Tiptree Inc. (TIPT) | Investment Case

1. Company Snapshot

1.a. Company Description

Tiptree Inc., through its subsidiaries, underwrites and administers specialty insurance products primarily in the United States.The company operates in two segments, Insurance and Mortgage.It offers niche commercial and personal lines insurance, credit insurance and collateral protection products, and warranty and service contract products and solutions, as well as premium finance services.

The company also offers mortgage loans for institutional investors; and maritime shipping services, as well as invests in shares.It markets its products through a network of independent insurance agents, consumer finance companies, auto dealers, retailers, brokers, and managing general agencies.The company was formerly known as Tiptree Financial Inc.

and changed its name to Tiptree Inc.in December 2016.Tiptree Inc.

was incorporated in 2007 and is based in New York, New York.

Show Full description

1.b. Last Insights on TIPT

Tiptree Inc.'s recent performance was driven by Fortegra's impressive profitability growth of over 35% year-over-year, exceeding Q4 earnings expectations with net income of $0.47/share. The company's robust metrics and favorable interest rate environment suggest potential net income of $200 million for 2025. Tiptree's diverse portfolio and strong management mitigate geographic risks, ensuring stable premium environments and profitability. The company's ability to deliver strong results despite past concerns about geographic risks is a testament to its resilience and adaptability.

1.c. Company Highlights

Last Price	18.36
Change Percentage	0.82%
Open	18.28
Previous Close	18.21
Market Cap ( Millions)	686
Volume	611418
Year High	27.41
Year Low	17.07
M A 50	18.19
M A 200	21.31

FCF Yield	27.26%
Dividend Yield	2.67%
ROE	12.34%
Debt / Equity	0.00%
Net Debt / EBIDTA	-166.98%
Price To Book	1.37
Price Earnings Ratio	11.54
Price To FCF	3.67
Price To sales	0.33
EV / EBITDA	1.46

2. Transcript Summary

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3. NewsRoom

Tiptree Announces Shareholder Approval of Proposed Merger of Fortegra and DB Insurance

Dec -03

Source: businesswire.com

Institutional Shareholder Services (ISS) Recommend Tiptree Stockholders Vote “FOR” the Merger of Fortegra and DB Insurance

Nov -24

Source: businesswire.com

Tiptree Financial Inc. $TIPT Shares Purchased by Connor Clark & Lunn Investment Management Ltd.

Nov -17

Source: defenseworld.net

Veradace Partners Issues Letter to Tiptree Shareholders Regarding the Proposed Sale of Fortegra to DB Insurance

Nov -10

Source: businesswire.com

Teacher Retirement System of Texas Grows Holdings in Tiptree Financial Inc. $TIPT

Nov -06

Source: defenseworld.net

Critical Comparison: Tiptree Financial (NASDAQ:TIPT) versus Detwiler Fenton Group (OTCMKTS:DMCD)

Nov -03

Source: defenseworld.net

Tiptree Announces Third Quarter 2025 Results and Sale of Reliance First Capital

Oct -31

Source: businesswire.com

Fortegra Establishes Presence in Lloyd's Underwriting Room

Oct -07

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.24%)

6. Segments

Insurance

Expected Growth: 7.3%

Growing demand for niche insurance products, increasing adoption in underserved industries, and expansion into new markets drive Tiptree's growth.

Mortgage

Expected Growth: 5.5%

Growing demand for mortgage loans, increasing property prices, and low interest rates drive growth. Tiptree Inc.'s diversified mortgage offerings and strong distribution network further support expansion.

Other

Expected Growth: 4.5%

Tiptree's non-core businesses, including corporate investments and miscellaneous operations, are expected to grow steadily driven by strategic investments, diversification, and opportunistic acquisitions, leveraging the company's financial expertise and network.

7. Detailed Products

Jam and Preserves

Homemade-style fruit preserves made with high-quality ingredients and no artificial flavorings or preservatives

Marmalades

Traditional and citrus-based marmalades made with Seville oranges and other citrus fruits

Chutneys and Relishes

Spicy and tangy condiments made with a variety of fruits, vegetables, and spices

Honey and Spreads

Pure and flavored honeys, as well as sweet and savory spreads

Gifts and Hampers

Pre-curated gift baskets and hampers filled with Tiptree products

Catering and Foodservice

Bulk quantities of Tiptree products for use in commercial kitchens and catering operations

8. Tiptree Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tiptree Inc. is medium due to the presence of alternative products in the market, but the company's strong brand loyalty and quality products mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Tiptree Inc. due to the company's strong brand reputation and customer loyalty, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Tiptree Inc. due to the presence of multiple suppliers, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is high for Tiptree Inc. due to the relatively low barriers to entry in the industry, but the company's strong brand reputation and established distribution networks make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry is high for Tiptree Inc. due to the presence of several established competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	60.25%
Debt Cost	10.03%
Equity Weight	39.75%
Equity Cost	10.03%
WACC	10.03%
Leverage	151.54%

11. Quality Control: Tiptree Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Investors Title

A-Score: 6.9/10

Value: 5.0

Growth: 4.7

Quality: 7.9

Yield: 10.0

Momentum: 7.0

Volatility: 6.7

1-Year Total Return ->

Employers Holdings

A-Score: 6.0/10

Value: 6.9

Growth: 4.9

Quality: 6.2

Yield: 7.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

Tiptree

A-Score: 5.9/10

Value: 8.1

Growth: 7.7

Quality: 6.9

Yield: 4.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

AMERISAFE

A-Score: 5.6/10

Value: 3.5

Growth: 2.2

Quality: 7.0

Yield: 10.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

MBIA

A-Score: 5.3/10

Value: 8.6

Growth: 1.3

Quality: 5.2

Yield: 5.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

ICC Holdings

A-Score: 4.8/10

Value: 4.9

Growth: 7.3

Quality: 5.1

Yield: 0.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-10.85%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

10.03%

Tiptree Inc. - US88822Q1031

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TIPT

1.c. Company Highlights

Average Growth

Medium Volatility

Fairly Valued

Average Yield

Average Quality

Higher Growth

Stable Momentum

Strong Momentum

Cheaper

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.24%)

6. Segments

Insurance

Expected Growth: 7.3%

Mortgage

Expected Growth: 5.5%

Other

Expected Growth: 4.5%

7. Detailed Products

Jam and Preserves

Marmalades

Chutneys and Relishes

Honey and Spreads

Gifts and Hampers

Catering and Foodservice

8. Tiptree Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Tiptree Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.36$

Current Price

18.36$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA