Trupanion Inc. Common Stock (TRUP)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought at sensible prices. Trupanion sells medical insurance for cats and dogs on a subscription basis, a niche with recurring payments and some stickiness because pet owners are reluctant to switch coverage once a pet is ill. Filed figures show revenue rising from $1.3B in FY2024 to $1.4B in FY2025, and diluted EPS moving from a loss of $0.23 to $0.45. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $392.9M and diluted EPS was $0.16; that compares with revenue of $353.6M and EPS of $0.22 in fiscal Q2 2025. Growth continues, but earnings are small and uneven. At the 2026-10-13 close of $26.57, FairStock calculates a P/E of 50.13, P/B of 2.84, ROE of 6.07%, ROCE of 1.78%, and D/E of 0.26. The balance sheet is not heavily levered, and a Piotroski F-Score of 8/9 suggests improving fundamentals. But returns on equity and capital are modest; this is not yet a high-quality compounder. The PEG of 0.12 is eye-catching, but it depends on a profit rebound from a low base. Insurance is ultimately about underwriting discipline, and the data lacks the combined ratio, CET1, and net interest margin needed to judge risk properly. FairStock score 44/100 and a Lynch category of none—only one year of filed results—tell me there is not enough consistent history. The price may be fair if margins keep expanding, but I see no margin of safety.

In plain English: Trupanion sells medical insurance for cats and dogs, mostly through subscriptions. The business is growing sales and recently started making a small profit, but profits are uneven and the stock price looks expensive compared with those profits. The shares have fallen from their high and may be fairly priced rather than clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer