Tiptree Financial, Inc. :TIPT-US: Earnings Analysis: Q3, 2016 By the Numbers : November 28, 2016

Tiptree Financial, Inc. reports financial results for the quarter ended September 30, 2016.

We analyze the earnings along side the following peers of Tiptree Financial, Inc. – Welltower, Inc., Universal Health Realty Income Trust, Ventas, Inc., Ashford Hospitality Trust, Inc., HCP, Inc., Sabra Health Care REIT, Inc., CIM Commercial Trust Corporation, Healthcare Trust of America, Inc. Class A and Duke Realty Corporation (HCN-US, UHT-US, VTR-US, AHT-US, HCP-US, SBRA-US, CMCT-US, HTA-US and DRE-US) that have also reported for this period.


  • Summary numbers: Revenues of USD 146.51 million, Net Earnings of USD 5.85 million.
  • Gross margins widened from 41.12% to 50.25% compared to the same period last year, operating (EBITDA) margins now 12.28% from 4.78%.
  • Year-on-year change in operating cash flow of -113.28% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings growth from operating margin improvements as well as one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2016-09-30 2016-06-30 2016-03-31 2015-12-31 2015-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 146.51 148.14 139.8 122.15 135.39
Revenue Growth (%YOY) 8.21 24.17 34.92 101.67 185.28
Earnings (mil) 5.85 6.08 5.52 -0.24 -4.55
Earnings Growth (%YOY) 228.38 692.4 310.32 -188.24 -525.12
Net Margin (%) 3.99 4.1 3.95 -0.2 -3.36
EPS 0.19 0.17 0.16 -0.08 -0.13
Return on Equity (%) 6.14 6.15 5.47 -0.24 -4.49
Return on Assets (%) 0.84 0.92 0.86 -0.03 -0.53

Access our Ratings and Scores for Tiptree Financial, Inc.

Market Share Versus Profits

Revenues History
Earnings History

TIPT-US‘s change in revenue this period compared to the same period last year of 8.21% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that TIPT-US is holding onto its market share. Also, for comparison purposes, revenues changed by -1.10% and earnings by -3.83% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s earnings growth was influenced by year-on-year improvement in gross margins from 41.12% to 50.25% as well as better cost controls. As a result, operating margins (EBITDA margins) rose from 4.78% to 12.28% compared to the same period last year. For comparison, gross margins were 44.29% and EBITDA margins were 12.24% in the last reporting period.

Gross Margin Versus EBITDA Margin

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost

Cash Versus Earnings – Sustainable Performance?

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings

TIPT-US‘s change in operating cash flow of -113.28% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.


The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -2.63% to 7.88% and (2) one-time items. The company’s pretax margins are now 7.88% compared to -2.63% for the same period last year.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Tiptree Financial, Inc.

Company Profile

Tiptree Financial, Inc. is a holding company, which engages in the acquisition and management of controlling interests of operating businesses. It operates through the following segments: Insurance and Insurance Services, Specialty Finance, Real Estate, Asset Management, and Corporate and Other. The Insurance and Insurance Services segment consists of Fortegra, which offers consumer related protection products, including credit insurance, non-standard auto insurance, warranties, service contracts, auto warranty, and roadside assistance. The Specialty Finance segment consists of a controlling ownership interest in Siena, which provides asset-based loans to smaller businesses. The Real Estate Segment consists of Care, which acquires and owns seniors housing properties. The Asset Management segment consists of income from the collateralized loan obligations (CLOs) under management and from its management of Non-Profit Preferred Funding Trust 1, a portfolio of tax exempt securities owned by third party investors. The Corporate and Other segment incorporates revenues from the investments in CLOs and tax exempt securities, income from credit investment portfolio, and net gains or losses from the corporate finance activity. The company was founded by Flint D. Besecker on March 19, 2007 and is headquartered in New York, NY.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of TIPT-US.