ROOTS CORP (ROOT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ROOT - CA7766521099 - Common Stock
3.25 CAD
-0.02 (-0.61%)
Taking everything into account, ROOT scores 4 out of 10 in our fundamental rating. ROOT was compared to 18 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ROOT.
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.
- ROOT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ROOT has a Return On Assets of -9.97%. This is amonst the worse of the industry: ROOT underperforms 88.89% of its industry peers.
- With a Return On Equity value of -22.04%, ROOT is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
- ROOT has a worse Return On Invested Capital (4.28%) than 61.11% 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 10.62%.
- The 3 year average ROIC (3.51%) for ROOT is below the current ROIC(4.28%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- ROOT's Operating Margin of 5.72% is in line compared to the rest of the industry. ROOT outperforms 50.00% of its industry peers.
- ROOT's Operating Margin has improved in the last couple of years.
- ROOT has a Gross Margin of 61.09%. This is amongst the best in the industry. ROOT outperforms 94.44% of its industry peers.
- ROOT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ROOT is destroying value.
- Compared to 1 year ago, ROOT has more shares outstanding
- The number of shares outstanding for ROOT has been reduced compared to 5 years ago.
- The debt/assets ratio for ROOT is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.37, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of ROOT (1.37) is worse than 61.11% 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.
- ROOT has a better Debt to FCF ratio (5.44) than 61.11% of its industry peers.
- A Debt/Equity ratio of 0.68 indicates that 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 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.59
WACC7.24%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that ROOT should not have too much problems paying its short term obligations.
- ROOT's Current ratio of 1.41 is fine compared to the rest of the industry. ROOT outperforms 61.11% of its industry peers.
- 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.
- ROOT has a Quick ratio of 0.39. This is in the lower half of the industry: ROOT underperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.39 |
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.
- Measured over the past years, ROOT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.20% on average per year.
- Looking at the last year, ROOT shows a small growth in Revenue. The Revenue has grown by 4.87% in the last year.
- The Revenue has been decreasing by -4.44% on average over the past years.
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
- The Earnings Per Share is expected to grow by 31.90% on average over the next years. This is a very strong growth
- ROOT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
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
- 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.
- 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
- With a Price/Earnings ratio of 20.31, ROOT is valued on the expensive side.
- Based on the Price/Earnings ratio, ROOT is valued a bit cheaper than 66.67% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ROOT to the average of the S&P500 Index (27.47), we can say ROOT is valued slightly cheaper.
- ROOT is valuated reasonably with a Price/Forward Earnings ratio of 9.66.
- 83.33% of the companies in the same industry are more expensive than ROOT, based on the Price/Forward Earnings ratio.
- ROOT is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 9.66 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ROOT is valued a bit cheaper than 72.22% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.68 | ||
| EV/EBITDA | 5.5 |
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)0.6
PEG (5Y)1.67
EPS Next 2Y45.04%
EPS Next 3Y31.9%
5. Dividend
5.1 Amount
- ROOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:ROOT (1/16/2026, 7:00:00 PM)
3.25
-0.02 (-0.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-10 2025-12-10/bmo
Earnings (Next)04-07 2026-04-07
Inst Owners0.05%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap128.18M
Revenue(TTM)273.02M
Net Income(TTM)-31.73M
Analysts82.86
Price Target4.08 (25.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)-4.65%
EPS NQ rev (3m)-4.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.91%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.31 | ||
| Fwd PE | 9.66 | ||
| P/S | 0.47 | ||
| P/FCF | 5.68 | ||
| P/OCF | 4.49 | ||
| P/B | 0.89 | ||
| P/tB | 20.89 | ||
| EV/EBITDA | 5.5 |
EPS(TTM)0.16
EY4.92%
EPS(NY)0.34
Fwd EY10.36%
FCF(TTM)0.57
FCFY17.59%
OCF(TTM)0.72
OCFY22.26%
SpS6.92
BVpS3.65
TBVpS0.16
PEG (NY)0.6
PEG (5Y)1.67
Graham Number3.62
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.37 |
F-Score6
WACC7.24%
ROIC/WACC0.59
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 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 7 / 10 to ROOTS CORP (ROOT.CA). This can be considered as Undervalued.
How profitable is ROOTS CORP (ROOT.CA) stock?
ROOTS CORP (ROOT.CA) has a profitability rating of 4 / 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.