ROOT INC/OH -CLASS A (ROOT) Stock Fundamental Analysis
USA - NASDAQ:ROOT - US77664L2079 - Common Stock
81.84 USD
-0.36 (-0.44%)
80.84 USD
-1 (-1.22%)
We assign a fundamental rating of 3 out of 10 to ROOT. ROOT was compared to 146 industry peers in the Insurance industry. The financial health of ROOT is average, but there are quite some concerns on its profitability. While showing a medium growth rate, ROOT is valued expensive at the moment.
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 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
The Return On Assets of ROOT (3.28%) is better than 67.81% of its industry peers.
The Return On Equity of ROOT (14.30%) is better than 65.07% of its industry peers.
With a decent Return On Invested Capital value of 4.32%, ROOT is doing good in the industry, outperforming 74.66% of the companies in the same industry.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of ROOT (3.73%) is worse than 72.60% of its industry peers.
ROOT has a Operating Margin of 5.97%. This is in the lower half of the industry: ROOT underperforms 73.29% of its industry peers.
| Industry Rank | Sector 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
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 more shares outstanding than it did 5 years ago.
The debt/assets ratio for ROOT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.21, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
ROOT's Altman-Z score of 0.21 is fine compared to the rest of the industry. ROOT outperforms 67.12% of its industry peers.
ROOT has a debt to FCF ratio of 1.03. This is a very positive value and a sign of high solvency as it would only need 1.03 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.03, ROOT is doing good in the industry, outperforming 69.18% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that ROOT is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, ROOT is not doing good in the industry: 69.86% of the companies in the same industry are doing better.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 0.21 |
ROIC/WACC0.45
WACC9.66%
2.3 Liquidity
ROOT has a Current 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.
ROOT has a better Current ratio (0.19) than 67.81% 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.
ROOT's Quick ratio of 0.19 is fine compared to the rest of the industry. ROOT outperforms 67.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 369.11% over the past year.
Looking at the last year, ROOT shows a very strong growth in Revenue. The Revenue has grown by 38.50%.
The Revenue has been growing by 32.31% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, ROOT will show a very strong growth in Earnings Per Share. The EPS will grow by 28.19% on average per year.
The Revenue is expected to decrease by -8.30% on average over the next years.
EPS Next Y24.87%
EPS Next 2Y19.72%
EPS Next 3Y28.19%
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 24.73, which indicates a rather expensive current valuation of ROOT.
76.03% of the companies in the same industry are cheaper than ROOT, based on the Price/Earnings ratio.
ROOT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 33.39 indicates a quite expensive valuation of ROOT.
Based on the Price/Forward Earnings ratio, ROOT is valued a bit more expensive than the industry average as 78.77% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, ROOT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.73 | ||
| Fwd PE | 33.39 |
4.2 Price Multiples
ROOT's Enterprise Value to EBITDA ratio is in line with the industry average.
65.07% 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 | 6.61 | ||
| EV/EBITDA | 8.25 |
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 28.19% in the coming years.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y19.72%
EPS Next 3Y28.19%
5. Dividend
5.1 Amount
ROOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.84
-0.36 (-0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners63.47%
Inst Owner Change2.91%
Ins Owners3.12%
Ins Owner Change-0.17%
Market Cap1.26B
Revenue(TTM)1.45B
Net Income(TTM)53.90M
Analysts76.67
Price Target126.89 (55.05%)
Short Float %19.55%
Short Ratio5.27
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)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)-4.75%
PT rev (3m)-14.21%
EPS NQ rev (1m)-78.17%
EPS NQ rev (3m)-88.21%
EPS NY rev (1m)7.07%
EPS NY rev (3m)-7.98%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.73 | ||
| Fwd PE | 33.39 | ||
| P/S | 0.87 | ||
| P/FCF | 6.61 | ||
| P/OCF | 6.15 | ||
| P/B | 3.35 | ||
| P/tB | 3.35 | ||
| EV/EBITDA | 8.25 |
EPS(TTM)3.31
EY4.04%
EPS(NY)2.45
Fwd EY2.99%
FCF(TTM)12.38
FCFY15.13%
OCF(TTM)13.31
OCFY16.26%
SpS93.64
BVpS24.4
TBVpS24.4
PEG (NY)0.99
PEG (5Y)N/A
Graham Number42.63
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.21 |
F-Score7
WACC9.66%
ROIC/WACC0.45
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 Y24.87%
EPS Next 2Y19.72%
EPS Next 3Y28.19%
EPS Next 5YN/A
Revenue 1Y (TTM)38.5%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%26.86%
Revenue Next Year29.45%
Revenue Next 2Y19.19%
Revenue Next 3Y17.11%
Revenue Next 5Y-8.3%
EBIT growth 1Y123.26%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year123.59%
EBIT Next 3Y46.23%
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.
Can you provide the valuation status for ROOT INC/OH -CLASS A?
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 valuation of ROOT INC/OH -CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ROOT INC/OH -CLASS A (ROOT) is 24.73 and the Price/Book (PB) ratio is 3.35.