Trupanion (TRUP) AI Stock Analysis

• Market Cap: $1.63B
• Dividend Yield: N/A
• Average Volume (3M): 417.34K
• Price to Earnings (P/E): 106.0
• Beta (1Y): 1.37
• Revenue Growth: 12.50%
• EPS Growth: N/A
• Country: US
• Employees: 1,130
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 0.13
• Shares Outstanding: 43,198,166
• 10 Day Avg. Volume: 405,962
• 30 Day Avg. Volume: 417,341
• PEG Ratio: 2.68
• Price to Book (P/B): 6.29
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 52.68
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 9.14
• Enterprise Value/Ebitda: 43.26
• 1Y Price Target: $54.40
• Price Target Upside: 43.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.48
• Revenue Forecast (FY): $1.44B

• Rating: 69 Neutral
• Price Target: $41.00 ▲(8.49% Upside)

Trupanion's overall stock score is driven by strong financial performance and positive earnings call highlights, including record subscription income and strategic partnerships. However, the high P/E ratio and bearish technical indicators suggest caution. The company's recent corporate events, such as securing a credit facility, provide additional support for future growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Financial Flexibility

The new credit facility enhances Trupanion's financial flexibility, allowing for strategic investments and supporting sustainable growth.

Strategic Partnerships

Strategic partnerships expand market access and distribution channels, enhancing Trupanion's competitive position and growth potential.

Negative Factors

Low Net Profit Margin

A low net profit margin indicates limited profitability, which could hinder reinvestment and long-term financial health if not improved.

Challenges with Group Channel Expansion

Challenges in the group channel expansion may limit growth opportunities and hinder the realization of potential revenue streams.

Other Business Segment Growth Deceleration

Deceleration in other business segment growth could impact overall revenue diversification and long-term growth prospects.

Trupanion Business Overview & Revenue Model

Company Description

Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Puerto Rico, and Australia. The company operates in two segments, Subscription Business and Other Business. It serves pet owners and veterinarians. The company was formerly known as Vetinsurance International, Inc. changed its name to Trupanion, Inc. in 2013. The company was founded in 2000 and is headquartered in Seattle, Washington.

How the Company Makes Money

Trupanion generates revenue primarily through the sale of pet insurance policies. The company's revenue model is based on monthly premiums paid by policyholders, which are determined by factors such as the pet's age, breed, and location. Trupanion also earns money through its unique model of direct payments to veterinarians, which streamlines the claims process and enhances customer satisfaction. Key revenue streams include the growth in policyholder numbers, renewals of existing policies, and the expansion of its product offerings. Additionally, partnerships with veterinary clinics and pet retailers help Trupanion reach a broader audience, driving enrollment and contributing to its overall earnings.

Trupanion Financial Statement Overview

Summary

Trupanion has shown improvements in revenue growth and profitability metrics, particularly in gross profit margin. The balance sheet indicates a healthier leverage position and improved return on equity. Cash flow generation has strengthened, with notable growth in free cash flow. However, maintaining profitability and cash flow efficiency will be key to sustaining long-term growth.

Income Statement

Trupanion has shown a positive trend in revenue growth, with a TTM revenue growth rate of 2.9%. The gross profit margin has significantly improved to 52.7% in the TTM, indicating better cost management. However, the net profit margin remains low at 1.1%, suggesting limited profitability. The EBIT and EBITDA margins have improved but are still modest at 1.5% and 3.3%, respectively.

Balance Sheet

The company's debt-to-equity ratio has decreased to 0.31, indicating a healthier leverage position. Return on equity has turned positive at 4.5%, reflecting improved profitability. The equity ratio stands at 41.9%, suggesting a stable capital structure. However, the company needs to maintain this trajectory to ensure long-term financial stability.

Cash Flow

Trupanion's free cash flow has grown by 17.2% in the TTM, showing improved cash generation capabilities. The operating cash flow to net income ratio is 0.21, indicating moderate cash flow efficiency. The free cash flow to net income ratio is high at 85.6%, reflecting strong cash conversion. Continued focus on cash flow management will be crucial for future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.29B	1.11B	905.18M	698.99M	502.03M
Gross Profit	218.91M	178.80M	131.02M	122.19M	104.35M	81.90M
EBITDA	46.23M	21.33M	-20.48M	-29.01M	-23.25M	2.73M
Net Income	15.46M	-9.63M	-44.69M	-44.67M	-35.53M	-5.84M
Balance Sheet
Total Assets	880.17M	806.85M	782.95M	671.63M	562.58M	498.25M
Cash, Cash Equivalents and Short-Term Investments	348.53M	307.38M	277.17M	222.41M	213.41M	229.74M
Total Debt	114.54M	128.89M	128.93M	69.46M	0.00	0.00
Total Liabilities	511.61M	483.58M	479.23M	366.33M	230.38M	158.31M
Stockholders Equity	368.56M	323.27M	303.72M	305.30M	332.20M	339.94M
Cash Flow
Free Cash Flow	71.86M	38.57M	358.00K	-25.09M	-4.90M	14.09M
Operating Cash Flow	83.93M	48.29M	18.64M	-8.00M	7.46M	21.54M
Investing Cash Flow	-35.30M	-13.46M	7.64M	-67.52M	-51.91M	-76.75M
Financing Cash Flow	-19.46M	-3.96M	59.13M	60.74M	-1.13M	170.85M

Trupanion Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 37.79
• 50DMA: Negative
• 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 TRUP, the sentiment is Neutral. The current price of 37.79 is above the 20-day moving average (MA) of 36.68, below the 50-day MA of 38.87, and below the 200-day MA of 43.29, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 51.42 is Neutral, neither overbought nor oversold. The STOCH value of 67.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TRUP.

Trupanion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITIC	80 Outperform	$474.48M	13.22	13.12%	4.20%	13.47%	26.15%
AMSF	72 Outperform	$729.91M	14.77	16.95%	6.64%	-1.73%	-18.36%
TRUP	69 Neutral	$1.63B	106.00	4.49%	―	12.50%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EIG	67 Neutral	$961.88M	16.85	5.86%	2.94%	1.69%	-52.43%
TIPT	64 Neutral	$691.42M	16.12	10.46%	1.31%	4.44%	22.40%
HIPO	63 Neutral	$798.31M	8.55	25.65%	―	34.48%	―

Trupanion Corporate Events

Trupanion Secures $120 Million Credit Facility with PNC

On November 4, 2025, Trupanion entered into a new credit agreement with PNC Bank, securing a $120 million credit facility to enhance financial flexibility and support long-term growth. This facility, which replaces a prior agreement, offers a lower interest rate, allowing Trupanion to allocate capital towards strategic initiatives. The announcement coincides with Trupanion’s strong third-quarter financial results, including a 12% revenue increase to $366.9 million and a significant rise in net income to $5.9 million. The company continues to demonstrate robust financial performance, positioning itself for sustainable growth and expanded access to pet medical care.

Trupanion Appoints Bradley S. Powell to Board

On October 29, 2025, Trupanion, Inc. announced the appointment of Bradley S. Powell to its Board of Directors. Powell, who previously served as CFO at Expeditors International of Washington, brings extensive financial and strategic expertise to Trupanion. His appointment is expected to bolster Trupanion’s growth strategy and enhance shareholder value, as the company continues to scale its operations in the pet insurance industry.