Trupanion (TRUP) AI Stock Analysis

• Market Cap: $2.41B
• Dividend Yield: N/A
• Average Volume (3M): 461.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: 14.08%
• EPS Growth: 84.28%
• Country: US
• Employees: 1,130
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Specialty
• EPS (TTM): -0.03
• Shares Outstanding: 42,783,676
• 10 Day Avg. Volume: 420,153
• 30 Day Avg. Volume: 461,350
• PEG Ratio: -3.56
• Price to Book (P/B): 12.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 304.60
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 6.69
• Enterprise Value/Ebitda: 17.50
• 1Y Price Target: $51.00
• Price Target Upside: -8.93% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: $58.00 ▲(3.57%Upside)

Trupanion's overall score reflects strong revenue growth and positive earnings call sentiment, balanced by ongoing profitability challenges and a high valuation. The stock's technical indicators suggest upward momentum, though caution is warranted due to potential overvaluation risks.

Positive Factors

Financial Performance

The first quarter was a slight beat and raise, giving more confidence that Trupanion’s core business has troughed and is in the early steps of reaccelerating.

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.

Negative Factors

Past Stock Performance

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.

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 generates revenue by collecting monthly premiums from pet owners who purchase their insurance plans. These premiums vary based on factors such as the pet’s breed, age, and location, which help determine the risk and cost associated with insuring each pet. Trupanion also establishes partnerships with veterinary clinics to facilitate direct payment of claims, providing a seamless experience for both pet owners and veterinarians and helping drive customer acquisition and retention. Additionally, Trupanion may earn revenue through ancillary services and products that complement its core insurance offerings.

Trupanion Financial Statement Overview

Summary

Trupanion demonstrates strong revenue growth and improving cash flows, but struggles with profitability due to net losses and negative net profit margins. The balance sheet is stable, yet return on equity is negative, highlighting concerns for shareholder returns.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.29B	1.11B	905.18M	698.99M	502.03M
Gross Profit	193.67M	178.80M	131.02M	122.19M	104.35M	81.90M
EBITDA	26.39M	21.33M	-20.48M	-29.01M	-23.25M	2.73M
Net Income	-4.26M	-9.63M	-44.69M	-44.67M	-35.53M	-5.84M
Balance Sheet
Total Assets	837.16M	806.85M	782.95M	671.63M	562.58M	498.25M
Cash, Cash Equivalents and Short-Term Investments	321.82M	307.38M	277.17M	222.41M	213.41M	229.74M
Total Debt	128.88M	128.89M	128.93M	69.46M	0.00	0.00
Total Liabilities	503.49M	483.58M	479.23M	366.33M	230.38M	158.31M
Stockholders Equity	333.67M	323.27M	303.72M	305.30M	332.20M	339.94M
Cash Flow
Free Cash Flow	53.24M	38.57M	358.00K	-25.09M	-4.90M	14.09M
Operating Cash Flow	61.82M	48.29M	18.64M	-8.00M	7.46M	21.54M
Investing Cash Flow	-19.69M	-13.46M	7.64M	-67.52M	-51.91M	-76.75M
Financing Cash Flow	-4.13M	-3.96M	59.13M	60.74M	-1.13M	170.85M

Trupanion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 56 is above the 20-day moving average (MA) of 51.70, above the 50-day MA of 45.59, and above the 200-day MA of 45.57, indicating a bullish trend. The MACD of 3.01 indicates Negative momentum. The RSI at 71.94 is Negative, neither overbought nor oversold. The STOCH value of 84.38 is Negative, 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	$1.11B	11.17	9.84%	2.78%	-0.88%	-12.63%
AMSF	72 Outperform	$818.59M	17.32	16.89%	3.63%	-2.51%	-22.68%
TRUP	70 Outperform	$2.41B	―	-1.34%	―	14.08%	84.28%
Sector *	67 Neutral	$16.51B	11.23	9.71%	3.96%	11.61%	-10.70%
TIPT	65 Neutral	$838.43M	18.18	11.12%	1.07%	15.76%	105.98%
HIPO	55 Neutral	$686.79M	―	-15.58%	―	77.44%	85.53%
AMBC	47 Neutral	$325.46M	65.37	-2.23%	―	10.50%	-92.02%

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.