Fundamentals snapshot
TRUP · NGM · Financial Services · Insurance - Property & Casualty
Current price
$25.00
52-week range
$21.16 - $46.98
Market cap
$1.09B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net cash $291.58M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Trupanion sells medical insurance for cats and dogs, which helps pet owners cover unexpected vet bills. Most of its money comes from the monthly subscription fees that pet owners pay, creating what's known as recurring revenue (income that is predictable and comes in at regular intervals). This is valuable because it provides a steady stream of cash, unlike a business that has to find new buyers for every single sale.
Trupanion was started in Canada in 1998 by Darryl Rawlings, who was inspired by a difficult family experience where they couldn't afford a necessary surgery for their dog. The company, originally called Vetinsurance, insured its first pet in 2000 with the goal of helping pet owners manage the high costs of veterinary care. A key moment was the development of its own software that allows for direct payment to veterinarians, which simplifies the claims process for pet owners. The company went public on the NASDAQ stock exchange in 2014, raising money to fuel its growth across North America and into other parts of the world.
Trupanion sells medical insurance for cats and dogs. Pet owners pay a regular monthly fee, called a premium, and in return, Trupanion covers a large portion of the veterinary bills if the pet gets sick or injured. A unique feature is their system that can pay the vet directly at checkout, often in minutes, so the pet owner only has to pay their portion of the bill instead of the full amount upfront. The insurance is designed to cover unexpected and significant costs like surgeries, diagnostic tests, and medications for illnesses and accidents.
This is Trupanion's main business and makes up the majority of its revenue, about two-thirds of the total. Individual pet owners are the customers, and they pay a monthly subscription fee directly to the company for a comprehensive insurance plan for their cat or dog. This plan is designed to cover new and unexpected accidents and illnesses, including hereditary (genetic) and chronic (long-lasting) conditions. The goal is to keep a pet enrolled for its entire life, creating a steady and predictable source of income for the company.
This smaller segment, which accounts for about a third of the company's revenue, involves business-to-business (B2B) relationships rather than selling directly to individual pet owners. Here, Trupanion provides its insurance products and services to other companies, such as employers who offer pet insurance as a benefit to their employees or to other marketing companies. This segment also includes revenue from software solutions and services it provides to partners. The customers are other businesses, and the contracts often cover multiple pets at once.
The company's main strategy is to build strong relationships with veterinarians, encouraging them to recommend Trupanion to pet owners. They are heavily focused on their patented software, Trupanion Express, which is installed in thousands of veterinary hospitals and allows for direct, fast payments, making their insurance more convenient. Management is also focused on growing its subscription business by enrolling pets when they are young and keeping them as members for life. Additionally, the company sees significant opportunity for growth by expanding into new international markets in Europe and other regions.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net cash $291.6M - more cash than debt. Interest coverage 7.3x.
Trupanion, Inc.'s profit covers its interest bill about 7.3 times over. which is stronger than most peers shown here.
Total debt $106.91M Interest coverage 7.32x This is the baseline the peer rows are being compared against.
Total debt $1.16B Interest coverage 55.28x +656% vs TRUP Carries about 7.6x more debt cushion than TRUP.
Total debt $493.66M Interest coverage 5.36x -27% vs TRUP Carries about 1.4x less debt cushion than TRUP.
Total debt $128.60M Interest coverage 25.00x +242% vs TRUP Carries about 3.4x more debt cushion than TRUP.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know