Trisura Group Ltd (TSU) AI Stock Analysis

• Market Cap: C$2.09B
• Dividend Yield: N/A
• Average Volume (3M): 85.85K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 1.10
• Revenue Growth: 9.35%
• EPS Growth: 22.59%
• Country: CA
• Employees: 159
• Sector: Financial
• Sector Strength: 82
• Industry: Insurance - Specialty
• EPS (TTM): 0.70
• Shares Outstanding: 47,536,700
• 10 Day Avg. Volume: 76,634
• 30 Day Avg. Volume: 85,849
• PEG Ratio: -1.22
• Price to Book (P/B): 4.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$51.60
• Price Target Upside: 17.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 80 Outperform
• Price Target: C$50.00 ▲(13.58%Upside)

Trisura Group Ltd benefits from strong earnings growth and robust technical momentum. The positive earnings call and strategic corporate events further enhance its attractiveness. However, the need to improve cash flow conversion and address overbought technical indicators slightly temper the overall outlook.

Positive Factors

Financial Performance

Trisura Specialty net premium earned growth showed solid performance with a 21% increase.

Valuation

Valuation is seen as attractive with a 2.2x for a 17-18% ROE.

Negative Factors

Earnings

EPS miss attributable to higher corporate opex/higher tax rate.

Underwriting Income

Modestly weaker underwriting income as higher combined ratio more than offsets positive impact of better net premium earned.

Trisura Group Ltd Business Overview & Revenue Model

Company Description

Trisura Group Ltd., a specialty insurance company, operates in the surety, risk solutions, corporate insurance, and reinsurance businesses in Canada, the United States, and internationally. The company offers contract surety bonds, such as performance, and labor and material payment bonds primarily for the construction industry; commercial surety bonds, including license and permit, tax and excise, and fiduciary bonds to governments, regulatory bodies, or courts to guarantee compliance with legal or fiduciary obligations; and developer surety bonds comprising bonds to secure real estate developers' legislated deposit and warranty obligations on residential projects. It provides risk solutions, including warranty programs to program administrators, managing general agents, captive insurance companies, affinity groups, and reinsurers. The company also offers corporate insurance products that comprise directors' and officers' insurance for public, private, and non-profit enterprises; errors and omissions liability insurance for enterprises and professionals; business office package insurance for enterprises and professionals; and fidelity insurance for commercial and financial institutions. Trisura Group Ltd. was incorporated in 2017 and is headquartered in Toronto, Canada.

How the Company Makes Money

Trisura Group Ltd generates revenue primarily through underwriting and issuing insurance policies and collecting premiums from its clients. The company's key revenue streams include surety bonds, which provide a financial guarantee of performance or compliance, and various forms of corporate insurance products such as directors and officers liability insurance, professional liability insurance, and property and casualty insurance. Trisura also generates income through its reinsurance segment, in which it assumes risk from other insurance companies in exchange for a portion of the premium income. The company's earnings are further influenced by investment income derived from the management of premiums collected until claims are paid out. Significant partnerships with brokers and agents who distribute their products also play a crucial role in driving Trisura's revenue growth.

Trisura Group Ltd Financial Statement Overview

Summary

Trisura Group Ltd exhibits strong revenue growth and prudent leverage. However, challenges in converting income to cash and improving net profitability remain.

Income Statement

Trisura Group Ltd has demonstrated strong revenue growth with the latest TTM revenue at 1806.04M, significantly up from the previous period. The gross profit margin is impressive, showing efficient management of costs. However, the net profit margin has decreased, indicating rising expenses or lower profitability relative to revenue. EBIT and EBITDA margins also reflect a solid operational performance, but the decrease in net income suggests room for improvement in managing non-operational costs or taxes.

Balance Sheet

The company maintains a healthy equity ratio, showing a strong asset base supported by equity. The debt-to-equity ratio is low, reflecting prudent leverage use, which mitigates financial risk. ROE indicates that the company is generating reasonable returns on equity, although there is potential for enhancing shareholder value further. The balance sheet reflects stability with sufficient liquidity, but continued focus on increasing equity returns is advisable.

Cash Flow

Operating cash flow has seen a decline in the most recent period, impacting the cash flow score negatively. Free cash flow remains positive, but its growth rate has slowed. The operating cash flow to net income ratio is low, suggesting that a significant portion of reported income is not translating into cash. Improving cash conversion and managing capital expenditures effectively will be crucial to enhancing cash flow robustness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.81B	778.83M	2.84B	526.10M	349.88M	226.63M
Gross Profit	1.97B	778.83M	2.84B	526.10M	349.88M	226.63M
EBITDA	154.40M	163.19M	94.49M	38.39M	86.01M	43.22M
Net Income	111.47M	118.92M	66.94M	27.80M	62.56M	32.44M
Balance Sheet
Total Assets	4.59B	4.59B	3.58B	4.28B	3.00B	1.71B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.36B	611.52M	1.17B	341.32M	136.52M
Total Debt	107.49M	107.57M	84.70M	86.74M	84.68M	36.35M
Total Liabilities	3.77B	3.81B	2.97B	3.80B	2.64B	1.42B
Stockholders Equity	819.82M	785.27M	619.43M	483.29M	358.79M	289.86M
Cash Flow
Free Cash Flow	1.27M	115.89M	257.20M	148.80M	303.39M	82.05M
Operating Cash Flow	5.44M	119.73M	257.91M	150.93M	306.85M	83.34M
Investing Cash Flow	-421.57M	-471.81M	-117.34M	-241.99M	-148.65M	-94.40M
Financing Cash Flow	21.28M	22.04M	48.06M	141.59M	45.15M	63.63M

Trisura Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TSU, the sentiment is Positive. The current price of 44.02 is above the 20-day moving average (MA) of 42.08, above the 50-day MA of 39.91, and above the 200-day MA of 38.19, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 73.21 is Negative, neither overbought nor oversold. The STOCH value of 64.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TSU.

Trisura Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSU	80 Outperform	C$2.09B	18.85	15.04%	―	9.35%	22.59%
Sector *	62 Neutral	AU$9.99B	8.04	10.82%	5.10%	33.02%	38.31%
LRCDF		$1.01B	10.62	5.38%	6.02%	―	―
WED	61 Neutral	C$1.04B	12.73	-9.16%	―	100.87%	-110.30%
FN	57 Neutral	C$2.51B	14.39	24.01%	5.98%	13.85%	-33.76%
EHMEF		$2.00B	11.17	23.56%	3.40%	―	―
SGCFF		$843.69M	11.40	8.11%	4.15%	―	―

Trisura Group Ltd Corporate Events

Trisura Group Ltd. Announces Shareholder Meeting Results

Trisura Group Ltd. announced the results of its virtual annual and special meeting of shareholders, where all nine nominees proposed for election to the board of directors were successfully elected. This outcome reflects strong shareholder support for the current management and board, potentially reinforcing the company’s strategic direction and stability in the specialty insurance market.

The most recent analyst rating on (TSE:TSU) stock is a Buy with a C$51.00 price target. To see the full list of analyst forecasts on Trisura Group Ltd stock, see the TSE:TSU Stock Forecast page.

Trisura Group Reports Strong Q1 2025 Results with Record Book Value

Trisura Group Ltd. reported strong financial results for the first quarter of 2025, with an Operating ROE of 18.4% and operating net income of $34.2 million. The company’s growth was driven by a 28.1% increase in Primary lines and a strong underwriting performance, reflected in a combined ratio of 82.7%. Despite a slight decrease in gross premiums written due to non-renewed US programs, Trisura’s book value reached a record $820 million, supported by a conservative debt-to-capital ratio of 10.7%. These results underscore Trisura’s strategic execution and capacity for future growth.

Trisura Group Ltd. Schedules Q1 2025 Results Release and Conference Call

Trisura Group Ltd., a leading specialty insurance provider, has announced the release date for its first quarter 2025 results, which will be available after market close on May 1, 2025. The company will also host an earnings conference call on May 2, 2025, featuring key executives to discuss the financial results, providing insights into the company’s performance and strategic direction.