NasdaqCM:TIPT

Stock Analysis Report

Executive Summary

Tiptree Inc., through its subsidiaries, underwrites and administers specialty insurance products primarily in the United States.


Snowflake Analysis

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.5%

TIPT

-6.4%

US Insurance

-2.6%

US Market


1 Year Return

-19.1%

TIPT

-23.5%

US Insurance

-13.3%

US Market

Return vs Industry: TIPT exceeded the US Insurance industry which returned -23.5% over the past year.

Return vs Market: TIPT underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

TIPTIndustryMarket
7 Day-6.5%-6.4%-2.6%
30 Day-19.5%-24.4%-15.2%
90 Day-35.6%-31.7%-22.2%
1 Year-17.0%-19.1%-21.6%-23.5%-11.5%-13.3%
3 Year-22.0%-27.1%-10.1%-17.2%13.2%5.7%
5 Year-10.4%-19.0%12.5%-1.2%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TIPT ($5.07) is trading above our estimate of fair value ($0.22)

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


Price To Earnings Ratio

PE vs Industry: TIPT is poor value based on its PE Ratio (9.8x) compared to the Insurance industry average (8.1x).

PE vs Market: TIPT is good value based on its PE Ratio (9.8x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TIPT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TIPT is good value based on its PB Ratio (0.4x) compared to the US Insurance industry average (0.8x).


Next Steps

Future Growth

How is Tiptree forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.5%

Forecasted Insurance industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Tiptree has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Tiptree performed over the past 5 years?

25.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TIPT has a large one-off gain of $6.4M impacting its December 31 2019 financial results.

Growing Profit Margin: TIPT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TIPT has become profitable over the past 5 years, growing earnings by 25.5% per year.

Accelerating Growth: TIPT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TIPT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (43.7%).


Return on Equity

High ROE: TIPT's Return on Equity (4.9%) is considered low.


Next Steps

Financial Health

How is Tiptree's financial position?


Financial Position Analysis

Short Term Liabilities: TIPT's short term assets ($1.2B) do not cover its short term liabilities ($1.2B).

Long Term Liabilities: TIPT's short term assets ($1.2B) exceed its long term liabilities ($552.3M).


Debt to Equity History and Analysis

Debt Level: TIPT's debt to equity ratio (91%) is considered high.

Reducing Debt: TIPT's debt to equity ratio has increased from 90.8% to 91% over the past 5 years.

Debt Coverage: TIPT's debt is not well covered by operating cash flow (6.3%).

Interest Coverage: TIPT's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

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

3.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TIPT's dividend (3.16%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: TIPT's dividend (3.16%) is low compared to the top 25% of dividend payers in the US market (5.66%).


Stability and Growth of Payments

Stable Dividend: TIPT's dividend payments have been volatile in the past 10 years.

Growing Dividend: TIPT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), TIPT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Jonathan Ilany (66yo)

5.17s

Tenure

US$2,160,054

Compensation

Mr. Jonathan Ilany serves as President at Tiptree Asset Management Company, LLC. Mr. Ilany has been the Chief Executive Officer of Tiptree Financial Inc. since November 10, 2015 and served as its Co-Chief  ...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD2.16M) is above average for companies of similar size in the US market ($USD1.49M).

Compensation vs Earnings: Jonathan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Barnes
Executive Chairman of the Board9.67yrsUS$1.28m23.38% $41.1m
Jonathan Ilany
CEO & Director5.17yrsUS$2.16m2.91% $5.1m
Sandra Bell
Chief Financial Officer4.75yrsUS$934.38k0.025% $44.8k
Neil Rifkind
VP, General Counsel & Secretary6.75yrsUS$934.38k0.16% $289.3k
Julia Wyatt
Chief Operating Officer5.25yrsUS$850.10kno data
Timothy Schott
Principal Accounting Officerno dataUS$923.57kno data
Scott McKinney
Director of Financial Planning & Analysis and Investor Relationsno datano datano data

5.2yrs

Average Tenure

57yo

Average Age

Experienced Management: TIPT's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Barnes
Executive Chairman of the Board9.67yrsUS$1.28m23.38% $41.1m
Jonathan Ilany
CEO & Director5.17yrsUS$2.16m2.91% $5.1m
John Mack
Independent Director4.92yrsUS$166.36k0.13% $223.2k
Bradley Smith
Independent Director6.75yrsUS$151.36k0.17% $302.7k
Lesley Goldwasser
Lead Director3.67yrsUS$151.36k0.13% $232.9k
Dominique Mielle
Independent Director0.25yrno datano data
Paul Friedman
Independent Director3.67yrsUS$161.36k0.12% $210.7k

4.9yrs

Average Tenure

62yo

Average Age

Experienced Board: TIPT's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Tiptree Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tiptree Inc.
  • Ticker: TIPT
  • Exchange: NasdaqCM
  • Founded: 2007
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$175.916m
  • Shares outstanding: 34.43m
  • Website: https://www.tiptreeinc.com

Number of Employees


Location

  • Tiptree Inc.
  • 299 Park Avenue
  • 13th Floor
  • New York
  • New York
  • 10171
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TIPTNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDJun 2007

Biography

Tiptree Inc., through its subsidiaries, underwrites and administers specialty insurance products primarily in the United States. The company provides credit protection insurance, warranty and service contract products, and niche commercial and consumer insurance programs, as well as offers value-add services, including premium finance and business processing services. It also engages in asset management operations; the provision of mortgage loans for institutional investors; and other investment activities. Tiptree Inc. markets its products through a network of independent insurance brokers and managing general agencies. The company was formerly known as Tiptree Financial Inc. and changed its name to Tiptree Inc. in December 2016. Tiptree Inc. was incorporated in 2007 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 04:49
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.