TSX:TSU

Stock Analysis Report

Executive Summary

Trisura Group Ltd., a specialty insurance company, operates in the surety, risk solutions, corporate insurance, and reinsurance businesses in Canada and the United States.

Rewards

Earnings are forecast to grow 85.52% per year

Revenue grew by 35.6% over the past year

Risk Analysis

Highly volatile share price over past 3 months

Profit margins (1.8%) are lower than last year (7%)



Snowflake Analysis

High growth potential with poor track record.

Share Price & News

How has Trisura Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TSU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.7%

TSU

-0.9%

CA Insurance

-0.4%

CA Market


1 Year Return

57.5%

TSU

21.0%

CA Insurance

10.5%

CA Market

Return vs Industry: TSU exceeded the Canadian Insurance industry which returned 21% over the past year.

Return vs Market: TSU exceeded the Canadian Market which returned 10.5% over the past year.


Shareholder returns

TSUIndustryMarket
7 Day4.7%-0.9%-0.4%
30 Day31.1%0.1%0.8%
90 Day47.9%9.6%1.7%
1 Year57.5%57.5%26.1%21.0%14.1%10.5%
3 Yearn/a19.2%6.1%16.1%5.6%
5 Yearn/a42.1%18.2%41.2%20.4%

Price Volatility Vs. Market

How volatile is Trisura Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Trisura Group undervalued compared to its fair value and its price relative to the market?

114.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TSU (CA$42.15) is trading above our estimate of fair value (CA$27.43)

Significantly Below Fair Value: TSU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TSU is poor value based on its PE Ratio (114.2x) compared to the Insurance industry average (13.4x).

PE vs Market: TSU is poor value based on its PE Ratio (114.2x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: TSU is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: TSU is overvalued based on its PB Ratio (2x) compared to the CA Insurance industry average (1.2x).


Next Steps

Future Growth

How is Trisura Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

85.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSU's forecast earnings growth (85.5% per year) is above the savings rate (1.4%).

Earnings vs Market: TSU's earnings (85.5% per year) are forecast to grow faster than the Canadian market (10.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TSU's revenue (44.1% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: TSU's revenue (44.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TSU's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Trisura Group performed over the past 5 years?

-64.1%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: TSU has high quality earnings.

Growing Profit Margin: TSU's current net profit margins (1.8%) are lower than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if TSU's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: TSU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TSU had negative earnings growth (-64.1%) over the past year, making it difficult to compare to the Insurance industry average (2.5%).


Return on Equity

High ROE: TSU's Return on Equity (1.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Trisura Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: TSU has a low level of unsold assets or inventory.

Debt Coverage by Assets: TSU's debt is covered by short term assets (assets are 17.4x debt).


Financial Institutions Analysis

Asset Level: TSU's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if TSU has a sufficient allowance for bad loans.

Low Risk Liabilities: TSU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if TSU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TSU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if TSU has an appropriate level of bad loans.


Next Steps

Dividend

What is Trisura Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TSU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TSU's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TSU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TSU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TSU's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Trisura Group's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

David Claire (33yo)

1.2yrs

Tenure

CA$1,012,408

Compensation

Mr. David James Claire has been the President and Chief Executive Officer of Trisura Group Ltd., since October 16, 2018 and Director since 2018. He serves as Chairman of the Board at Trisura Specialty Insu ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD765.82K) is about average for companies of similar size in the Canadian market ($USD681.79K).

Compensation vs Earnings: Insufficient data to compare David's compensation with company performance.


Management Age and Tenure

0.8yrs

Average Tenure

58yo

Average Age

Experienced Management: TSU's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

62yo

Average Age

Experienced Board: TSU's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: TSU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$663,45827 Sep 19
Eileen Sweeney
EntityIndividual
Role
Senior Key Executive
Executive VP & CFO of Trisura Specialty
Shares25,131
Max PriceCA$26.40
BuyCA$132,00027 Sep 19
Barton Hedges
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$26.40
BuyCA$594,00027 Sep 19
Gregory Ernest Morrison
EntityIndividual
Role
Member of the Board of Directors
Director
Shares22,500
Max PriceCA$26.40
BuyCA$10,000,00327 Sep 19
Partners Value Investments LP
EntityCompany
Shares378,788
Max PriceCA$26.40
BuyCA$132,00027 Sep 19
James Doyle
EntityIndividual
Role
Senior Key Executive
Chief Risk Officer & CEO of Reinsurance
Shares5,000
Max PriceCA$26.40
BuyCA$50,00227 Sep 19
David Claire
EntityIndividual
Role
Chief Executive Officer
President
Shares1,894
Max PriceCA$26.40
BuyCA$50,00227 Sep 19
Robert Taylor
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,894
Max PriceCA$26.40
BuyCA$52,80027 Sep 19
Paul Gallagher
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceCA$26.40
BuyCA$32,36509 Sep 19
Partners Value Investments LP
EntityCompany
Shares1,300
Max PriceCA$24.90
BuyCA$143,00003 Sep 19
James Doyle
EntityIndividual
Role
Senior Key Executive
Chief Risk Officer & CEO of Reinsurance
Shares5,000
Max PriceCA$28.60
BuyCA$8,25028 Aug 19
Gregory Ernest Morrison
EntityIndividual
Role
Member of the Board of Directors
Director
Shares300
Max PriceCA$27.50
BuyCA$5,50027 Aug 19
Gregory Ernest Morrison
EntityIndividual
Role
Member of the Board of Directors
Director
Shares200
Max PriceCA$27.50
BuyCA$627,00023 Aug 19
Partners Value Investments LP
EntityCompany
Shares22,000
Max PriceCA$28.50
BuyCA$120,85923 May 19
Barton Hedges
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceCA$30.23
SellCA$150,00001 Apr 19
Michael George
EntityIndividual
Shares5,000
Max PriceCA$30.00
SellCA$60,00027 Mar 19
Michael George
EntityIndividual
Shares2,000
Max PriceCA$30.00
BuyCA$10,36608 Mar 19
Partners Value Investments LP
EntityCompany
Shares400
Max PriceCA$25.92
SellCA$78,45002 Jan 19
Michael George
EntityIndividual
Shares3,000
Max PriceCA$26.15
BuyCA$334,88722 Dec 18
Partners Value Investments LP
EntityCompany
Shares13,000
Max PriceCA$25.76
BuyCA$103,91314 Dec 18
Partners Value Investments LP
EntityCompany
Shares4,000
Max PriceCA$25.98

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jimmy Doyle (60yo)

    Chief Risk Officer & CEO of Reinsurance

    • Tenure: 0yrs
    • Compensation: CA$621.94k
  • Eileen Sweeney (58yo)

    Executive VP & CFO of Trisura Specialty

    • Tenure: 0.8yrs
    • Compensation: CA$647.85k
  • Michael Beasley

    CEO & President of Trisura Specialty Insurance Company

    • Tenure: 0.8yrs
    • Compensation: CA$680.24k
  • David Scotland

    Chief Financial Officer

    • Tenure: 0.3yrs
  • David Claire (33yo)

    President

    • Tenure: 1.2yrs
    • Compensation: CA$1.01m

Board Members

  • George Myhal (63yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: CA$38.57k
  • Greg Morrison (61yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: CA$723.01k
  • Bart Hedges (53yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: CA$70.00k
  • Paul Gallagher (63yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: CA$75.00k
  • Bob Taylor (72yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: CA$95.00k
  • David Claire (33yo)

    President

    • Tenure: 1.2yrs
    • Compensation: CA$1.01m

Company Information

Trisura Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trisura Group Ltd.
  • Ticker: TSU
  • Exchange: TSX
  • Founded: 2017
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: CA$359.399m
  • Shares outstanding: 8.82m
  • Website: https://www.trisura.com/group

Number of Employees


Location

  • Trisura Group Ltd.
  • Bay Adelaide Centre
  • 333 Bay Street
  • Toronto
  • Ontario
  • M5H 2R2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSUTSX (The Toronto Stock Exchange)YesCommon SharesCACADMay 2017
TRRS.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2017
QPA1DB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2017
0AMJLSE (London Stock Exchange)YesCommon SharesGBCADMay 2017

Biography

Trisura Group Ltd., a specialty insurance company, operates in the surety, risk solutions, corporate insurance, and reinsurance businesses in Canada and the United States. The company offers contract suret ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:36
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.