Trupanion (TRUP) AI Stock Analysis

• Market Cap: $2.00B
• Dividend Yield: N/A
• Average Volume (3M): 525.09K
• Price to Earnings (P/E): 182.3
• Beta (1Y): 1.73
• Revenue Growth: 13.11%
• EPS Growth: N/A
• Country: US
• Employees: 1,130
• Sector: Financial
• Sector Strength: 74
• Industry: Insurance - Specialty
• EPS (TTM): 0.22
• Shares Outstanding: 42,994,675
• 10 Day Avg. Volume: 506,015
• 30 Day Avg. Volume: 525,091
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 5.42
• Enterprise Value/Ebitda: 59.18
• 1Y Price Target: $55.60
• Price Target Upside: 19.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: $52.00 ▲(11.92% Upside)

Trupanion's overall stock score is driven by strong financial performance and positive earnings call sentiment. However, the high P/E ratio and mixed technical indicators present risks. The company's strategic improvements and raised guidance provide a positive outlook, but valuation concerns and technical weaknesses temper the overall score.

Positive Factors

Earnings

Trupanion's 2Q25 result came in well ahead of the forecast and consensus, primarily due to a one-time realized gain.

Price Objective

The price objective rises to $67, indicating potential for future growth and opportunity for investment.

Negative Factors

Cost Management

The medical loss ratio of 71.1% missed the forecast, which might indicate challenges in cost management.

Pet Acquisition Costs

Management expects pet acquisition costs to continue to increase, with growth in gross pet adds anticipated to follow.

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 earns money by charging monthly premiums to pet owners, which vary based on factors such as the pet's age, breed, and the specific coverage selected. Additionally, Trupanion benefits from a subscription-based model, providing a steady stream of recurring revenue as customers renew their policies each year. Key revenue streams include policy premiums, as well as potential investment income generated from the reserves set aside to pay future claims. Furthermore, Trupanion has established partnerships with veterinary clinics and hospitals, which can drive customer acquisition and enhance the company's market presence. These collaborations often involve integrated services that facilitate claims processing and payment, further strengthening Trupanion's business model.

Trupanion Financial Statement Overview

Summary

Trupanion shows strong revenue growth and a stable balance sheet, with improving cash flow. However, profitability challenges persist, as indicated by negative net income and EBIT margins. Continued focus on cost management and profitability is crucial.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.29B	1.11B	905.18M	698.99M	502.03M
Gross Profit	463.81M	178.80M	131.02M	122.19M	104.35M	81.90M
EBITDA	42.46M	21.33M	-20.48M	-29.01M	-23.25M	2.73M
Net Income	11.01M	-9.63M	-44.69M	-44.67M	-35.53M	-5.84M
Balance Sheet
Total Assets	847.79M	806.85M	782.95M	671.63M	562.58M	498.25M
Cash, Cash Equivalents and Short-Term Investments	319.60M	307.38M	277.17M	222.41M	213.41M	229.74M
Total Debt	114.47M	128.89M	128.93M	69.46M	0.00	0.00
Total Liabilities	492.33M	483.58M	479.23M	366.33M	230.38M	158.31M
Stockholders Equity	355.45M	323.27M	303.72M	305.30M	332.20M	339.94M
Cash Flow
Free Cash Flow	61.31M	38.57M	358.00K	-25.09M	-4.90M	14.09M
Operating Cash Flow	69.99M	48.29M	18.64M	-8.00M	7.46M	21.54M
Investing Cash Flow	-34.44M	-13.46M	7.64M	-67.52M	-51.91M	-76.75M
Financing Cash Flow	-19.06M	-3.96M	59.13M	60.74M	-1.13M	170.85M

Trupanion Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRUP, the sentiment is Negative. The current price of 46.46 is below the 20-day moving average (MA) of 48.11, below the 50-day MA of 50.63, and above the 200-day MA of 46.03, indicating a neutral trend. The MACD of -0.83 indicates Positive momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 10.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRUP.

Trupanion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIG	72 Outperform	$1.01B	10.49	9.60%	2.88%	2.32%	-11.91%
AMSF	72 Outperform	$873.38M	17.48	17.80%	9.83%	-0.86%	-11.19%
Sector *	68 Neutral	$17.69B	11.82	10.30%	3.73%	9.66%	0.42%
TIPT	68 Neutral	$868.88M	17.75	11.98%	2.11%	6.22%	79.14%
TRUP	65 Neutral	$2.00B	182.27	3.33%	―	13.11%	―
HIPO	55 Neutral	$842.44M	―	-3.27%	―	43.15%	94.09%
AMBC	49 Neutral	$404.16M	64.08	-4.09%	―	-17.06%	-118.90%

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.