ROOTS CORP (ROOT.CA) Stock Fundamental Analysis
Canada - TSX:ROOT - CA7766521099 - Common Stock
3.27 CAD
+0.03 (+0.93%)
ROOT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 16 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
ROOT had positive earnings in the past year.
In the past year ROOT had a positive cash flow from operations.
ROOT had positive earnings in 4 of the past 5 years.
In the past 5 years ROOT always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -10.56%, ROOT is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
ROOT has a worse Return On Equity (-22.33%) than 81.25% of its industry peers.
ROOT's Return On Invested Capital of 4.61% 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 significantly below the industry average of 9.22%.
The 3 year average ROIC (3.51%) for ROOT is below the current ROIC(4.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.56% | ||
| ROE | -22.33% | ||
| ROIC | 4.61% |
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
The Operating Margin of ROOT (5.97%) is comparable to the rest of the industry.
ROOT's Operating Margin has improved in the last couple of years.
ROOT has a Gross Margin of 60.91%. This is amongst the best in the industry. ROOT outperforms 93.75% of its industry peers.
ROOT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.97% | ||
| PM (TTM) | N/A | ||
| GM | 60.91% |
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.
ROOT has more shares outstanding than it did 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.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ROOT (1.39) is worse than 62.50% of its industry peers.
The Debt to FCF ratio of ROOT is 5.10, which is a neutral value as it means it would take ROOT, 5.10 years of fcf income to pay off all of its debts.
ROOT has a Debt to FCF ratio (5.10) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.62 indicates that ROOT is somewhat dependend on debt financing.
ROOT has a Debt to Equity ratio (0.62) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.64
WACC7.19%
2.3 Liquidity
A Current Ratio of 1.18 indicates that ROOT should not have too much problems paying its short term obligations.
ROOT's Current ratio of 1.18 is in line compared to the rest of the industry. ROOT outperforms 43.75% of its industry peers.
A Quick Ratio of 0.34 indicates that ROOT may have some problems paying its short term obligations.
ROOT's Quick ratio of 0.34 is on the low side compared to the rest of the industry. ROOT is outperformed by 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 100.00% over the past year.
The Earnings Per Share has been growing by 12.20% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.48% 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)100%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%15.6%
Revenue 1Y (TTM)4.48%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.33%
3.2 Future
ROOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.04% yearly.
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 Y46.62%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.44 indicates a rather expensive valuation of ROOT.
ROOT's Price/Earnings ratio is a bit cheaper when compared to the industry. ROOT is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of ROOT to the average of the S&P500 Index (27.57), we can say ROOT is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 9.71, the valuation of ROOT can be described as reasonable.
Based on the Price/Forward Earnings ratio, ROOT is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ROOT to the average of the S&P500 Index (23.09), we can say ROOT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.44 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROOT indicates a rather cheap valuation: ROOT is cheaper than 87.50% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.93 | ||
| EV/EBITDA | 5.32 |
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.
A more expensive valuation may be justified as ROOT's earnings are expected to grow with 45.04% in the coming years.
PEG (NY)0.44
PEG (5Y)1.68
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 (10/22/2025, 7:00:00 PM)
3.27
+0.03 (+0.93%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners0.05%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap129.79M
Revenue(TTM)268.46M
Net Income(TTM)-31617000
Analysts82.86
Price Target4.08 (24.77%)
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-20.69%
EPS NY rev (3m)-20.69%
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 | 20.44 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.48 | ||
| P/FCF | 5.93 | ||
| P/OCF | 4.56 | ||
| P/B | 0.92 | ||
| P/tB | 40.12 | ||
| EV/EBITDA | 5.32 |
EPS(TTM)0.16
EY4.89%
EPS(NY)0.34
Fwd EY10.29%
FCF(TTM)0.55
FCFY16.87%
OCF(TTM)0.72
OCFY21.95%
SpS6.76
BVpS3.57
TBVpS0.08
PEG (NY)0.44
PEG (5Y)1.68
Graham Number3.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.56% | ||
| ROE | -22.33% | ||
| ROCE | 6.66% | ||
| ROIC | 4.61% | ||
| ROICexc | 4.65% | ||
| ROICexgc | 11.06% | ||
| OM | 5.97% | ||
| PM (TTM) | N/A | ||
| GM | 60.91% | ||
| FCFM | 8.15% |
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%
ROICexgc growth 3Y-29.15%
ROICexgc 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-Score6
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.1 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 22.75% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 5.5 | ||
| Cash Conversion | 63.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 1.39 |
F-Score6
WACC7.19%
ROIC/WACC0.64
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%15.6%
EPS Next Y46.62%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.48%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.33%
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y47.62%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year247.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-8.18%
FCF growth 3Y-21.04%
FCF growth 5Y7.66%
OCF growth 1Y-4.46%
OCF growth 3Y-16.96%
OCF growth 5Y-4.19%