ROOTS CORP (ROOT.CA) Stock Fundamental Analysis
TSX:ROOT - CA7766521099 - Common Stock
3.15 CAD
+0.03 (+0.96%)
We assign a fundamental rating of 4 out of 10 to ROOT. ROOT was compared to 17 industry peers in the Specialty Retail industry. While ROOT is still in line with the averages on profitability rating, there are concerns on its financial health. ROOT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ROOT was profitable.
In the past year ROOT had a positive cash flow from operations.
ROOT had positive earnings in 4 of the past 5 years.
ROOT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ROOT has a Return On Assets of -10.95%. This is amonst the worse of the industry: ROOT underperforms 88.24% of its industry peers.
ROOT's Return On Equity of -22.03% is on the low side compared to the rest of the industry. ROOT is outperformed by 82.35% of its industry peers.
ROOT's Return On Invested Capital of 4.24% is in line compared to the rest of the industry. ROOT outperforms 47.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ROOT is below the industry average of 8.41%.
The last Return On Invested Capital (4.24%) for ROOT is above the 3 year average (3.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.95% | ||
| ROE | -22.03% | ||
| ROIC | 4.24% |
ROA(3y)-2.65%
ROA(5y)0.24%
ROE(3y)-5.48%
ROE(5y)0.76%
ROIC(3y)3.51%
ROIC(5y)5.08%
1.3 Margins
ROOT has a Operating Margin (5.65%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ROOT has grown nicely.
Looking at the Gross Margin, with a value of 60.13%, ROOT belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
ROOT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.65% | ||
| PM (TTM) | N/A | ||
| GM | 60.13% |
OM growth 3Y-29.72%
OM growth 5Y5.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.15%
GM growth 5Y2.18%
2. Health
2.1 Basic Checks
ROOT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ROOT has more shares outstanding
ROOT has less shares outstanding than it did 5 years ago.
ROOT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.41, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ROOT (1.41) is worse than 64.71% of its industry peers.
ROOT has a debt to FCF ratio of 5.48. This is a neutral value as ROOT would need 5.48 years to pay back of all of its debts.
The Debt to FCF ratio of ROOT (5.48) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.59 indicates that ROOT is somewhat dependend on debt financing.
ROOT's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. ROOT outperforms 52.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 1.41 |
ROIC/WACC0.6
WACC7.1%
2.3 Liquidity
A Current Ratio of 1.20 indicates that ROOT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.20, ROOT is in line with its industry, outperforming 52.94% of the companies in the same industry.
ROOT has a Quick Ratio of 1.20. This is a bad value and indicates that ROOT is not financially healthy enough and could expect problems in meeting its short term obligations.
ROOT has a Quick ratio of 0.41. This is amonst the worse of the industry: ROOT underperforms 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
ROOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 220.00%, which is quite impressive.
ROOT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.20% yearly.
The Revenue has been growing slightly by 2.65% in the past year.
Measured over the past years, ROOT shows a decrease in Revenue. The Revenue has been decreasing by -4.44% on average per year.
EPS 1Y (TTM)220%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%0%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.72%
3.2 Future
Based on estimates for the next years, ROOT will show a very strong growth in Earnings Per Share. The EPS will grow by 45.04% on average per year.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y84.87%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.69, the valuation of ROOT can be described as rather expensive.
Based on the Price/Earnings ratio, ROOT is valued cheaper than 82.35% of the companies in the same industry.
ROOT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.14.
ROOT is valuated reasonably with a Price/Forward Earnings ratio of 9.36.
Based on the Price/Forward Earnings ratio, ROOT is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ROOT to the average of the S&P500 Index (22.80), we can say ROOT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 9.36 |
4.2 Price Multiples
82.35% of the companies in the same industry are more expensive than ROOT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 76.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ROOT's earnings are expected to grow with 45.04% in the coming years.
PEG (NY)0.23
PEG (5Y)1.61
EPS Next 2Y45.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ROOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ROOT (8/27/2025, 7:00:00 PM)
3.15
+0.03 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners0.01%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap125.56M
Analysts82.86
Price Target3.83 (21.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.32%
Min EPS beat(2)-3.2%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)14.39%
Min EPS beat(4)-3.2%
Max EPS beat(4)37.25%
EPS beat(8)5
Avg EPS beat(8)1.65%
EPS beat(12)6
Avg EPS beat(12)-7.86%
EPS beat(16)10
Avg EPS beat(16)4.68%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)1.42%
Max Revenue beat(2)1.56%
Revenue beat(4)3
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-10.02%
Max Revenue beat(4)3.79%
Revenue beat(8)4
Avg Revenue beat(8)-1.96%
Revenue beat(12)6
Avg Revenue beat(12)-1.77%
Revenue beat(16)8
Avg Revenue beat(16)-1.22%
PT rev (1m)0%
PT rev (3m)15.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.69 | ||
| Fwd PE | 9.36 | ||
| P/S | 0.47 | ||
| P/FCF | 6.2 | ||
| P/OCF | 4.62 | ||
| P/B | 0.85 | ||
| P/tB | 14.9 | ||
| EV/EBITDA | 5.21 |
EPS(TTM)0.16
EY5.08%
EPS(NY)0.34
Fwd EY10.69%
FCF(TTM)0.51
FCFY16.14%
OCF(TTM)0.68
OCFY21.62%
SpS6.66
BVpS3.7
TBVpS0.21
PEG (NY)0.23
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.95% | ||
| ROE | -22.03% | ||
| ROCE | 6.12% | ||
| ROIC | 4.24% | ||
| ROICexc | 4.35% | ||
| ROICexgc | 10.37% | ||
| OM | 5.65% | ||
| PM (TTM) | N/A | ||
| GM | 60.13% | ||
| FCFM | 7.63% |
ROA(3y)-2.65%
ROA(5y)0.24%
ROE(3y)-5.48%
ROE(5y)0.76%
ROIC(3y)3.51%
ROIC(5y)5.08%
ROICexc(3y)3.94%
ROICexc(5y)5.58%
ROICexgc(3y)11.48%
ROICexgc(5y)16.3%
ROCE(3y)5.07%
ROCE(5y)7.33%
ROICexcg growth 3Y-29.15%
ROICexcg growth 5Y16.08%
ROICexc growth 3Y-24.81%
ROICexc growth 5Y11.75%
OM growth 3Y-29.72%
OM growth 5Y5.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.15%
GM growth 5Y2.18%
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.48 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 23.53% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 4.83 | ||
| Cash Conversion | 61.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 1.41 |
F-Score5
WACC7.1%
ROIC/WACC0.6
Cap/Depr(3y)20.18%
Cap/Depr(5y)17.1%
Cap/Sales(3y)2.24%
Cap/Sales(5y)1.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)220%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%0%
EPS Next Y84.87%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.65%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.72%
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y37.92%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year91.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y0.54%
FCF growth 3Y-21.04%
FCF growth 5Y7.66%
OCF growth 1Y2.26%
OCF growth 3Y-16.96%
OCF growth 5Y-4.19%