TrupanionTRUP +5.54%68 Gross Margin % is 16.01% as of Mar. 2026, which is 1% below its 10-year median of 16.18. GuruFocus rates TRUP with a GF Score™ of 68/100 and a GF Value™ of $40.11 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 59 Insurance companies, Trupanion ranks worse than 79.66% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Trupanion's Gross Profit for the
three
months ended in Mar. 2026 was $61 Mil. Trupanion's Revenue for the
three
months ended in Mar. 2026 was $384 Mil. Therefore, Trupanion's Gross Margin % for the quarter that ended in Mar. 2026 was 16.01%.
Warning Sign:
Trupanion Inc gross margin has been in long-term decline. The average rate of decline per year is -1.2%.
The historical rank and industry rank for Trupanion's Gross Margin % or its related term are showing as below:
TRUP'
s Gross Margin % Range Over the Past 10 Years
Min: 11.82 Med: 16.18 Max: 17.74
Current: 16.3
During the past 13 years, the highestGross Margin % of Trupanion was 17.74%. The lowest was 11.82%. And the median was 16.18%.
TRUP's Gross Margin % is ranked worse than 79.66% of 59
companies
in the Insurance industry
Industry Median: 42.38
vs TRUP: 16.30
Trupanion had a gross margin of 16.01% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Trupanion was -1.20% per year.
Trupanion (NAS:TRUP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Trupanion had a gross margin of 16.01% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Trupanion Gross Margin % Related Terms
Trupanion Gross Margin % Historical Data
* Premium members only.
The historical data trend for Trupanion's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TRUP vs ASIC, BOW, SAFT: Gross Margin % Comparison
For the Insurance - Property & Casualty subindustry, Trupanion's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Trupanion Gross Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Trupanion's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Trupanion's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Trupanion (TRUP) has a Gross Margin % of 16.01% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Trupanion and its competitors. This is near median its historical median of 16.18. Over the past decade, Trupanion's Gross Margin % has ranged from 11.82 to 17.74. According to the industry distribution chart, Trupanion ranks #47 out of 59 companies in the Insurance industry, placing it in the top 79.7%.
Is Trupanion's Gross Margin % too high?
Trupanion's current Gross Margin % of 16.01% is near median its 10-year median of 16.18. Over the past 10 years, this metric has ranged from a low of 11.82 to a high of 17.74. The Insurance industry median Gross Margin % is 42.38. Trupanion's value of 16.01% is 62.2% below this industry median. Based on the distribution chart, Trupanion ranks #47 out of 59 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Trupanion has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Trupanion's Gross Margin % compare to ASIC and BOW?
According to the Insurance industry distribution chart, Trupanion ranks #47 out of 59 companies for Gross Margin %. This places Trupanion in the lower half of its industry. The industry median Gross Margin % is 42.38. Trupanion's value of 16.01% is 62.2% below this benchmark. Historically, Trupanion's own Gross Margin % has ranged from 11.82 to 17.74 over the past decade. While the company's 10-year median is 16.18 vs. the industry median of 42.38, Trupanion has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Insurance company?
The median Gross Margin % among Insurance companies is 42.38, based on 59 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trupanion's current Gross Margin % of 16.01% is 62.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Trupanion and its competitors. For the Insurance industry, the median Gross Margin % is 42.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trupanion's current Gross Margin % is 16.01%, which is near median its own 10-year median of 16.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trupanion stock overvalued right now?
Based on GuruFocus' analysis, Trupanion (TRUP) is currently considered Significantly Undervalued. The stock's GF Value™ is $40.11, compared to a current price of $25.35 — trading 36.8% below its estimated fair value. The current Gross Margin % is 16.01%, which is near median its 10-year median of 16.18 and 62.2% below the Insurance industry median of 42.38. Trupanion's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Trupanion (TRUP), the current Gross Margin % is 16.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Trupanion (TRUP) Overvalued in 2026?
Based on GuruFocus' analysis, Trupanion stock appears to be undervalued.
The current stock price of $25.35 is trading 36.8% below its estimated GF Value™ of $40.11.
GuruFocus considers Trupanion to be Significantly Undervalued.
Key valuation signals for TRUP:
Gross Margin %: 16.01% (near median its 10-year median of 16.18)
GF Value™: $40.11 vs. price of $25.35 (36.8% below fair value)
Industry Position: 62.2% below the Insurance median (#47 of 59)
No single metric tells the full story. See the TRUP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trupanion Inc is a specialty insurance products provider in the United States. Its core business is the sale of insurance products tailor-made for pets, especially cats and dogs. It operates in two business segments: The subscription business segment generates revenue majorly from subscription fees related to the company's direct-to-consumer products and Other business segment is comprised of revenue from other product offerings that generally have a business-to-business relationship and a different margin profile than subscription business segment, including revenue from writing policies on behalf of third parties and revenue from other products and software solutions. Geographically, the company operates in United States, which derives maximum revenue; and Canada and Others.
68GF Score
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