ROOT INC/OH -CLASS A (ROOT) Stock Fundamental Analysis
USA - NASDAQ:ROOT - US77664L2079 - Common Stock
100.122 USD
+1.04 (+1.05%)
We assign a fundamental rating of 4 out of 10 to ROOT. ROOT was compared to 146 industry peers in the Insurance industry. ROOT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ROOT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ROOT had positive earnings in the past year.
ROOT had a positive operating cash flow in the past year.
ROOT had negative earnings in 4 of the past 5 years.
In the past 5 years ROOT reported 4 times negative operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 5.10%, ROOT belongs to the best of the industry, outperforming 86.99% of the companies in the same industry.
The Return On Equity of ROOT (22.72%) is better than 90.41% of its industry peers.
The Return On Invested Capital of ROOT (6.21%) is better than 86.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 22.72% | ||
| ROIC | 6.21% |
ROA(3y)-10.55%
ROA(5y)-18.35%
ROE(3y)-40.11%
ROE(5y)-47.17%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.94%, ROOT is in line with its industry, outperforming 41.78% of the companies in the same industry.
The Operating Margin of ROOT (8.83%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.83% | ||
| PM (TTM) | 5.94% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
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.
ROOT has more shares outstanding than it did 1 year ago.
ROOT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ROOT has an improved debt to assets ratio.
2.2 Solvency
ROOT has an Altman-Z score of 0.38. 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 0.38 is fine compared to the rest of the industry. ROOT outperforms 69.18% of its industry peers.
The Debt to FCF ratio of ROOT is 1.07, which is an excellent value as it means it would take ROOT, only 1.07 years of fcf income to pay off all of its debts.
ROOT's Debt to FCF ratio of 1.07 is fine compared to the rest of the industry. ROOT outperforms 64.38% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that ROOT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, ROOT is doing worse than 71.23% of the companies in the same industry.
Although ROOT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 0.38 |
ROIC/WACC0.66
WACC9.46%
2.3 Liquidity
ROOT has a Current Ratio of 0.27. This is a bad value and indicates that ROOT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ROOT (0.27) is better than 69.86% of its industry peers.
A Quick Ratio of 0.27 indicates that ROOT may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.27, ROOT is doing good in the industry, outperforming 69.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 187.28% over the past year.
ROOT shows a strong growth in Revenue. In the last year, the Revenue has grown by 59.76%.
Measured over the past years, ROOT shows a very strong growth in Revenue. The Revenue has been growing by 32.31% on average per year.
EPS 1Y (TTM)187.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%348.08%
Revenue 1Y (TTM)59.76%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%32.86%
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 34.96% on average per year.
The Revenue is expected to decrease by -8.30% on average over the next years.
EPS Next Y41.4%
EPS Next 2Y32.81%
EPS Next 3Y34.96%
EPS Next 5YN/A
Revenue Next Year29.45%
Revenue Next 2Y19.19%
Revenue Next 3Y17.11%
Revenue Next 5Y-8.3%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.98, which indicates a rather expensive current valuation of ROOT.
Based on the Price/Earnings ratio, ROOT is valued a bit more expensive than the industry average as 67.12% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of ROOT to the average of the S&P500 Index (27.30), we can say ROOT is valued slightly cheaper.
ROOT is valuated quite expensively with a Price/Forward Earnings ratio of 33.20.
Based on the Price/Forward Earnings ratio, ROOT is valued a bit more expensive than the industry average as 78.08% of the companies are valued more cheaply.
ROOT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.98 | ||
| Fwd PE | 33.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROOT is valued a bit cheaper than 60.27% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 62.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.38 | ||
| EV/EBITDA | 8.2 |
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 34.96% in the coming years.
PEG (NY)0.48
PEG (5Y)N/A
EPS Next 2Y32.81%
EPS Next 3Y34.96%
5. Dividend
5.1 Amount
ROOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ROOT (9/15/2025, 3:49:59 PM)
100.122
+1.04 (+1.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.95%
Inst Owner Change7.48%
Ins Owners3.65%
Ins Owner Change-0.2%
Market Cap1.55B
Analysts76.67
Price Target133.21 (33.05%)
Short Float %13.65%
Short Ratio3.15
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)2
Avg EPS beat(2)168.86%
Min EPS beat(2)126.81%
Max EPS beat(2)210.91%
EPS beat(4)4
Avg EPS beat(4)239.74%
Min EPS beat(4)126.81%
Max EPS beat(4)386.52%
EPS beat(8)7
Avg EPS beat(8)142.06%
EPS beat(12)11
Avg EPS beat(12)101.21%
EPS beat(16)15
Avg EPS beat(16)81.89%
Revenue beat(2)2
Avg Revenue beat(2)7.66%
Min Revenue beat(2)5.98%
Max Revenue beat(2)9.34%
Revenue beat(4)4
Avg Revenue beat(4)8.81%
Min Revenue beat(4)5.98%
Max Revenue beat(4)10.07%
Revenue beat(8)8
Avg Revenue beat(8)20.33%
Revenue beat(12)11
Avg Revenue beat(12)14.99%
Revenue beat(16)14
Avg Revenue beat(16)18.06%
PT rev (1m)-9.93%
PT rev (3m)-2.39%
EPS NQ rev (1m)-225.07%
EPS NQ rev (3m)-170.03%
EPS NY rev (1m)4.21%
EPS NY rev (3m)132.4%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)3.86%
Revenue NY rev (1m)3.52%
Revenue NY rev (3m)4.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.98 | ||
| Fwd PE | 33.2 | ||
| P/S | 1.13 | ||
| P/FCF | 8.38 | ||
| P/OCF | 7.84 | ||
| P/B | 4.34 | ||
| P/tB | 4.34 | ||
| EV/EBITDA | 8.2 |
EPS(TTM)5.01
EY5%
EPS(NY)3.02
Fwd EY3.01%
FCF(TTM)11.95
FCFY11.93%
OCF(TTM)12.78
OCFY12.76%
SpS88.33
BVpS23.07
TBVpS23.07
PEG (NY)0.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 22.72% | ||
| ROCE | 7.87% | ||
| ROIC | 6.21% | ||
| ROICexc | 10.69% | ||
| ROICexgc | 14.27% | ||
| OM | 8.83% | ||
| PM (TTM) | 5.94% | ||
| GM | N/A | ||
| FCFM | 13.53% |
ROA(3y)-10.55%
ROA(5y)-18.35%
ROE(3y)-40.11%
ROE(5y)-47.17%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 106.67% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 148.98% | ||
| Profit Quality | 227.9% | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.38 |
F-Score7
WACC9.46%
ROIC/WACC0.66
Cap/Depr(3y)75.66%
Cap/Depr(5y)79.53%
Cap/Sales(3y)2.11%
Cap/Sales(5y)2.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)187.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%348.08%
EPS Next Y41.4%
EPS Next 2Y32.81%
EPS Next 3Y34.96%
EPS Next 5YN/A
Revenue 1Y (TTM)59.76%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%32.86%
Revenue Next Year29.45%
Revenue Next 2Y19.19%
Revenue Next 3Y17.11%
Revenue Next 5Y-8.3%
EBIT growth 1Y533.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year122.46%
EBIT Next 3Y46.88%
EBIT Next 5Y36.92%
FCF growth 1Y188.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y198.7%
OCF growth 3YN/A
OCF growth 5YN/A