Trupanion, Inc.
Trupanion, Inc. Fundamental Analysis
Trupanion, Inc. (TRUP) shows weak financial fundamentals with a PE ratio of 59.61, profit margin of 1.35%, and ROE of 5.39%. The company generates $1.5B in annual revenue with strong year-over-year growth of 15.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TRUP's fundamental strength across five key dimensions:
Efficiency Score
WeakTRUP struggles to generate sufficient returns from assets.
Valuation Score
WeakTRUP trades at a premium to fair value.
Growth Score
ExcellentTRUP delivers strong and consistent growth momentum.
Financial Health Score
ExcellentTRUP maintains a strong and stable balance sheet.
Profitability Score
WeakTRUP struggles to sustain strong margins.
Key Financial Metrics
Is TRUP Expensive or Cheap?
P/E Ratio
TRUP trades at 59.61 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TRUP's PEG of 2.09 indicates potential overvaluation.
Price to Book
The market values Trupanion, Inc. at 3.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.57 times EBITDA. This signals the market has high growth expectations.
How Well Does TRUP Make Money?
Net Profit Margin
For every $100 in sales, Trupanion, Inc. keeps $1.35 as profit after all expenses.
Operating Margin
Core operations generate 0.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.39 in profit for every $100 of shareholder equity.
ROA
Trupanion, Inc. generates $2.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Trupanion, Inc. generates limited operating cash flow of $91.92M, signaling weaker underlying cash strength.
Free Cash Flow
Trupanion, Inc. produces free cash flow of $77.41M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.78 in free cash annually.
FCF Yield
TRUP converts 6.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
59.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How TRUP Stacks Against Its Sector Peers
| Metric | TRUP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 59.61 | 18.91 | Worse (Expensive) |
| ROE | 5.39% | 788.00% | Weak |
| Net Margin | 1.35% | 2164.00% | Weak |
| Debt/Equity | 0.29 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 1.07 | 616.06 | Neutral |
| ROA | 2.12% | -23806.00% (disorted) | Weak |
TRUP outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Trupanion, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
175.19%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-337.60%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
145.60%
Industry Style: Value, Dividend, Cyclical
High Growth