cash dividend of $0.06 per share, with a record date of May 12, 2025, and a payment date of May 19, 2025, reflecting its commitment to shareholder value.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 28, 2025