Trupanion, Inc.
Find Ratings ReportsTRUPANION INC's gross profit margin for the third quarter of its fiscal year 2020 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. TRUPANION INC has strong liquidity. Currently, the Quick Ratio is 1.51 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 8.62% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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| Income Statement | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 130.12 | 99.28 |
| EBITDA ($mil) | -0.59 | 2.08 |
| EBIT ($mil) | -2.26 | 0.9 |
| Net Income ($mil) | -2.56 | 0.78 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 118.3 | 96.45 |
| Total Assets ($mil) | 317.14 | 242.99 |
| Total Debt ($mil) | 29.84 | 22.07 |
| Equity ($mil) | 144.3 | 132.85 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 15.82 | 17.57 |
| EBITDA Margin | -0.45 | 2.09 |
| Operating Margin | -1.74 | 0.91 |
| Sales Turnover | 1.47 | 1.49 |
| Return on Assets | -0.53 | -1.11 |
| Return on Equity | -1.18 | -2.05 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 1.56 | 1.77 |
| Debt/Capital | 0.17 | 0.14 |
| Interest Expense | 0.32 | 0.34 |
| Interest Coverage | -6.97 | 2.65 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 35.58 | 34.94 |
| Div / share | 0.0 | 0.0 |
| EPS | -0.07 | 0.02 |
| Book value / share | 4.06 | 3.8 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 478891.0 | 659033.0 |
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 30.00 indicates a significant premium versus the S&P 500 average of 4.02 and a significant premium versus the subsector average of 2.70. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, TRUPANION INC seems to be trading at a premium to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TRUP NM | Peers 21.56 | TRUP 195.08 | Peers 10.56 | |||||||||||||||||||||
|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. TRUP's P/E is negative making this valuation measure meaningless. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. TRUP is trading at a significant premium to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
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| TRUP NM | Peers 19.00 | TRUP NA | Peers 1.31 | |||||||||||||||||||||
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Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. TRUP's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
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| TRUP 30.00 | Peers 2.70 | TRUP 55.56 | Peers -7.12 | |||||||||||||||||||||
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Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. TRUP is trading at a significant premium to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. TRUP is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
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| TRUP 9.31 | Peers 1.88 | TRUP 28.72 | Peers 1.51 | |||||||||||||||||||||
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Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. TRUP is trading at a significant premium to its subsector. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. TRUP has a sales growth rate that significantly exceeds its peers. |
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