ROOT INC/OH -CLASS A (ROOT) Stock Fundamental Analysis

NASDAQ:ROOT • US77664L2079

61.59 USD
-1.62 (-2.56%)
At close: Feb 19, 2026
61.59 USD
0 (0%)
After Hours: 2/19/2026, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to ROOT. ROOT was compared to 149 industry peers in the Insurance industry. The financial health of ROOT is average, but there are quite some concerns on its profitability. ROOT is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

2

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 negative earnings in 4 of the past 5 years.
  • In the past 5 years ROOT reported 4 times negative operating cash flow.
ROOT Yearly Net Income VS EBIT VS OCF VS FCFROOT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 -200M -400M

1.2 Ratios

  • ROOT's Return On Assets of 3.28% is fine compared to the rest of the industry. ROOT outperforms 68.46% of its industry peers.
  • ROOT has a Return On Equity of 14.30%. This is in the better half of the industry: ROOT outperforms 68.46% of its industry peers.
  • The Return On Invested Capital of ROOT (4.32%) is better than 71.81% of its industry peers.
Industry RankSector Rank
ROA 3.28%
ROE 14.3%
ROIC 4.32%
ROA(3y)-10.55%
ROA(5y)-18.35%
ROE(3y)-40.11%
ROE(5y)-47.17%
ROIC(3y)N/A
ROIC(5y)N/A
ROOT Yearly ROA, ROE, ROICROOT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150

1.3 Margins

  • With a Profit Margin value of 3.73%, ROOT is not doing good in the industry: 71.14% of the companies in the same industry are doing better.
  • With a Operating Margin value of 5.97%, ROOT is not doing good in the industry: 70.47% of the companies in the same industry are doing better.
Industry RankSector Rank
OM 5.97%
PM (TTM) 3.73%
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
ROOT Yearly Profit, Operating, Gross MarginsROOT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

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.
  • The number of shares outstanding for ROOT has been increased compared to 1 year ago.
  • ROOT has more shares outstanding than it did 5 years ago.
  • ROOT has a better debt/assets ratio than last year.
ROOT Yearly Shares OutstandingROOT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
ROOT Yearly Total Debt VS Total AssetsROOT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

  • Based on the Altman-Z score of 0.08, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.08, ROOT is in the better half of the industry, outperforming 69.80% of the companies in the same industry.
  • The Debt to FCF ratio of ROOT is 1.03, which is an excellent value as it means it would take ROOT, only 1.03 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ROOT (1.03) is better than 69.80% of its industry peers.
  • A Debt/Equity ratio of 0.52 indicates that ROOT is somewhat dependend on debt financing.
  • The Debt to Equity ratio of ROOT (0.52) is worse than 73.15% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for ROOT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 1.03
Altman-Z 0.08
ROIC/WACC0.44
WACC9.85%
ROOT Yearly LT Debt VS Equity VS FCFROOT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

  • A Current Ratio of 0.19 indicates that ROOT may have some problems paying its short term obligations.
  • ROOT has a Current ratio of 0.19. This is in the better half of the industry: ROOT outperforms 69.13% of its industry peers.
  • ROOT has a Quick Ratio of 0.19. 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 Quick ratio of ROOT (0.19) is better than 69.13% of its industry peers.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.19
ROOT Yearly Current Assets VS Current LiabilitesROOT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 50M 100M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 369.11% over the past year.
  • The Revenue has grown by 38.50% in the past year. This is a very strong growth!
  • ROOT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.31% yearly.
EPS 1Y (TTM)369.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-125.93%
Revenue 1Y (TTM)38.5%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%26.86%

3.2 Future

  • The Earnings Per Share is expected to grow by 26.15% on average over the next years. This is a very strong growth
  • The Revenue is expected to decrease by -8.30% on average over the next years.
EPS Next Y6.52%
EPS Next 2Y13.94%
EPS Next 3Y26.15%
EPS Next 5YN/A
Revenue Next Year32.04%
Revenue Next 2Y18.24%
Revenue Next 3Y15.47%
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.
ROOT Yearly Revenue VS EstimatesROOT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B
ROOT Yearly EPS VS EstimatesROOT Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 0 -20 -40 -60

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • ROOT is valuated rather expensively with a Price/Earnings ratio of 18.61.
  • Compared to the rest of the industry, the Price/Earnings ratio of ROOT indicates a slightly more expensive valuation: ROOT is more expensive than 68.46% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.09, ROOT is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 27.74, the valuation of ROOT can be described as expensive.
  • Based on the Price/Forward Earnings ratio, ROOT is valued a bit more expensive than 77.18% of the companies in the same industry.
  • ROOT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.98.
Industry RankSector Rank
PE 18.61
Fwd PE 27.74
ROOT Price Earnings VS Forward Price EarningsROOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ROOT is valued a bit cheaper than the industry average as 76.51% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than 70.47% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.99
EV/EBITDA 5.35
ROOT Per share dataROOT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ROOT does not grow enough to justify the current Price/Earnings ratio.
  • A more expensive valuation may be justified as ROOT's earnings are expected to grow with 26.15% in the coming years.
PEG (NY)2.85
PEG (5Y)N/A
EPS Next 2Y13.94%
EPS Next 3Y26.15%

More info and screens

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

0

5. Dividend

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

ROOT INC/OH -CLASS A

NASDAQ:ROOT (2/19/2026, 8:00:01 PM)

After market: 61.59 0 (0%)

61.59

-1.62 (-2.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-05
Earnings (Next)02-25
Inst Owners63.81%
Inst Owner Change0.46%
Ins Owners3%
Ins Owner Change-0.17%
Market Cap955.26M
Revenue(TTM)1.45B
Net Income(TTM)53.90M
Analysts76.67
Price Target113.83 (84.82%)
Short Float %18.83%
Short Ratio8.74
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)2
Avg EPS beat(2)78.65%
Min EPS beat(2)30.48%
Max EPS beat(2)126.81%
EPS beat(4)4
Avg EPS beat(4)188.68%
Min EPS beat(4)30.48%
Max EPS beat(4)386.52%
EPS beat(8)8
Avg EPS beat(8)147.23%
EPS beat(12)11
Avg EPS beat(12)101.36%
EPS beat(16)15
Avg EPS beat(16)82.29%
Revenue beat(2)2
Avg Revenue beat(2)4.85%
Min Revenue beat(2)3.72%
Max Revenue beat(2)5.98%
Revenue beat(4)4
Avg Revenue beat(4)7.28%
Min Revenue beat(4)3.72%
Max Revenue beat(4)10.07%
Revenue beat(8)8
Avg Revenue beat(8)14.8%
Revenue beat(12)12
Avg Revenue beat(12)15.56%
Revenue beat(16)14
Avg Revenue beat(16)14.88%
PT rev (1m)-6.06%
PT rev (3m)-10.29%
EPS NQ rev (1m)-28.37%
EPS NQ rev (3m)-651.06%
EPS NY rev (1m)5%
EPS NY rev (3m)-14.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2%
Valuation
Industry RankSector Rank
PE 18.61
Fwd PE 27.74
P/S 0.66
P/FCF 4.99
P/OCF 4.65
P/B 2.53
P/tB 2.53
EV/EBITDA 5.35
EPS(TTM)3.31
EY5.37%
EPS(NY)2.22
Fwd EY3.6%
FCF(TTM)12.33
FCFY20.03%
OCF(TTM)13.26
OCFY21.52%
SpS93.28
BVpS24.31
TBVpS24.31
PEG (NY)2.85
PEG (5Y)N/A
Graham Number42.55
Profitability
Industry RankSector Rank
ROA 3.28%
ROE 14.3%
ROCE 5.47%
ROIC 4.32%
ROICexc 7.36%
ROICexgc 9.66%
OM 5.97%
PM (TTM) 3.73%
GM N/A
FCFM 13.22%
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 1.03
Debt/EBITDA 2.01
Cap/Depr 124.35%
Cap/Sales 0.99%
Interest Coverage 250
Cash Conversion 210.01%
Profit Quality 354.92%
Current Ratio 0.19
Quick Ratio 0.19
Altman-Z 0.08
F-Score7
WACC9.85%
ROIC/WACC0.44
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)369.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-125.93%
EPS Next Y6.52%
EPS Next 2Y13.94%
EPS Next 3Y26.15%
EPS Next 5YN/A
Revenue 1Y (TTM)38.5%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%26.86%
Revenue Next Year32.04%
Revenue Next 2Y18.24%
Revenue Next 3Y15.47%
Revenue Next 5Y-8.3%
EBIT growth 1Y123.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year135.8%
EBIT Next 3Y45.38%
EBIT Next 5Y36.92%
FCF growth 1Y241.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y262.66%
OCF growth 3YN/A
OCF growth 5YN/A

ROOT INC/OH -CLASS A / ROOT FAQ

What is the fundamental rating for ROOT stock?

ChartMill assigns a fundamental rating of 3 / 10 to ROOT.


What is the valuation status of ROOT INC/OH -CLASS A (ROOT) stock?

ChartMill assigns a valuation rating of 3 / 10 to ROOT INC/OH -CLASS A (ROOT). This can be considered as Overvalued.


How profitable is ROOT INC/OH -CLASS A (ROOT) stock?

ROOT INC/OH -CLASS A (ROOT) has a profitability rating of 2 / 10.


What is the expected EPS growth for ROOT INC/OH -CLASS A (ROOT) stock?

The Earnings per Share (EPS) of ROOT INC/OH -CLASS A (ROOT) is expected to grow by 6.52% in the next year.