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Trupanion (TRUP)
NASDAQ:TRUP
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Trupanion
(NASDAQ:TRUP)
63Neutral
Positive Factors
Customer Retention
Despite the price increases, customer retention remains high at roughly 98%.
Earnings
The company reported Q3 results that were ahead on revenue and adj. operating income.
Negative Factors
Financial Performance
Management expressed confidence that after months of significant margin pressure, Trupanion is approaching a sustainable margin position to support increased pet acquisition spend.
Trupanion (TRUP) vs. S&P 500 (SPY)
Market Cap
$1.91B
Dividend YieldN/A
Average Volume (3M)652.36K
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth14.08%
EPS Growth84.28%
CountryUS
Employees1,130
SectorFinancial
Sector Strength86
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)-0.03
Shares Outstanding42,783,676
10 Day Avg. Volume728,462
30 Day Avg. Volume652,359
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.90
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit9.64
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$51.00Price Target Upside15.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Trupanion Business Overview & Revenue Model
Company DescriptionTrupanion, 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 MoneyTrupanion makes money primarily through the collection of monthly premiums from its policyholders. The company's revenue model is based on a subscription-like service where pet owners pay a monthly fee in exchange for coverage of eligible veterinary expenses. Key revenue streams include premium payments from policyholders, underwriting fees, and investment income from the reserves held to pay future claims. Trupanion's earnings are influenced by factors such as the pricing of insurance policies, claim frequency and severity, and its ability to attract and retain customers. The company's partnerships with veterinary clinics also play a significant role, as they help facilitate direct payment for services, enhancing convenience for pet owners and potentially increasing customer retention.
Trupanion Key Performance Indicators (KPIs)
Any
Pets Enrolled
Tracks the number of pets covered by Trupanion, reflecting customer base size and potential for revenue growth through increased enrollments.
Tracks the number of pets covered by Trupanion, reflecting customer base size and potential for revenue growth through increased enrollments.
Data provided by:
Main Street Data
Main Street DataTrupanion Financial Statement Overview
Summary
Trupanion shows strong revenue growth and improving cash flows. However, profitability is a concern with ongoing net losses and negative net profit margins. The balance sheet is stable but not particularly strong in generating returns for shareholders.Income Statement
Trupanion has demonstrated consistent revenue growth with a TTM revenue increase of approximately 2.79% compared to the previous annual period. However, the company continues to face profitability challenges, with negative net income and negative EBIT margins. The gross profit margin stands at 14.65%, indicating some efficiency in revenue generation, but the negative net profit margin of -0.32% highlights ongoing losses.―
Balance Sheet
The balance sheet reflects a reasonable debt-to-equity ratio of 0.39, suggesting moderate leverage. The equity ratio of 39.86% indicates a balanced capital structure. However, the return on equity remains negative at -1.28%, which is a concern for shareholder returns. The company's financial position is stable but not overly strong, given the negative profitability metrics.55
Cash Flow
Trupanion's cash flow statement shows positive growth in operating cash flow, with a TTM operating cash flow to net income ratio of 14.50. The free cash flow has also improved significantly, showing a growth rate of 37.99% from the previous period. The positive free cash flow to net income ratio of 12.48 indicates better cash management despite net losses.―
| 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 | EBIT |
| -9.51M | -40.66M | -42.75M | -35.02M | -4.35M | EBITDA |
| 21.33M | -20.48M | -29.01M | -23.25M | 2.73M | Net Income Common Stockholders |
| -9.63M | -44.69M | -44.67M | -35.53M | -5.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 307.38M | 277.17M | 222.41M | 213.41M | 229.74M | Total Assets |
| 806.85M | 782.95M | 671.63M | 562.58M | 498.25M | Total Debt |
| 128.89M | 128.93M | 69.46M | 0.00 | 0.00 | Net Debt |
| -31.41M | -18.57M | 3.85M | -87.40M | -139.88M | 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
Positive
44.27
Price Trends
36.38
Positive
41.65
Positive
44.11
Negative
Market Momentum
2.09
Negative
67.42
Neutral
84.61
Negative
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 44.27 is above the 20-day moving average (MA) of 37.95, above the 50-day MA of 36.38, and above the 200-day MA of 44.11, indicating a neutral trend. The MACD of 2.09 indicates Negative momentum. The RSI at 67.42 is Neutral, neither overbought nor oversold. The STOCH value of 84.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRUP.
Trupanion Risk Analysis
Trupanion disclosed 57 risk factors in its most recent earnings report. Trupanion 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
Trupanion Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.17B | 11.66 | 9.84% | 2.49% | -0.88% | -12.63% | |
72 Outperform | $897.27M | 18.75 | 16.89% | 3.18% | -2.51% | -22.68% | |
67 Neutral | $803.94M | 17.22 | 11.12% | 1.13% | 15.76% | 105.98% | |
64 Neutral | $12.54B | 9.79 | 7.92% | 16985.69% | 12.58% | -6.07% | |
63 Neutral | $1.91B | ― | -1.34% | ― | 14.08% | 84.28% | |
55 Neutral | $604.22M | ― | -15.58% | ― | 77.44% | 85.53% | |
48 Neutral | $414.35M | 5.59 | 2.04% | ― | 46.32% | 640.18% |
* Financial Sector Average
Performance Comparison
TRUP
Trupanion
44.06
18.26
70.78%
AMSF
Amerisafe
47.41
4.27
9.90%
EIG
Employers Holdings
49.63
6.93
16.23%
AMBC
Ambac Financial
8.03
-10.13
-55.78%
TIPT
Tiptree Financial
21.45
4.64
27.60%
HIPO
Hippo Holdings
20.53
2.55
14.18%
Trupanion Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 21.49%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Trupanion's first quarter of 2025 showed strong financial performance and growth in key areas such as revenue, adjusted operating income, and operational efficiencies. However, the company faced challenges with adverse reserve development and retention of first-year customers. Despite market share losses in the previous year, the company is optimistic about future growth and improvements. Overall, the positive aspects of increased profitability, improved retention, and operational efficiencies outweigh the challenges faced.Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
Trupanion reported overachievement on both total revenue and total adjusted operating income in Q1 2025. Subscription adjusted operating income increased 53% year-over-year to over $30 million.
Core Subscription Business Growth
Revenue was $233 million, up 16% year-over-year, driven primarily by increases in average revenue per pet and a modest lift from growth in enrolled pets.
Improved Operational Efficiencies
The company achieved a substantial year-over-year increase of 350 basis points in value proposition, ending the quarter at 71.8% due to operational efficiencies and transition to the Vision technology platform.
Increase in Pet Acquisition Investment
Investment in pet acquisition increased 18% year-over-year, maintaining a 31% internal rate of return. The average profit per Trupanion Pet was up 46% year-over-year.
Improved Retention Rates
Monthly average retention improved quarter-on-quarter for the first time in 12 quarters to 98.28%, driven by improvements within the core Trupanion product.
Positive Financial Outlook for 2025
Full-year guidance was increased, with total revenue expected to be in the range of $1.39 billion to $1.425 billion and total adjusted operating income expected to grow by 15% year-over-year at the midpoint.
Negative Updates
Adverse Reserve Development
Q1 experienced adverse development from prior periods totaling $1.7 million or approximately 70 basis points of revenue.
Challenges in First-Year Retention
Retention for first-year customers declined significantly, attributed to a lack of focus on this segment as efforts were directed towards managing existing members with high rate increases.
Market Share Challenges
Trupanion experienced market share losses in 2024, attributed to the pullback on pet acquisition costs to focus on margin expansion.
Company Guidance
During Trupanion's first quarter 2025 earnings call, the company provided robust guidance, highlighting several key metrics. The subscription adjusted operating income surged by 53% year-over-year to over $30 million, driven by an improved loss ratio and operational efficiencies. Subscription revenue reached $233 million, marking a 16% increase compared to the previous year, largely due to a higher average revenue per pet and growth in enrolled pets. The value proposition also rose by 350 basis points, ending the quarter at 71.8%. Trupanion's focus on retention yielded results, as the monthly average retention improved to 98.28%, the first quarterly uptick in three years. The pet acquisition investment increased by 18% year-over-year, with an internal rate of return holding at 31%. Additionally, the company raised its full-year 2025 revenue guidance to between $1.39 billion and $1.425 billion, with subscription revenue expected to grow by approximately 14% year-over-year at the midpoint. For the second quarter, Trupanion forecasted total revenue to range from $344 million to $350 million, with subscription revenue anticipated to grow by 15% year-over-year at the midpoint.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.