TRUPANION INC (TRUP) Stock Fundamental Analysis
NASDAQ:TRUP - Nasdaq - US8982021060 - Common Stock - Currency: USD
TRUP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. The financial health of TRUP is average, but there are quite some concerns on its profitability. TRUP is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
TRUP had positive earnings in the past year.
TRUP had a positive operating cash flow in the past year.
TRUP had negative earnings in each of the past 5 years.
Of the past 5 years TRUP 4 years had a positive operating cash flow.
1.2 Ratios
TRUP has a worse Return On Assets (-0.51%) than 85.31% of its industry peers.
The Return On Equity of TRUP (-1.28%) is worse than 83.92% of its industry peers.
The Return On Invested Capital of TRUP (0.14%) is worse than 67.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.51% | ||
| ROE | -1.28% | ||
| ROIC | 0.14% |
ROA(3y)-4.52%
ROA(5y)-4.21%
ROE(3y)-10.78%
ROE(5y)-8.95%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 0.06%, TRUP is not doing good in the industry: 83.22% of the companies in the same industry are doing better.
The Gross Margin of TRUP (14.66%) is better than 86.71% of its industry peers.
In the last couple of years the Gross Margin of TRUP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.06% | ||
| PM (TTM) | N/A | ||
| GM | 14.66% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.32%
GM growth 5Y-3.83%
2. Health
2.1 Basic Checks
TRUP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TRUP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRUP has more shares outstanding
Compared to 1 year ago, TRUP has an improved debt to assets ratio.
2.2 Solvency
TRUP has an Altman-Z score of 3.81. This indicates that TRUP is financially healthy and has little risk of bankruptcy at the moment.
TRUP has a Altman-Z score of 3.81. This is amongst the best in the industry. TRUP outperforms 97.90% of its industry peers.
The Debt to FCF ratio of TRUP is 2.42, which is a good value as it means it would take TRUP, 2.42 years of fcf income to pay off all of its debts.
TRUP has a Debt to FCF ratio (2.42) which is in line with its industry peers.
A Debt/Equity ratio of 0.38 indicates that TRUP is not too dependend on debt financing.
TRUP has a Debt to Equity ratio of 0.38. This is comparable to the rest of the industry: TRUP outperforms 40.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 3.81 |
ROIC/WACC0.02
WACC9.15%
2.3 Liquidity
A Current Ratio of 1.70 indicates that TRUP should not have too much problems paying its short term obligations.
TRUP has a Current ratio of 1.70. This is amongst the best in the industry. TRUP outperforms 88.81% of its industry peers.
TRUP has a Quick Ratio of 1.70. This is a normal value and indicates that TRUP is financially healthy and should not expect problems in meeting its short term obligations.
TRUP has a Quick ratio of 1.70. This is amongst the best in the industry. TRUP outperforms 88.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
TRUP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 103.13%, which is quite impressive.
Looking at the last year, TRUP shows a quite strong growth in Revenue. The Revenue has grown by 14.08% in the last year.
Measured over the past years, TRUP shows a very strong growth in Revenue. The Revenue has been growing by 27.35% on average per year.
EPS 1Y (TTM)103.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%81.25%
Revenue 1Y (TTM)14.08%
Revenue growth 3Y22.52%
Revenue growth 5Y27.35%
Sales Q2Q%11.71%
3.2 Future
Based on estimates for the next years, TRUP will show a very strong growth in Earnings Per Share. The EPS will grow by 51.59% on average per year.
TRUP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.01% yearly.
EPS Next Y143.28%
EPS Next 2Y126.32%
EPS Next 3Y51.59%
EPS Next 5YN/A
Revenue Next Year9.01%
Revenue Next 2Y7.15%
Revenue Next 3Y6.54%
Revenue Next 5Y11.01%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 2209.00, the valuation of TRUP can be described as expensive.
86.71% of the companies in the same industry are cheaper than TRUP, based on the Price/Earnings ratio.
TRUP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.03.
Based on the Price/Forward Earnings ratio of 128.65, the valuation of TRUP can be described as expensive.
Based on the Price/Forward Earnings ratio, TRUP is valued expensively inside the industry as 81.82% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 21.94. TRUP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2209 | ||
| Fwd PE | 128.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRUP is valued a bit more expensive than 72.03% of the companies in the same industry.
TRUP's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TRUP is more expensive than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.26 | ||
| EV/EBITDA | 88.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRUP does not grow enough to justify the current Price/Earnings ratio.
TRUP's earnings are expected to grow with 51.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)15.42
PEG (5Y)N/A
EPS Next 2Y126.32%
EPS Next 3Y51.59%
5. Dividend
5.1 Amount
No dividends for TRUP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.18
+0.06 (+0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.33%
Inst Owner Change2%
Ins Owners5.19%
Ins Owner Change1.19%
Market Cap1.88B
Analysts81.67
Price Target53.3 (20.64%)
Short Float %23.88%
Short Ratio13.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)75.15%
Min EPS beat(2)39.14%
Max EPS beat(2)111.15%
EPS beat(4)4
Avg EPS beat(4)80.9%
Min EPS beat(4)25.3%
Max EPS beat(4)148.02%
EPS beat(8)8
Avg EPS beat(8)63.27%
EPS beat(12)9
Avg EPS beat(12)30.5%
EPS beat(16)11
Avg EPS beat(16)21.83%
Revenue beat(2)0
Avg Revenue beat(2)-1.08%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)-0.23%
Revenue beat(8)3
Avg Revenue beat(8)0.02%
Revenue beat(12)3
Avg Revenue beat(12)-0.12%
Revenue beat(16)5
Avg Revenue beat(16)-0.15%
PT rev (1m)-4.57%
PT rev (3m)-8.33%
EPS NQ rev (1m)-160.14%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-15.15%
EPS NY rev (3m)-60.7%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2209 | ||
| Fwd PE | 128.65 | ||
| P/S | 1.42 | ||
| P/FCF | 35.26 | ||
| P/OCF | 30.37 | ||
| P/B | 5.63 | ||
| P/tB | 6.63 | ||
| EV/EBITDA | 88.19 |
EPS(TTM)0.02
EY0.05%
EPS(NY)0.34
Fwd EY0.78%
FCF(TTM)1.25
FCFY2.84%
OCF(TTM)1.45
OCFY3.29%
SpS31.1
BVpS7.85
TBVpS6.67
PEG (NY)15.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.51% | ||
| ROE | -1.28% | ||
| ROCE | 0.18% | ||
| ROIC | 0.14% | ||
| ROICexc | 0.45% | ||
| ROICexgc | 0.69% | ||
| OM | 0.06% | ||
| PM (TTM) | N/A | ||
| GM | 14.66% | ||
| FCFM | 4.03% |
ROA(3y)-4.52%
ROA(5y)-4.21%
ROE(3y)-10.78%
ROE(5y)-8.95%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.32%
GM growth 5Y-3.83%
F-Score7
Asset Turnover1.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 7.37 | ||
| Cap/Depr | 52.08% | ||
| Cap/Sales | 0.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 357.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 3.81 |
F-Score7
WACC9.15%
ROIC/WACC0.02
Cap/Depr(3y)120.68%
Cap/Depr(5y)114.14%
Cap/Sales(3y)1.43%
Cap/Sales(5y)1.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)103.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%81.25%
EPS Next Y143.28%
EPS Next 2Y126.32%
EPS Next 3Y51.59%
EPS Next 5YN/A
Revenue 1Y (TTM)14.08%
Revenue growth 3Y22.52%
Revenue growth 5Y27.35%
Sales Q2Q%11.71%
Revenue Next Year9.01%
Revenue Next 2Y7.15%
Revenue Next 3Y6.54%
Revenue Next 5Y11.01%
EBIT growth 1Y103.78%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year929.15%
EBIT Next 3Y133.09%
EBIT Next 5Y66.67%
FCF growth 1Y277.52%
FCF growth 3YN/A
FCF growth 5Y29.02%
OCF growth 1Y648.51%
OCF growth 3Y86.36%
OCF growth 5Y24.47%