Trupanion (TRUP) AI Stock Analysis

• Market Cap: $2.05B
• Dividend Yield: N/A
• Average Volume (3M): 536.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.70
• Revenue Growth: 14.08%
• EPS Growth: 84.28%
• Country: US
• Employees: 1,130
• Sector: Financial
• Sector Strength: 67
• Industry: Insurance - Specialty
• EPS (TTM): 0.22
• Shares Outstanding: 42,783,676
• 10 Day Avg. Volume: 475,427
• 30 Day Avg. Volume: 536,107
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.30
• Enterprise Value/Gross Profit: 8.90
• Enterprise Value/Ebitda: 65.29
• 1Y Price Target: $59.67
• Price Target Upside: 22.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: $52.00 ▲(6.67% Upside)

Trupanion's overall stock score is primarily driven by strong earnings call guidance and improving financial performance, despite technical and valuation challenges. The company's focus on operational efficiencies and revenue growth is promising, but profitability and valuation concerns weigh on the score.

Positive Factors

Growth Strategy

Trupanion is in the early innings of reaccelerating its growth algorithm with stable leads and increasing PAC spend, allowing for better execution on growth acceleration.

Operational Metrics

Key operating metrics in the quarter included sequential growth in net new pets added, the core subscriber base, and core quarterly retention rates.

Negative Factors

Investor Concerns

Last quarter the stock traded off meaningfully with worries that these metrics were trending negative and could lead to a negative spiral in the business.

Margin Pressure

The company is threading the needle between margins and PAC spend, which should give some confidence in growth reacceleration.

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 makes money primarily through the sale of pet insurance policies. The company's revenue model is based on collecting monthly premiums from policyholders. These premiums are priced based on various factors, including the pet's breed, age, and location, as well as the coverage options selected by the pet owner. In addition to direct-to-consumer sales, Trupanion also partners with veterinary hospitals and clinics to promote its insurance products, which contributes to its customer acquisition and retention efforts. The company aims to maintain a sustainable loss ratio by carefully managing claims and underwriting processes, ensuring that premium income exceeds the cost of claims and operational expenses, thereby generating profit.

Trupanion Financial Statement Overview

Summary

Trupanion shows strong revenue growth and a stable balance sheet, though profitability is still a challenge. The company is improving its cash flow position, which is promising for its future financial health. Continued focus on cost management is essential to enhance overall financial performance.

Income Statement

Trupanion has shown consistent revenue growth, with a TTM revenue of $1.32 billion, up from $1.29 billion in the previous year. However, the company continues to face profitability challenges, as indicated by negative net income and EBIT margins. The gross profit margin stands at 14.65%, showing some improvement but still reflecting pressure on profitability.

Balance Sheet

The balance sheet reflects a stable equity position with a debt-to-equity ratio of 0.39, indicating moderate leverage. The equity ratio is 39.86%, suggesting a solid equity base relative to total assets. However, the company has a history of negative net income, which may affect future equity growth.

Cash Flow

Trupanion's cash flow is improving, with a positive free cash flow of $53.24 million in the TTM period, up from $38.57 million in the previous year. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net losses. However, the company must continue to manage capital expenditures carefully to sustain this positive trend.

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

Trupanion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRUP, the sentiment is Positive. The current price of 48.75 is below the 20-day moving average (MA) of 49.17, below the 50-day MA of 50.88, and above the 200-day MA of 46.36, indicating a neutral trend. The MACD of -0.87 indicates Positive momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 44.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRUP.

Trupanion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIG	72 Outperform	$957.39M	9.91	9.60%	2.96%	-0.88%	-12.63%
AMSF	72 Outperform	$853.06M	17.04	17.80%	10.13%	-2.51%	-22.68%
TIPT	68 Neutral	$765.38M	15.75	11.98%	1.14%	6.22%	79.14%
Sector *	67 Neutral	$17.02B	11.60	9.79%	3.95%	10.61%	2.06%
TRUP	63 Neutral	$2.05B	―	-1.34%	―	14.08%	84.28%
AMBC	55 Neutral	$395.10M	78.86	-2.23%	―	10.50%	-92.02%
HIPO	55 Neutral	$793.45M	―	-3.27%	―	77.44%	85.53%

Trupanion Corporate Events

Trupanion Holds Annual Meeting and Elects Directors

On June 11, 2025, Trupanion, Inc. held its Annual Meeting where stockholders elected nine directors to the board, ratified Ernst & Young LLP as the independent auditor for 2025, approved executive compensation for 2024, and decided on an annual frequency for future compensation votes. These decisions reflect the company’s commitment to maintaining strong governance and transparency, which could positively impact its market position and stakeholder confidence.

The most recent analyst rating on (TRUP) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Trupanion stock, see the TRUP Stock Forecast page.

Trupanion Receives Approval for $26M Dividend

On May 15, 2025, the New York Department of Financial Services approved a $26 million extraordinary dividend to be paid to Trupanion, Inc. by its wholly-owned subsidiary, American Pet Insurance Company. This approval could enhance Trupanion’s financial flexibility and potentially improve its market positioning, benefiting stakeholders by possibly increasing shareholder value.

The most recent analyst rating on (TRUP) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Trupanion stock, see the TRUP Stock Forecast page.