Trisura Group Ltd (TSU) AI Stock Analysis

• Market Cap: C$1.77B
• Dividend Yield: N/A
• Average Volume (3M): 95.42K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.01
• Revenue Growth: 9.35%
• EPS Growth: 22.59%
• Country: CA
• Employees: 159
• Sector: Financial
• Sector Strength: 88
• Industry: Insurance - Specialty
• EPS (TTM): 0.70
• Shares Outstanding: 47,779,022
• 10 Day Avg. Volume: 97,564
• 30 Day Avg. Volume: 95,425
• PEG Ratio: N/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 Ratio: 0.00
• 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$49.80
• Price Target Upside: 38.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

Trisura Group Ltd demonstrates strong financial health and strategic growth initiatives, particularly in the U.S. market, supporting a positive outlook. While technical indicators show momentum, valuation remains fair, and challenges in profitability and cash flow conversion need addressing. The positive earnings call and corporate events further bolster confidence in the stock's potential.

Positive Factors

Financial Performance

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

Revenue Growth

Net premiums earned, a better indicator of revenue growth, was up an impressive 87% year-over-year.

Valuation

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

Negative Factors

Adverse Claims

U.S. Programs experienced weaker net underwriting income due to adverse weather-related claims and some reserve development.

Operating Expenses

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

Underwriting Income

Modestly weaker underwriting income as higher combined ratio (85.2% versus our perhaps aggressive 81.5% estimate) more than offsets positive impact of better net premium earned.

Trisura Group Ltd Business Overview & Revenue Model

Company Description

Trisura Group Ltd (TSU) is a specialty insurance provider headquartered in Canada with operations in both Canada and the United States. The company focuses on providing a range of insurance products and services, including surety, risk solutions, corporate insurance, and reinsurance. Trisura aims to offer innovative and comprehensive insurance solutions tailored to meet the specific needs of its clients across various industries.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
778.83M	2.84B	526.10M	349.88M	226.63M
	Gross Profit
778.83M	2.84B	526.10M	349.88M	226.63M
	EBIT
158.49M	2.83B	38.08M	80.44M	39.48M
	EBITDA
163.19M	94.49M	38.39M	86.01M	43.22M
	Net Income Common Stockholders
118.92M	66.94M	27.80M	62.56M	32.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.36B	611.52M	1.17B	341.32M	136.52M
	Total Assets
4.59B	3.58B	4.28B	3.00B	1.71B
	Total Debt
107.57M	84.70M	86.74M	84.68M	36.35M
	Net Debt
-162.80M	-519.32M	-319.63M	-256.64M	-100.17M
	Total Liabilities
3.81B	2.97B	3.80B	2.64B	1.42B
	Stockholders Equity
785.27M	619.43M	483.29M	358.79M	289.86M
Cash Flow		Free Cash Flow
115.89M	257.20M	148.80M	303.39M	82.05M
	Operating Cash Flow
119.73M	257.91M	150.93M	306.85M	83.34M
	Investing Cash Flow
-471.81M	-117.34M	-241.99M	-148.65M	-94.40M
	Financing Cash Flow
22.04M	48.06M	141.59M	45.15M	63.63M

Trisura Group Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 36.08 is below the 20-day moving average (MA) of 36.11, above the 50-day MA of 34.25, and below the 200-day MA of 38.40, indicating a neutral trend. The MACD of 0.90 indicates Positive momentum. The RSI at 51.67 is Neutral, neither overbought nor oversold. The STOCH value of 41.68 is Neutral, 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	78 Outperform	C$1.77B	15.90	15.04%	―	9.35%	22.59%
GSY	75 Outperform	$2.55B	9.66	23.56%	3.44%	18.04%	2.48%
SFC	70 Outperform	$1.08B	8.31	10.10%	4.88%	34.48%	-81.02%
Sector *	64 Neutral	$12.60B	9.73	7.92%	16985.68%	12.21%	-5.55%
WED	61 Neutral	C$1.11B	12.73	-3.32%	―	100.87%	-110.30%
FN	57 Neutral	C$2.23B	12.77	24.01%	6.53%	13.85%	-33.76%
LB	54 Neutral	$1.19B	―	-0.24%	6.88%	-3.68%	-111.41%

Trisura Group Ltd Corporate Events

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.

Spark’s Take on TSE:TSU Stock

According to Spark, TipRanks’ AI Analyst, TSE:TSU is a Outperform.

Trisura Group Ltd demonstrates strong financial health with robust profitability and low leverage, despite revenue challenges. Positive earnings call sentiment and strategic corporate events indicate future growth potential, although valuation is fair. Technical indicators suggest short-term momentum, yet caution is advised due to potential market fluctuations.

To see Spark’s full report on TSE:TSU stock, click here.

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.

Spark’s Take on TSE:TSU Stock

According to Spark, TipRanks’ AI Analyst, TSE:TSU is a Outperform.

Trisura Group Ltd demonstrates strong financial health with robust profitability and low leverage, despite revenue challenges. Positive earnings call sentiment and strategic corporate events indicate future growth potential, although valuation is fair. Technical indicators suggest short-term momentum, yet caution is advised due to potential market fluctuations.

To see Spark’s full report on TSE:TSU stock, click here.

Trisura Group Achieves Record Annual Results and Expands US Market Presence

Trisura Group Ltd. reported record-breaking annual financial results for 2024, with operating net income reaching $135.8 million. The company’s growth was driven by strong underwriting, increased net investment income, and strategic expansion in the US market. Despite challenges from non-renewed US programs, Trisura achieved significant increases in book value and net income. The company’s financial health is underscored by a conservative debt-to-capital ratio, supporting its capacity for further growth.