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TRUP

Trupanion NasdaqGM:TRUP Stock Report

Last Price

US$59.29

Market Cap

US$2.4b

7D

-8.6%

1Y

-30.2%

Updated

24 Sep, 2022

Data

Company Financials +
TRUP fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance0/6
Financial Health4/6
Dividends0/6

TRUP Stock Overview

Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Puerto Rico, and Australia.

Trupanion Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Trupanion
Historical stock prices
Current Share PriceUS$59.29
52 Week HighUS$158.25
52 Week LowUS$50.81
Beta1.94
1 Month Change-23.49%
3 Month Change-6.28%
1 Year Change-30.18%
3 Year Change135.56%
5 Year Change124.50%
Change since IPO420.09%

Recent News & Updates

Sep 08

Trupanion acquires Smart Paws

Trupanion (NASDAQ:TRUP) notifies the acquisition of Smart Paws GmbH , specializes exclusively in pet insurance and offers products developed by veterinarians and tailored to the needs of animals and their owners with operations in Germany and Switzerland, on August 31. Financial terms of the deal were not disclosed. The move provides immediate entry into Germany and Switzerland and accelerated access into other key European markets. With the addition, Trupanion builds on its international footprint, a key tenet of its 60-month plan. The Smart Paws team will continue to manage and administer all of their products and membership policies and will be a part of Trupanion’s international organization led by Simon Wheeler. The firm does not expect any material financial impact to its 2022 financial results as a result of the acquisition.

Aug 28

Saga Partners - Trupanion: GAAP Earnings A Poor Reflection Of True Earning Power

Summary We first bought Trupanion during Q3’18. Trupanion’s has grown subscription pets at an 18% CAGR and average revenue per pet (ARPP) at a 5% CAGR, providing a 23% subscription segment revenue CAGR. Current GAAP earnings are a poor reflection of Trupanion’s earning power today. Given TRUP's strong track record of earning a 30-40% ROI on pet acquisition spend, co. should continue to invest as much as possible to grow earnings power far into the future. The following segment was excerpted from this fund letter. Trupanion (TRUP) The Portfolio first bought Trupanion during Q3’18. Trupanion provides pet insurance to help owners budget for vet expenses if their pet needs care. While pet insurance has historically been a bad product with confusing, if not misleading, coverage that left pet owners and veterinarians distrustful of pet insurance, Trupanion simplified the product by providing comprehensive coverage and increased transparency to help customers and vets understand the value proposition. Trupanion’s competitive advantage primarily comes from being a low-cost provider. It integrates all the parts of the value chain that matter which creates efficiencies and a better customer experience. Unlike most competitors, Trupanion underwrites its own policies and doesn’t reinsure their policies. They have their own call centers, a national salesforce of Territory Partners, and process their own claims. The combination of these efforts reduces operating costs by ~20% relative to peers. These savings are used to offer customers higher payout ratios (~70% of premiums earned are paid out in vet claims) compared to an average of 50% for peers. This naturally attracts more customers over time which helps Trupanion scale operating costs further, which can further be share with customers. Other factors like the relationships that Territory Partners have with vets and hospitals, which typically take 2-3 years to build through repeated visits and its integrated automated claims software called Trupanion Express all feed into building its durable competitive advantage. From a financial performance perspective, Trupanion’s operating results have almost perfectly matched my initial expectations from four years ago. They have grown subscription pets at an 18% CAGR and average revenue per pet (ARPP) at a 5% CAGR, providing a 23% subscription segment revenue CAGR. Their business model has proven to be very predictable. I also want to note that Trupanion’s financials are a great example of a company that is investing through their income statement which results in no GAAP earnings and essentially breakeven cash flow. Trupanion spend a lot on growth marketing spend but should be viewed more as an investment to acquire an asset (new pet subscription) that lasts on average seven years. Therefore, current GAAP earnings are a poor reflection of Trupanion’s earning power today. A better reflection of earning power is operating income before pet acquisition spend which is adjusted operating income in the chart below. A test of whether they are actually earning a strong return on their investment marketing spend would be if they continued to invest available cash flows today yet experienced no growth in new pet subscriptions. This would indicate either bad investments or the need to invest so heavily to simply run-in place, suggesting a much lower earnings power. However, with only a ~2% penetration rate in North America vs. 5-25% in many other developed nations, and Trupanion’s strong track record of earning a 30-40% ROI on pet acquisition spend, the company should continue to invest as much as possible to grow earnings power far into the future.

Shareholder Returns

TRUPUS InsuranceUS Market
7D-8.6%-4.2%-5.2%
1Y-30.2%-2.9%-23.1%

Return vs Industry: TRUP underperformed the US Insurance industry which returned -2.9% over the past year.

Return vs Market: TRUP underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is TRUP's price volatile compared to industry and market?
TRUP volatility
TRUP Average Weekly Movement9.9%
Insurance Industry Average Movement4.2%
Market Average Movement6.9%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.8%

Stable Share Price: TRUP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: TRUP's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20001,131Darryl Graham Rawlingshttps://www.trupanion.com

Trupanion, Inc., together with its subsidiaries, provides medical insurance for cats and dogs on a monthly subscription basis in the United States, Canada, Puerto Rico, and Australia. The company operates in two segments, Subscription Business and Other Business. It serves pet owners and veterinarians.

Trupanion Fundamentals Summary

How do Trupanion's earnings and revenue compare to its market cap?
TRUP fundamental statistics
Market CapUS$2.42b
Earnings (TTM)-US$36.33m
Revenue (TTM)US$801.46m

3.0x

P/S Ratio

-66.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRUP income statement (TTM)
RevenueUS$801.46m
Cost of RevenueUS$644.61m
Gross ProfitUS$156.84m
Other ExpensesUS$193.18m
Earnings-US$36.33m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.89
Gross Margin19.57%
Net Profit Margin-4.53%
Debt/Equity Ratio17.2%

How did TRUP perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is TRUP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TRUP?

Other financial metrics that can be useful for relative valuation.

TRUP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3x
Enterprise Value/EBITDA-100.8x
PEG Ration/a

Price to Book Ratio vs Peers

How does TRUP's PB Ratio compare to its peers?

TRUP PB Ratio vs Peers
The above table shows the PB ratio for TRUP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average1.1x
AEL American Equity Investment Life Holding
0.8x-24.3%US$3.2b
CNO CNO Financial Group
0.9x-11.0%US$2.1b
PRI Primerica
2.6x10.3%US$4.6b
GNW Genworth Financial
0.2xn/aUS$1.8b
TRUP Trupanion
7.7x25.4%US$2.4b

Price-To-Book vs Peers: TRUP is expensive based on its Price-To-Book Ratio (7.7x) compared to the peer average (1.1x).


Price to Earnings Ratio vs Industry

How does TRUP's PE Ratio compare vs other companies in the US Insurance Industry?

Price-To-Book vs Industry: TRUP is expensive based on its Price-To-Book Ratio (7.7x) compared to the US Insurance industry average (1x)


Price to Book Ratio vs Fair Ratio

What is TRUP's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TRUP PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio7.7x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate TRUP's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of TRUP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate TRUP's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate TRUP's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Trupanion forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


25.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRUP is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TRUP is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TRUP is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TRUP's revenue (17.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: TRUP's revenue (17.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TRUP's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Trupanion performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-67.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TRUP is currently unprofitable.

Growing Profit Margin: TRUP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRUP is unprofitable, and losses have increased over the past 5 years at a rate of 67.2% per year.

Accelerating Growth: Unable to compare TRUP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TRUP is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-22.8%).


Return on Equity

High ROE: TRUP has a negative Return on Equity (-11.54%), as it is currently unprofitable.


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Financial Health

How is Trupanion's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: TRUP's short term assets ($462.5M) exceed its short term liabilities ($260.2M).

Long Term Liabilities: TRUP's short term assets ($462.5M) exceed its long term liabilities ($60.2M).


Debt to Equity History and Analysis

Debt Level: TRUP has more cash than its total debt.

Reducing Debt: TRUP's debt to equity ratio has increased from 13.4% to 17.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TRUP has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if TRUP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Trupanion current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TRUP has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.7yrs

Average management tenure


CEO

Darryl Graham Rawlings (53 yo)

22.67yrs

Tenure

US$4,962,422

Compensation

Mr. Darryl Graham Andrew Rawlings founded Trupanion, Inc. (also known as Vetinsurance International Inc) in 2000 and has been its Chief Executive Officer and Director since January 2001. Mr. Rawlings serve...


CEO Compensation Analysis

Compensation vs Market: Darryl Graham's total compensation ($USD4.96M) is about average for companies of similar size in the US market ($USD6.95M).

Compensation vs Earnings: Darryl Graham's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: TRUP's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: TRUP's board of directors are seasoned and experienced ( 14 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TRUP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

NasdaqGM:TRUP Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
24 Aug 22SellUS$216,513Gavin FriedmanIndividual3,000US$72.17
08 Aug 22SellUS$497,448Margaret ToothIndividual6,907US$72.02
13 May 22SellUS$66,710Margaret ToothIndividual1,000US$66.71
04 May 22BuyUS$6,584Andrew WolffIndividual100US$65.84
22 Feb 22BuyUS$19,543Andrew WolffIndividual250US$78.17
30 Nov 21SellUS$625,000Levitan Family Foundation, Endowment ArmCompany5,000US$125.00
29 Nov 21SellUS$626,040Levitan Family Foundation, Endowment ArmCompany5,000US$125.21
25 Nov 21SellUS$60,107Darryl Graham RawlingsIndividual480US$125.22
12 Nov 21SellUS$435,202Howard RubinIndividual3,468US$128.00
10 Nov 21SellUS$191,500Howard RubinIndividual1,532US$125.00

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 92.1% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
13.48%
BlackRock, Inc.
5,493,341$325.7m-2.03%0.01%
11.24%
Capital Research and Management Company
4,579,478$271.5m8.54%0.02%
9.64%
The Vanguard Group, Inc.
3,928,320$232.9m1.71%0.01%
8.93%
Nine Ten Capital Management, LLC
3,638,509$215.7m55.36%32.77%
8.92%
Aflac Incorporated
3,636,364$215.6m0%no data
5.5%
AllianceBernstein L.P.
2,242,007$132.9m-5.06%0.06%
3.68%
Wellington Management Group LLP
1,499,607$88.9m8.37%0.02%
3.63%
RenaissanceRe Holdings Ltd.
1,477,493$87.6m0%no data
3.49%
Darryl Graham Rawlings
1,422,152$84.3m-0.29%no data
3.36%
State Street Global Advisors, Inc.
1,368,151$81.1m9.68%no data
2.7%
ClearBridge Investments, LLC
1,100,728$65.3m0.08%0.06%
2.59%
Baillie Gifford & Co.
1,056,392$62.6m-0.77%0.03%
2.1%
Macquarie Investment Management Business Trust
857,700$50.9m11.36%0.06%
1.98%
Gilder Gagnon Howe & Co. LLC
806,133$47.8m23.26%0.83%
1.72%
Polar Capital Holdings plc
700,000$41.5m180%0.24%
1.59%
Geode Capital Management, LLC
647,812$38.4m0.37%0.01%
1.31%
Barclays PLC Private Banking & Investment Banking Investment
535,749$31.8m-3.7%0.05%
0.94%
Northern Trust Global Investments
382,177$22.7m-1.15%no data
0.87%
Morgan Stanley, Investment Banking and Brokerage Investments
354,822$21.0m-5.75%no data
0.83%
Marshall Wace LLP
340,011$20.2m70.89%0.06%
0.79%
Norges Bank Investment Management
322,464$19.1m0%no data
0.77%
BNY Mellon Asset Management
311,914$18.5m-0.97%no data
0.73%
Allianz Asset Management AG
298,620$17.7m0%0.02%
0.67%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
272,249$16.1m-1.91%0.01%
0.63%
Charles Schwab Investment Management, Inc.
255,209$15.1m-0.99%no data

Company Information

Trupanion, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Trupanion, Inc.
  • Ticker: TRUP
  • Exchange: NasdaqGM
  • Founded: 2000
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Implied Market Cap: US$2.416b
  • Shares outstanding: 40.75m
  • Website: https://www.trupanion.com

Number of Employees


Location

  • Trupanion, Inc.
  • 6100 4th Avenue South
  • Suite 200
  • Seattle
  • Washington
  • 98108
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRUPNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2014
TPWDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014
0LH0LSE (London Stock Exchange)YesCommon StockGBUSDJul 2014
TRUP *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2014

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.