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ROOTS CORP (ROOT.CA) Stock Fundamental Analysis

TSX:ROOT - Toronto Stock Exchange - CA7766521099 - Common Stock - Currency: CAD

3.3  +0.04 (+1.23%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to ROOT. ROOT was compared to 17 industry peers in the Specialty Retail industry. There are concerns on the financial health of ROOT while its profitability can be described as average. ROOT is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

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5

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.
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

With a Return On Assets value of -10.16%, ROOT is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -20.96%, ROOT is doing worse than 70.59% of the companies in the same industry.
ROOT's Return On Invested Capital of 3.65% is in line compared to the rest of the industry. ROOT outperforms 58.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROOT is below the industry average of 6.10%.
The last Return On Invested Capital (3.65%) for ROOT is above the 3 year average (3.51%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -10.16%
ROE -20.96%
ROIC 3.65%
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

ROOT has a better Operating Margin (5.26%) than 64.71% of its industry peers.
In the last couple of years the Operating Margin of ROOT has grown nicely.
ROOT has a better Gross Margin (59.76%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of ROOT has grown nicely.
Industry RankSector Rank
OM 5.26%
PM (TTM) N/A
GM 59.76%
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. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ROOT is destroying value.
The number of shares outstanding for ROOT has been increased compared to 1 year ago.
ROOT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ROOT has a worse debt to assets ratio.
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 1.36, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
ROOT's Altman-Z score of 1.36 is in line compared to the rest of the industry. ROOT outperforms 41.18% of its industry peers.
The Debt to FCF ratio of ROOT is 4.68, which is a neutral value as it means it would take ROOT, 4.68 years of fcf income to pay off all of its debts.
ROOT has a better Debt to FCF ratio (4.68) than 70.59% of its industry peers.
ROOT has a Debt/Equity ratio of 0.58. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
The Debt to Equity ratio of ROOT (0.58) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 4.68
Altman-Z 1.36
ROIC/WACC0.52
WACC7%
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 1.39 indicates that ROOT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.39, ROOT perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
ROOT has a Quick Ratio of 1.39. 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's Quick ratio of 0.78 is in line compared to the rest of the industry. ROOT outperforms 58.82% of its industry peers.
Industry RankSector Rank
Current Ratio 1.39
Quick Ratio 0.78
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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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 100.00% over the past year.
ROOT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.20% yearly.
ROOT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
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%11.11%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%2.38%

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
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y84.87%
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

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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 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 0.2 0.4 0.6

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7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 20.63 indicates a rather expensive valuation of ROOT.
Compared to the rest of the industry, the Price/Earnings ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 64.71% of the companies listed in the same industry.
ROOT is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.16 indicates a reasonable valuation of ROOT.
Based on the Price/Forward Earnings ratio, ROOT is valued cheaper than 94.12% of the companies in the same industry.
ROOT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.63
Fwd PE 11.16
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 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ROOT is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
ROOT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ROOT is cheaper than 82.35% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.21
EV/EBITDA 5.04
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 45.04% in the coming years.
PEG (NY)0.24
PEG (5Y)1.69
EPS Next 2Y45.04%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for ROOT!.
Industry RankSector Rank
Dividend Yield N/A

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ROOTS CORP

TSX:ROOT (5/22/2025, 7:00:00 PM)

3.3

+0.04 (+1.23%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-09 2025-04-09/bmo
Earnings (Next)N/A N/A
Inst Owners0.01%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap133.49M
Analysts82.86
Price Target3.32 (0.61%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)2
Avg EPS beat(2)18.9%
Min EPS beat(2)0.55%
Max EPS beat(2)37.25%
EPS beat(4)4
Avg EPS beat(4)16.85%
Min EPS beat(4)0.55%
Max EPS beat(4)37.25%
EPS beat(8)5
Avg EPS beat(8)1.53%
EPS beat(12)7
Avg EPS beat(12)-6.17%
EPS beat(16)11
Avg EPS beat(16)7.3%
Revenue beat(2)1
Avg Revenue beat(2)-4.3%
Min Revenue beat(2)-10.02%
Max Revenue beat(2)1.42%
Revenue beat(4)2
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-10.02%
Max Revenue beat(4)3.79%
Revenue beat(8)3
Avg Revenue beat(8)-2.21%
Revenue beat(12)6
Avg Revenue beat(12)-1.34%
Revenue beat(16)8
Avg Revenue beat(16)-0.68%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-0.66%
Valuation
Industry RankSector Rank
PE 20.63
Fwd PE 11.16
P/S 0.51
P/FCF 5.21
P/OCF 4.13
P/B 0.84
P/tB 6.66
EV/EBITDA 5.04
EPS(TTM)0.16
EY4.85%
EPS(NY)0.3
Fwd EY8.96%
FCF(TTM)0.63
FCFY19.2%
OCF(TTM)0.8
OCFY24.22%
SpS6.5
BVpS3.94
TBVpS0.5
PEG (NY)0.24
PEG (5Y)1.69
Profitability
Industry RankSector Rank
ROA -10.16%
ROE -20.96%
ROCE 5.27%
ROIC 3.65%
ROICexc 4.2%
ROICexgc 10.78%
OM 5.26%
PM (TTM) N/A
GM 59.76%
FCFM 9.75%
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%
ROICexcg growth 3Y-29.15%
ROICexcg 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-Score5
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 4.68
Debt/EBITDA 2.11
Cap/Depr 22.6%
Cap/Sales 2.55%
Interest Coverage 4.28
Cash Conversion 74.33%
Profit Quality N/A
Current Ratio 1.39
Quick Ratio 0.78
Altman-Z 1.36
F-Score5
WACC7%
ROIC/WACC0.52
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%11.11%
EPS Next Y84.87%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.11%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%2.38%
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.82%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year91.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.31%
FCF growth 3Y-21.04%
FCF growth 5Y7.66%
OCF growth 1Y-16.44%
OCF growth 3Y-16.96%
OCF growth 5Y-4.19%