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Tiptree (Tiptree) ROE % : 6.76% (As of Dec. 2023)


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What is Tiptree ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tiptree's annualized net income for the quarter that ended in Dec. 2023 was $27 Mil. Tiptree's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $406 Mil. Therefore, Tiptree's annualized ROE % for the quarter that ended in Dec. 2023 was 6.76%.

The historical rank and industry rank for Tiptree's ROE % or its related term are showing as below:

TIPT' s ROE % Range Over the Past 10 Years
Min: -7.73   Med: 2.69   Max: 10.32
Current: 3.47

During the past 13 years, Tiptree's highest ROE % was 10.32%. The lowest was -7.73%. And the median was 2.69%.

TIPT's ROE % is ranked worse than
77.78% of 486 companies
in the Insurance industry
Industry Median: 9.66 vs TIPT: 3.47

Tiptree ROE % Historical Data

The historical data trend for Tiptree's ROE % 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.

* Premium members only.

Tiptree ROE % Chart

Tiptree Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.68 -7.73 10.32 -2.12 3.43

Tiptree Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.89 -1.06 5.97 2.16 6.76

Competitive Comparison of Tiptree's ROE %

For the Insurance - Specialty subindustry, Tiptree's ROE %, along with its competitors' market caps and ROE % 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.


Tiptree's ROE % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Tiptree's ROE % distribution charts can be found below:

* The bar in red indicates where Tiptree's ROE % falls into.



Tiptree ROE % Calculation

Tiptree's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=13.951/( (397.365+416.866)/ 2 )
=13.951/407.1155
=3.43 %

Tiptree's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=27.484/( (396.091+416.866)/ 2 )
=27.484/406.4785
=6.76 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Tiptree  (NAS:TIPT) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=27.484/406.4785
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(27.484 / 1785.496)*(1785.496 / 4983.352)*(4983.352 / 406.4785)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.54 %*0.3583*12.2598
=ROA %*Equity Multiplier
=0.55 %*12.2598
=6.76 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=27.484/406.4785
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (27.484 / 120.26) * (120.26 / 150.128) * (150.128 / 1785.496) * (1785.496 / 4983.352) * (4983.352 / 406.4785)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 0.2285 * 0.801 * 8.41 % * 0.3583 * 12.2598
=6.76 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Tiptree ROE % Related Terms

Thank you for viewing the detailed overview of Tiptree's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Tiptree (Tiptree) Business Description

Traded in Other Exchanges
N/A
Address
660 Steamboat Road, 2nd Floor, Greenwich, CT, USA, 06830
Tiptree Inc is a United States-based company that provides specialty insurance products and related services. It has two reportable segments: Insurance and Mortgage. It generates maximum revenue from the Insurance segment. The insurance segment provides specialty insurance, warranty products and related administration services; and the Mortgage segment originates, sell and service conventional, conforming agency and government-insured residential mortgage loans.
Executives
Neil Charles Rifkind officer: General Counsel and Secretary C/O TIPTREE INC., 660 STEAMBOAT ROAD, 2ND FL, GREENWICH CT 06830
Jonathan Ilany director PO BOX 180, WINCHESTER CENTER CT 06094
Scott T. Mckinney officer: Chief Financial Officer 660 STEAMBOAT ROAD, 2ND FLOOR, GREENWICH CT 06830
Sandra Bell officer: Chief Financial Officer C/O TIPTREE INC., 660 STEAMBOAT ROAD, 2ND FL, GREENWICH CT 06830
Randy Maultsby officer: President C/O TIPTREE INC., 660 STEAMBOAT ROAD, 2ND FL, GREENWICH CT 06830
Arif Inayatullah 10 percent owner C/O TIPTREE INC., 660 STEAMBOAT ROAD, 2ND FL, GREENWICH CT 06830
Paul M Friedman director 11 DEERFIELD LANE, SCARSDALE NY 10583
Dominique Mielle director C/O ANWORTH MORTGAGE ASSET CORPORATION, 1299 OCEAN AVENUE, SECOND FLOOR, SANTA MONICA CA 90401
Michael Gene Barnes director, officer: Vice Chairman of the Board TRICADIA CAPITAL, 299 PARK AVENUE, 13TH FLOOR, NEW YORK NY 10171
Nomura Securities Co Ltd 10 percent owner 13-1, NIHONBASHI 1-CHOME, CHUO-KU, TOKYO M0 103-8011
Prosight Specialty Insurance Group, Inc. 10 percent owner 412 MT. KEMBLE AVENUE, SUITE 300C, MORRISTOWN NJ 07960
New York Marine & General Insurance Co 10 percent owner 412 MT. KEMBLE AVENUE, SUITE 300C, MORRISTOWN NJ 07960
Prosight Global, Inc. 10 percent owner 412 MT. KEMBLE AVENUE, SUITE 300C, MORRISTOWN NJ 07960
Gotham Insurance Co 10 percent owner 412 MT. KEMBLE AVENUE, SUITE 300C, MORRISTOWN NJ 07960
Southwest Marine & General Insurance Co 10 percent owner 412 MT. KEMBLE AVENUE, SUITE 300C, MORRISTOWN NJ 07960