ROOTS CORP (ROOT.CA) Fundamental Analysis & Valuation

TSX:ROOT • CA7766521099

Current stock price

3.66 CAD
+0.08 (+2.23%)
Last:

This ROOT.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. ROOT.CA Profitability Analysis

1.1 Basic Checks

  • ROOT had positive earnings in the past year.
  • In the past year ROOT had a positive cash flow from operations.
  • Of the past 5 years ROOT 4 years were profitable.
  • Each year in the past 5 years ROOT had a positive operating cash flow.
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

  • ROOT has a worse Return On Assets (-9.97%) than 89.47% of its industry peers.
  • ROOT's Return On Equity of -22.04% is on the low side compared to the rest of the industry. ROOT is outperformed by 89.47% of its industry peers.
  • ROOT's Return On Invested Capital of 4.28% is in line compared to the rest of the industry. ROOT outperforms 42.11% 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 11.16%.
  • The last Return On Invested Capital (4.28%) for ROOT is above the 3 year average (3.51%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -9.97%
ROE -22.04%
ROIC 4.28%
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

  • With a Operating Margin value of 5.72%, ROOT perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
  • ROOT's Operating Margin has improved in the last couple of years.
  • ROOT's Gross Margin of 61.09% is amongst the best of the industry. ROOT outperforms 94.74% of its industry peers.
  • ROOT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 5.72%
PM (TTM) N/A
GM 61.09%
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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2

2. ROOT.CA Health Analysis

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.
  • 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

  • ROOT has an Altman-Z score of 1.42. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
  • ROOT's Altman-Z score of 1.42 is on the low side compared to the rest of the industry. ROOT is outperformed by 73.68% of its industry peers.
  • The Debt to FCF ratio of ROOT is 5.44, which is a neutral value as it means it would take ROOT, 5.44 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ROOT (5.44) is comparable to the rest of the industry.
  • ROOT has a Debt/Equity ratio of 0.68. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.68, ROOT is in line with its industry, outperforming 52.63% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 5.44
Altman-Z 1.42
ROIC/WACC0.84
WACC5.12%
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 1.41 indicates that ROOT should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.41, ROOT is in line with its industry, outperforming 57.89% of the companies in the same industry.
  • ROOT has a Quick Ratio of 1.41. This is a bad value and indicates that ROOT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • With a Quick ratio value of 0.39, ROOT is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 0.39
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. ROOT.CA Growth Analysis

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.
  • Looking at the last year, ROOT shows a small growth in Revenue. The Revenue has grown by 4.87% in the last 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%14.29%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.82%

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 31.90% on average per year.
  • The Revenue is expected to grow by 3.86% on average over the next years.
EPS Next Y33.87%
EPS Next 2Y45.04%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue Next Year6.52%
Revenue Next 2Y4.53%
Revenue Next 3Y3.86%
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 2028 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 2028 0.2 0.4 0.6

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6

4. ROOT.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • ROOT is valuated rather expensively with a Price/Earnings ratio of 22.88.
  • Based on the Price/Earnings ratio, ROOT is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of ROOT to the average of the S&P500 Index (25.61), we can say ROOT is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 10.87, the valuation of ROOT can be described as reasonable.
  • Based on the Price/Forward Earnings ratio, ROOT is valued cheaper than 84.21% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ROOT to the average of the S&P500 Index (22.79), we can say ROOT is valued rather cheaply.
Industry RankSector Rank
PE 22.88
Fwd PE 10.87
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 a bit cheaper than 63.16% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than 68.42% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.36
EV/EBITDA 5.83
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

  • 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 31.90% in the coming years.
PEG (NY)0.68
PEG (5Y)1.88
EPS Next 2Y45.04%
EPS Next 3Y31.9%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ROOT.CA Dividend Analysis

5.1 Amount

  • ROOT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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ROOT.CA Fundamentals: All Metrics, Ratios and Statistics

ROOTS CORP

TSX:ROOT (3/25/2026, 7:00:00 PM)

3.66

+0.08 (+2.23%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-10
Earnings (Next)04-07
Inst Owners0.05%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap143.47M
Revenue(TTM)273.02M
Net Income(TTM)-31.73M
Analysts82.86
Price Target4.08 (11.48%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
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)0.91%
Valuation
Industry RankSector Rank
PE 22.88
Fwd PE 10.87
P/S 0.53
P/FCF 6.36
P/OCF 5.03
P/B 1
P/tB 23.38
EV/EBITDA 5.83
EPS(TTM)0.16
EY4.37%
EPS(NY)0.34
Fwd EY9.2%
FCF(TTM)0.58
FCFY15.72%
OCF(TTM)0.73
OCFY19.89%
SpS6.96
BVpS3.67
TBVpS0.16
PEG (NY)0.68
PEG (5Y)1.88
Graham Number3.64
Profitability
Industry RankSector Rank
ROA -9.97%
ROE -22.04%
ROCE 6.18%
ROIC 4.28%
ROICexc 4.41%
ROICexgc 10.05%
OM 5.72%
PM (TTM) N/A
GM 61.09%
FCFM 8.26%
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 Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 5.44
Debt/EBITDA 2.21
Cap/Depr 20.85%
Cap/Sales 2.19%
Interest Coverage 5.84
Cash Conversion 64.34%
Profit Quality N/A
Current Ratio 1.41
Quick Ratio 0.39
Altman-Z 1.42
F-Score6
WACC5.12%
ROIC/WACC0.84
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%14.29%
EPS Next Y33.87%
EPS Next 2Y45.04%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue 1Y (TTM)4.87%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.82%
Revenue Next Year6.52%
Revenue Next 2Y4.53%
Revenue Next 3Y3.86%
Revenue Next 5YN/A
EBIT growth 1Y18.31%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year237.64%
EBIT Next 3Y59.75%
EBIT Next 5YN/A
FCF growth 1Y-26.74%
FCF growth 3Y-21.04%
FCF growth 5Y7.66%
OCF growth 1Y-20.27%
OCF growth 3Y-16.96%
OCF growth 5Y-4.19%

ROOTS CORP / ROOT.CA Fundamental Analysis FAQ

What is the fundamental rating for ROOT stock?

ChartMill assigns a fundamental rating of 4 / 10 to ROOT.CA.


What is the valuation status of ROOTS CORP (ROOT.CA) stock?

ChartMill assigns a valuation rating of 6 / 10 to ROOTS CORP (ROOT.CA). This can be considered as Fairly Valued.


How profitable is ROOTS CORP (ROOT.CA) stock?

ROOTS CORP (ROOT.CA) has a profitability rating of 5 / 10.


What is the expected EPS growth for ROOTS CORP (ROOT.CA) stock?

The Earnings per Share (EPS) of ROOTS CORP (ROOT.CA) is expected to grow by 33.87% in the next year.