Tiptree Financial (TIPT) AI Stock Analysis

• Market Cap: $694.44M
• Dividend Yield: 1.31%
• Average Volume (3M): 209.81K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.60
• Revenue Growth: 4.44%
• EPS Growth: 22.40%
• Country: US
• Employees: 1,496
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 0.13
• Shares Outstanding: 37,823,734
• 10 Day Avg. Volume: 208,284
• 30 Day Avg. Volume: 209,810
• PEG Ratio: 0.04
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 3.25
• Enterprise Value/Market Cap: 2.27
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: 7.18
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $18.50 ▲(1.09% Upside)

Tiptree Financial's overall score is driven by strong corporate events and reasonable valuation. However, financial performance concerns and bearish technical indicators weigh down the score.

Positive Factors

Strategic Merger

The merger with DB Insurance is a strategic move that enhances Tiptree's market positioning and is expected to create long-term value.

Revenue Growth

A 9.3% increase in quarterly revenues indicates strong performance in earned premiums, supporting long-term growth potential.

Profitability Margins

Strong profitability margins and a healthy return on equity suggest effective management and operational efficiency, supporting sustainable growth.

Negative Factors

Declining Revenue Growth

Declining revenue growth raises concerns about the company's ability to maintain its market position and financial stability over time.

Free Cash Flow Concerns

A decline in free cash flow growth may limit Tiptree's ability to invest in new opportunities and meet financial obligations, impacting long-term growth.

Shareholder Opposition

Significant shareholder opposition to the Fortegra sale highlights governance challenges and potential misalignment with shareholder interests.

Tiptree Financial Business Overview & Revenue Model

Company Description

Tiptree 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 Money

Tiptree Financial generates revenue through multiple streams, primarily from its insurance operations, which include underwriting and premium income from specialty insurance products. Additionally, the company earns income from its investment management activities, which involve managing assets for third-party clients and generating management fees. Tiptree also benefits from investment income derived from its own portfolio of investments in various securities and real estate. Strategic partnerships with other financial institutions and service providers enhance its capabilities and market reach, contributing positively to its overall earnings.

Tiptree Financial Financial Statement Overview

Summary

Tiptree Financial presents a mixed financial picture. While the company maintains strong profitability margins and a healthy return on equity, the declining revenue growth and free cash flow are areas of concern. The balance sheet remains stable with moderate leverage, but the cash flow metrics suggest potential liquidity challenges.

Income Statement

Tiptree Financial's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth, which is concerning, but the company maintains a solid gross profit margin of 82.34%. The net profit margin is modest at 2.77%, and both EBIT and EBITDA margins are stable. However, the negative revenue growth trajectory is a potential risk.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.16 in the latest TTM, indicating moderate leverage. Return on equity is healthy at 11.84%, suggesting effective use of equity. The equity ratio is not explicitly provided, but the overall balance sheet suggests a balanced approach to debt and equity financing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which is a concern. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is strong at 96.10%, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.05B	2.04B	1.65B	1.40B	1.20B	810.30M
Gross Profit	1.06B	1.20B	1.05B	945.15M	873.50M	573.40M
EBITDA	219.24M	203.22M	134.21M	107.22M	127.45M	11.31M
Net Income	50.57M	53.37M	13.95M	-8.27M	38.13M	-29.16M
Balance Sheet
Total Assets	6.42B	5.69B	5.14B	4.04B	3.60B	3.00B
Cash, Cash Equivalents and Short-Term Investments	1.67B	1.43B	1.27B	1.15B	753.17M	514.05M
Total Debt	0.00	428.68M	407.81M	262.40M	387.75M	364.16M
Total Liabilities	5.67B	5.04B	4.56B	3.51B	3.20B	2.62B
Stockholders Equity	505.17M	457.70M	416.87M	397.37M	382.95M	356.14M
Cash Flow
Free Cash Flow	187.16M	236.72M	57.42M	452.35M	201.55M	133.47M
Operating Cash Flow	193.32M	240.76M	71.45M	463.07M	204.32M	140.17M
Investing Cash Flow	-299.68M	-322.99M	-244.67M	9.51M	-273.76M	-123.49M
Financing Cash Flow	82.32M	6.29M	113.41M	-115.19M	73.73M	31.75M

Tiptree Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 18.3 is below the 20-day moving average (MA) of 18.32, above the 50-day MA of 18.20, and below the 200-day MA of 21.21, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 49.25 is Neutral, neither overbought nor oversold. The STOCH value of 73.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TIPT.

Tiptree Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITIC	80 Outperform	$470.82M	13.12	13.12%	4.17%	13.47%	26.15%
AMSF	72 Outperform	$741.27M	15.00	16.95%	6.54%	-1.73%	-18.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EIG	67 Neutral	$951.32M	16.66	5.86%	2.98%	1.69%	-52.43%
TIPT	64 Neutral	$694.44M	16.19	10.46%	1.31%	4.44%	22.40%
HIPO	63 Neutral	$772.22M	8.20	25.65%	―	34.48%	―
AMBC	48 Neutral	―	―	-4.14%	―	-37.46%	-117.36%

Tiptree Financial Corporate Events

Tiptree Financial Announces Executive Departure and Severance

On December 5, 2025, Tiptree Inc. announced the separation of Neil Rifkind from his roles as Vice President, General Counsel, and Secretary as part of a legal department downsizing. The separation agreement entitles Mr. Rifkind to a cash severance of $1,600,000, unvested equity interests, and COBRA benefits under specific conditions, reflecting Tiptree’s strategic adjustments in its legal operations.

Tiptree Financial Approves Merger with Fortegra Group

On December 3, 2025, Tiptree Inc. held a Special Meeting of Stockholders to approve a merger agreement involving The Fortegra Group, Inc. and DB Insurance Co. Ltd. The merger proposal was approved with approximately 81% of votes cast in favor. This transaction marks a significant milestone in Tiptree’s history of value creation, and the company expects to finalize the merger by mid-2026, pending customary closing conditions and regulatory approvals.

Tiptree Financial’s Fortegra Merger with DB Insurance

On November 24, 2025, Tiptree Inc. announced that Institutional Shareholder Services Inc. recommended shareholders vote in favor of the merger between The Fortegra Group, a Tiptree subsidiary, and DB Insurance Co., Ltd. This all-cash acquisition is seen as the best available option after exploring other transaction structures. The merger reflects Tiptree’s strong track record and is expected to deliver compelling value for stockholders, with a special meeting scheduled for December 3rd to finalize the vote.

Tiptree Financial Sells Reliance First Capital Stake

On October 31, 2025, Tiptree Inc. entered into a Purchase Agreement with Carrington Holding Company, LLC, to sell all outstanding membership interests of Reliance First Capital, LLC, a subsidiary of Tiptree, to Carrington. The transaction’s completion is contingent upon regulatory approvals and other customary conditions, with an outside date set for April 30, 2026. The agreement includes indemnification clauses and termination rights, emphasizing the allocation of risk between the parties rather than factual representations of Reliance’s condition.

Tiptree Financial Reports Q3 2025 Revenue Growth

On October 31, 2025, Tiptree Inc. announced its financial results for the third quarter of 2025, highlighting a 9.3% increase in quarterly revenues to $540.3 million, driven by growth in earned premiums and gains at Fortegra. The company also declared a cash dividend of $0.06 per share, with a record date of November 17, 2025, and a payment date of November 24, 2025. Tiptree agreed to sell Fortegra for $1.65 billion and its mortgage business, Reliance First Capital, for $51 million, with both transactions expected to close in 2026. These strategic moves are part of Tiptree’s focus on long-term value creation and streamlining operations.

Tiptree Financial Announces Merger with DB Insurance

On September 26, 2025, Tiptree Inc. entered into a merger agreement with DB Insurance Co., Ltd. for the acquisition of its subsidiary, The Fortegra Group, Inc., for $1.65 billion in cash. This strategic acquisition by DB Insurance, marking its largest U.S. market entry, is expected to enhance its global growth in the property and casualty markets and provide Fortegra with a strong capital base for continued growth. The merger, anticipated to close in mid-2026, is subject to regulatory approvals and stockholder consent, with implications for Tiptree’s operational focus and market positioning.