ROOTS CORP (ROOT.CA) Stock Fundamental Analysis
Canada - TSX:ROOT - CA7766521099 - Common Stock
3.32 CAD
+0.02 (+0.61%)
ROOT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 15 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 is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years ROOT always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ROOT (-10.56%) is worse than 93.33% of its industry peers.
The Return On Equity of ROOT (-22.33%) is worse than 86.67% of its industry peers.
ROOT has a Return On Invested Capital of 4.61%. This is in the lower half of the industry: ROOT underperforms 60.00% 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 9.28%.
The last Return On Invested Capital (4.61%) for ROOT is above the 3 year average (3.51%), which is a sign of increasing profitability.
| 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's Gross Margin of 60.91% is amongst the best of the industry. ROOT outperforms 93.33% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
ROOT has an Altman-Z score of 1.40. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ROOT (1.40) is worse than 66.67% of its industry peers.
ROOT has a debt to FCF ratio of 5.10. This is a neutral value as ROOT would need 5.10 years to pay back of 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.
With a Debt to Equity ratio value of 0.62, ROOT perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.67
WACC6.91%
2.3 Liquidity
ROOT has a Current Ratio of 1.18. This is a normal value and indicates that ROOT is financially healthy and should not expect problems in meeting its short term obligations.
ROOT has a Current ratio of 1.18. This is in the lower half of the industry: ROOT underperforms 60.00% of its industry peers.
ROOT has a Quick Ratio of 1.18. 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 0.34. This is amonst the worse of the industry: ROOT underperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.34 |
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.
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 4.48% 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%15.6%
Revenue 1Y (TTM)4.48%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.33%
3.2 Future
The Earnings Per Share is expected to grow by 45.04% 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 3.53% yearly.
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 20.75 indicates a rather expensive valuation of ROOT.
Compared to the rest of the industry, the Price/Earnings ratio of ROOT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.56. ROOT is around the same levels.
The Price/Forward Earnings ratio is 9.86, which indicates a very decent valuation of ROOT.
ROOT's Price/Forward Earnings ratio is rather cheap when compared to the industry. ROOT is cheaper than 93.33% of the companies in the same industry.
ROOT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.75 | ||
| Fwd PE | 9.86 |
4.2 Price Multiples
86.67% of the companies in the same industry are more expensive than ROOT, based on the Enterprise Value to EBITDA ratio.
73.33% of the companies in the same industry are more expensive than ROOT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.02 | ||
| EV/EBITDA | 5.36 |
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)0.45
PEG (5Y)1.7
EPS Next 2Y45.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ROOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ROOT (11/17/2025, 7:00:00 PM)
3.32
+0.02 (+0.61%)
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 Cap131.77M
Revenue(TTM)268.46M
Net Income(TTM)-31.62M
Analysts82.86
Price Target4.08 (22.89%)
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)0%
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 | 20.75 | ||
| Fwd PE | 9.86 | ||
| P/S | 0.49 | ||
| P/FCF | 6.02 | ||
| P/OCF | 4.62 | ||
| P/B | 0.93 | ||
| P/tB | 40.73 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)0.16
EY4.82%
EPS(NY)0.34
Fwd EY10.14%
FCF(TTM)0.55
FCFY16.61%
OCF(TTM)0.72
OCFY21.62%
SpS6.76
BVpS3.57
TBVpS0.08
PEG (NY)0.45
PEG (5Y)1.7
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 | 1.4 |
F-Score6
WACC6.91%
ROIC/WACC0.67
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%
ROOTS CORP / ROOT.CA FAQ
What is the fundamental rating for ROOT stock?
ChartMill assigns a fundamental rating of 4 / 10 to ROOT.CA.
Can you provide the valuation status for ROOTS CORP?
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 4 / 10.
What is the valuation of ROOTS CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ROOTS CORP (ROOT.CA) is 20.75 and the Price/Book (PB) ratio is 0.93.