Trisura Group Ltd (TSU) AI Stock Analysis

• Market Cap: C$2.01B
• Dividend Yield: N/A
• Average Volume (3M): 70.34K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.10
• Revenue Growth: 9.35%
• EPS Growth: 22.59%
• Country: CA
• Employees: 159
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 47,536,700
• 10 Day Avg. Volume: 69,674
• 30 Day Avg. Volume: 70,343
• 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$53.00
• Price Target Upside: 28.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: C$50.00 ▲(21.36%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

Underwriting Performance

The U.S. Programs segment has better underwriting income, impressively outperforming estimates with a 75.6% combined ratio.

Valuation

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

Negative Factors

Corporate Expenses

Higher corporate expenses and a higher tax rate were the main contributors to the EPS miss.

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 insurance policies and collecting premiums in its specialty sectors. The company earns money by assessing and pricing risk for its clients, and then collecting premiums in exchange for providing insurance coverage. In addition to underwriting activities, Trisura also earns investment income from its insurance float, which is the pool of premiums collected that can be invested until claims are paid out. Key revenue streams include premiums from surety bonds, corporate insurance policies, and reinsurance agreements. Strategic partnerships with brokers and agencies play a significant role in distributing their products and expanding their market reach, contributing to their overall earnings.

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: Neutral
• Last Price: 41.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TSU, the sentiment is Neutral. The current price of 41.2 is below the 20-day moving average (MA) of 43.69, below the 50-day MA of 42.33, and above the 200-day MA of 38.28, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 37.60 is Neutral, neither overbought nor oversold. The STOCH value of 11.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$2.01B	18.11	15.04%	―	9.35%	22.59%
Sector *	67 Neutral	$16.60B	11.20	9.14%	3.93%	10.99%	-3.70%
LRCDF	―	$983.40M	10.34	5.38%	6.08%	―	―
WED	61 Neutral	C$1.01B	12.73	-9.16%	―	100.87%	-110.30%
FN	57 Neutral	C$2.89B	15.75	24.57%	6.81%	13.85%	-33.76%
EHMEF	―	$2.11B	11.71	23.56%	2.85%	―	―
SGCFF	―	$755.03M	10.12	8.11%	4.37%	―	―

Trisura Group Ltd Corporate Events

Trisura Group Ltd. Schedules Q2 2025 Results Release and Conference Call

Trisura Group Ltd., a leading specialty insurance provider, announced the release schedule for its second quarter 2025 results and the timing of its earnings conference call. The results will be made public after market close on August 7, 2025, with a conference call for analysts and investors scheduled for the following day. This announcement provides stakeholders with a timeline for when they can expect to receive updates on the company’s financial performance, which is crucial for assessing its market position and operational strategies.

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 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.