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ROOTS CORP (ROOT.CA) Stock Fundamental Analysis

TSX:ROOT - Toronto Stock Exchange - CA7766521099 - Common Stock - Currency: CAD

3.31  -0.01 (-0.3%)

Fundamental Rating

4

ROOT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 16 industry peers in the Specialty Retail industry. There are concerns on the financial health of ROOT while its profitability can be described as average. ROOT has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year ROOT was profitable.
ROOT had a positive operating cash flow in the past year.
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.
ROOT.CA Yearly Net Income VS EBIT VS OCF VS FCFROOT.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M -20M 40M -40M -60M

1.2 Ratios

The Return On Assets of ROOT (-10.16%) is worse than 87.50% of its industry peers.
ROOT's Return On Equity of -20.96% is on the low side compared to the rest of the industry. ROOT is outperformed by 81.25% of its industry peers.
ROOT's Return On Invested Capital of 3.65% is in line compared to the rest of the industry. ROOT outperforms 43.75% of its industry peers.
ROOT had an Average Return On Invested Capital over the past 3 years of 3.51%. This is below the industry average of 8.38%.
The 3 year average ROIC (3.51%) for ROOT is below the current ROIC(3.65%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -10.16%
ROE -20.96%
ROIC 3.65%
ROA(3y)-2.65%
ROA(5y)0.24%
ROE(3y)-5.48%
ROE(5y)0.76%
ROIC(3y)3.51%
ROIC(5y)5.08%
ROOT.CA Yearly ROA, ROE, ROICROOT.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20 -30 -40

1.3 Margins

ROOT's Operating Margin of 5.26% is in line compared to the rest of the industry. ROOT outperforms 56.25% of its industry peers.
ROOT's Operating Margin has improved in the last couple of years.
ROOT has a Gross Margin of 59.76%. This is amongst the best in the industry. ROOT outperforms 93.75% of its industry peers.
In the last couple of years the Gross Margin of ROOT has grown nicely.
Industry RankSector Rank
OM 5.26%
PM (TTM) N/A
GM 59.76%
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%
ROOT.CA Yearly Profit, Operating, Gross MarginsROOT.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ROOT is destroying value.
The number of shares outstanding for ROOT has been increased compared to 1 year ago.
Compared to 5 years ago, ROOT has less shares outstanding
The debt/assets ratio for ROOT is higher compared to a year ago.
ROOT.CA Yearly Shares OutstandingROOT.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
ROOT.CA Yearly Total Debt VS Total AssetsROOT.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

2.2 Solvency

Based on the Altman-Z score of 1.36, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.36, ROOT is doing worse than 62.50% of the companies in the same industry.
ROOT has a debt to FCF ratio of 4.68. This is a neutral value as ROOT would need 4.68 years to pay back of all of its debts.
ROOT's Debt to FCF ratio of 4.68 is in line compared to the rest of the industry. ROOT outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that ROOT is somewhat dependend on debt financing.
ROOT has a Debt to Equity ratio of 0.58. This is comparable to the rest of the industry: ROOT outperforms 56.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 4.68
Altman-Z 1.36
ROIC/WACC0.53
WACC6.92%
ROOT.CA Yearly LT Debt VS Equity VS FCFROOT.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M 100M 150M 200M

2.3 Liquidity

A Current Ratio of 1.39 indicates that ROOT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.39, ROOT is in line with its industry, outperforming 56.25% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that ROOT may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, ROOT perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.39
Quick Ratio 0.78
ROOT.CA Yearly Current Assets VS Current LiabilitesROOT.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M

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5

3. Growth

3.1 Past

ROOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, 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.
Looking at the last year, ROOT shows a small growth in Revenue. The Revenue has grown by 0.11% in the last year.
ROOT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.44% yearly.
EPS 1Y (TTM)100%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%11.11%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%2.38%

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.
Based on estimates for the next years, ROOT will show a small growth in Revenue. The Revenue will grow by 3.53% on average per year.
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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ROOT.CA Yearly Revenue VS EstimatesROOT.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M
ROOT.CA Yearly EPS VS EstimatesROOT.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.69, which indicates a rather expensive current valuation of ROOT.
ROOT's Price/Earnings ratio is in line with the industry average.
ROOT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.32.
Based on the Price/Forward Earnings ratio of 11.19, the valuation of ROOT can be described as reasonable.
87.50% of the companies in the same industry are more expensive than ROOT, based on the Price/Forward Earnings ratio.
ROOT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 20.69
Fwd PE 11.19
ROOT.CA Price Earnings VS Forward Price EarningsROOT.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ROOT is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than 68.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.21
EV/EBITDA 5.06
ROOT.CA Per share dataROOT.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

ROOT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ROOT's earnings are expected to grow with 45.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.24
PEG (5Y)1.7
EPS Next 2Y45.04%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for ROOT!.
Industry RankSector Rank
Dividend Yield N/A

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ROOTS CORP

TSX:ROOT (6/17/2025, 7:00:00 PM)

3.31

-0.01 (-0.3%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-09 2025-04-09/bmo
Earnings (Next)N/A N/A
Inst Owners0.01%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap133.62M
Analysts82.86
Price Target3.57 (7.85%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)2
Avg EPS beat(2)18.9%
Min EPS beat(2)0.55%
Max EPS beat(2)37.25%
EPS beat(4)4
Avg EPS beat(4)16.85%
Min EPS beat(4)0.55%
Max EPS beat(4)37.25%
EPS beat(8)5
Avg EPS beat(8)1.53%
EPS beat(12)7
Avg EPS beat(12)-6.17%
EPS beat(16)11
Avg EPS beat(16)7.3%
Revenue beat(2)1
Avg Revenue beat(2)-4.3%
Min Revenue beat(2)-10.02%
Max Revenue beat(2)1.42%
Revenue beat(4)2
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-10.02%
Max Revenue beat(4)3.79%
Revenue beat(8)3
Avg Revenue beat(8)-2.21%
Revenue beat(12)6
Avg Revenue beat(12)-1.34%
Revenue beat(16)8
Avg Revenue beat(16)-0.68%
PT rev (1m)7.69%
PT rev (3m)7.69%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
Industry RankSector Rank
PE 20.69
Fwd PE 11.19
P/S 0.51
P/FCF 5.21
P/OCF 4.13
P/B 0.84
P/tB 6.67
EV/EBITDA 5.06
EPS(TTM)0.16
EY4.83%
EPS(NY)0.3
Fwd EY8.94%
FCF(TTM)0.63
FCFY19.18%
OCF(TTM)0.8
OCFY24.2%
SpS6.51
BVpS3.95
TBVpS0.5
PEG (NY)0.24
PEG (5Y)1.7
Profitability
Industry RankSector Rank
ROA -10.16%
ROE -20.96%
ROCE 5.27%
ROIC 3.65%
ROICexc 4.2%
ROICexgc 10.78%
OM 5.26%
PM (TTM) N/A
GM 59.76%
FCFM 9.75%
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 Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 4.68
Debt/EBITDA 2.11
Cap/Depr 22.6%
Cap/Sales 2.55%
Interest Coverage 4.28
Cash Conversion 74.33%
Profit Quality N/A
Current Ratio 1.39
Quick Ratio 0.78
Altman-Z 1.36
F-Score5
WACC6.92%
ROIC/WACC0.53
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)100%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%11.11%
EPS Next Y84.87%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.11%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%2.38%
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.82%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year91.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.31%
FCF growth 3Y-21.04%
FCF growth 5Y7.66%
OCF growth 1Y-16.44%
OCF growth 3Y-16.96%
OCF growth 5Y-4.19%