ROOTS CORP (ROOT.CA) Fundamental Analysis & Valuation

TSX:ROOT • CA7766521099

Current stock price

3.84 CAD
-0.11 (-2.78%)
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.
  • In the past 5 years ROOT always reported a positive cash flow from operatings.
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 Return On Assets of -9.97%. This is amonst the worse of the industry: ROOT underperforms 89.47% of its industry peers.
  • ROOT has a worse Return On Equity (-22.04%) than 89.47% of its industry peers.
  • ROOT has a Return On Invested Capital (4.28%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ROOT is significantly below the industry average of 12.42%.
  • 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

  • Looking at the Operating Margin, with a value of 5.72%, ROOT is in line with its industry, outperforming 52.63% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ROOT has grown nicely.
  • The Gross Margin of ROOT (61.09%) is better than 94.74% of its industry peers.
  • In the last couple of years the Gross Margin of ROOT has grown nicely.
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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3

2. ROOT.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROOT is destroying value.
  • ROOT has more shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ROOT has less shares outstanding
  • ROOT has a worse debt/assets ratio than last year.
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 1.46, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of ROOT (1.46) is worse than 73.68% of its industry peers.
  • ROOT has a debt to FCF ratio of 5.44. This is a neutral value as ROOT would need 5.44 years to pay back of all of its debts.
  • ROOT has a Debt to FCF ratio of 5.44. This is comparable to the rest of the industry: ROOT outperforms 52.63% of its industry peers.
  • ROOT has a Debt/Equity ratio of 0.68. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
  • ROOT has a Debt to Equity ratio (0.68) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 5.44
Altman-Z 1.46
ROIC/WACC0.81
WACC5.28%
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.
  • With a decent Current ratio value of 1.41, ROOT is doing good in the industry, outperforming 63.16% of the companies in the same industry.
  • A Quick Ratio of 0.39 indicates that ROOT may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.39, ROOT is doing worse than 78.95% of the companies in the same industry.
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

  • 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.
  • The Revenue has been growing slightly by 0.10% in the past 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%5%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%4.2%

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
  • The Revenue is expected to grow by 3.99% on average over the next years.
EPS Next Y27.5%
EPS Next 2Y45.04%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue Next Year6.56%
Revenue Next 2Y5.01%
Revenue Next 3Y3.99%
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.
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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5

4. ROOT.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 24.00, ROOT is valued on the expensive side.
  • Compared to the rest of the industry, the Price/Earnings ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 63.16% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, ROOT is valued at the same level.
  • A Price/Forward Earnings ratio of 11.41 indicates a reasonable valuation of ROOT.
  • ROOT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ROOT is cheaper than 78.95% of the companies in the same industry.
  • ROOT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.24.
Industry RankSector Rank
PE 24
Fwd PE 11.41
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

  • ROOT's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.68
EV/EBITDA 6.09
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.
  • A more expensive valuation may be justified as ROOT's earnings are expected to grow with 31.90% in the coming years.
PEG (NY)0.87
PEG (5Y)1.97
EPS Next 2Y45.04%
EPS Next 3Y31.9%

More info and screens

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

0

5. ROOT.CA Dividend Analysis

5.1 Amount

  • No dividends for ROOT!.
Industry RankSector Rank
Dividend Yield 0%

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ROOT.CA Fundamentals: All Metrics, Ratios and Statistics

ROOTS CORP

TSX:ROOT (4/24/2026, 7:00:00 PM)

3.84

-0.11 (-2.78%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-09
Earnings (Next)08-31
Inst Owners0.05%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap150.53M
Revenue(TTM)262.92M
Net Income(TTM)-31.73M
Analysts82.86
Price Target4.08 (6.25%)
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)-4.76%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 24
Fwd PE 11.41
P/S 0.55
P/FCF 6.68
P/OCF 5.28
P/B 1.05
P/tB 24.53
EV/EBITDA 6.09
EPS(TTM)0.16
EY4.17%
EPS(NY)0.34
Fwd EY8.77%
FCF(TTM)0.58
FCFY14.98%
OCF(TTM)0.73
OCFY18.96%
SpS6.96
BVpS3.67
TBVpS0.16
PEG (NY)0.87
PEG (5Y)1.97
Graham Number3.63559 (-5.32%)
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 1.46
F-Score6
WACC5.28%
ROIC/WACC0.81
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%5%
EPS Next Y27.5%
EPS Next 2Y45.04%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue 1Y (TTM)0.1%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%4.2%
Revenue Next Year6.56%
Revenue Next 2Y5.01%
Revenue Next 3Y3.99%
Revenue Next 5YN/A
EBIT growth 1Y18.31%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year236.9%
EBIT Next 3Y60.04%
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 for ROOT stock?

ChartMill assigns a valuation rating of 5 / 10 to ROOTS CORP (ROOT.CA). This can be considered as Fairly Valued.


Can you provide the profitability details for ROOTS CORP?

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


Can you provide the PE and PB ratios for ROOT stock?

The Price/Earnings (PE) ratio for ROOTS CORP (ROOT.CA) is 24 and the Price/Book (PB) ratio is 1.05.


What is the financial health of ROOTS CORP (ROOT.CA) stock?

The financial health rating of ROOTS CORP (ROOT.CA) is 3 / 10.