74.26 USD
-5.34 (-6.71%)
74.5 USD
+0.24 (+0.32%)
Taking everything into account, ROOT scores 3 out of 10 in our fundamental rating. ROOT was compared to 146 industry peers in the Insurance industry. While ROOT seems to be doing ok healthwise, there are quite some concerns on its profitability. ROOT is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- In the past 5 years ROOT reported 4 times negative net income.
- ROOT had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
- ROOT has a Return On Assets of 3.28%. This is in the better half of the industry: ROOT outperforms 67.12% of its industry peers.
- ROOT's Return On Equity of 14.30% is fine compared to the rest of the industry. ROOT outperforms 67.12% of its industry peers.
- The Return On Invested Capital of ROOT (4.32%) is better than 73.29% of its industry peers.
| 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
- Looking at the Profit Margin, with a value of 3.73%, ROOT is doing worse than 71.23% of the companies in the same industry.
- ROOT's Operating Margin of 5.97% is on the low side compared to the rest of the industry. ROOT is outperformed by 70.55% 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
- 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.
- Compared to 5 years ago, ROOT has more shares outstanding
- Compared to 1 year ago, ROOT has an improved debt to assets ratio.
2.2 Solvency
- ROOT has an Altman-Z score of 0.16. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
- ROOT has a better Altman-Z score (0.16) than 71.23% of its industry peers.
- 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.
- ROOT's Debt to FCF ratio of 1.03 is fine compared to the rest of the industry. ROOT outperforms 69.18% 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 73.97% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 0.16 |
ROIC/WACC0.44
WACC9.77%
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 69.86% of its industry peers.
- A Quick Ratio of 0.19 indicates that ROOT may have some problems paying its short term obligations.
- With a decent Quick ratio value of 0.19, ROOT is doing good in the industry, outperforming 69.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.19 | ||
| Quick Ratio | 0.19 |
3. Growth
3.1 Past
- ROOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 369.11%, which is quite impressive.
- ROOT shows a strong growth in Revenue. In the last year, 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
- ROOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.15% yearly.
- ROOT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.30% yearly.
EPS Next Y1.45%
EPS Next 2Y12.03%
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.44, ROOT is valued on the expensive side.
- Based on the Price/Earnings ratio, ROOT is valued a bit more expensive than the industry average as 71.23% of the companies are valued more cheaply.
- ROOT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 34.60, the valuation of ROOT can be described as expensive.
- Based on the Price/Forward Earnings ratio, ROOT is valued a bit more expensive than 77.40% of the companies in the same industry.
- ROOT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 34.6 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ROOT is valued a bit cheaper than the industry average as 65.75% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than the industry average as 65.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.02 | ||
| EV/EBITDA | 7.1 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- ROOT's earnings are expected to grow with 26.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)15.46
PEG (5Y)N/A
EPS Next 2Y12.03%
EPS Next 3Y26.15%
5. Dividend
5.1 Amount
- No dividends for ROOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
74.26
-5.34 (-6.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners63.81%
Inst Owner Change0.26%
Ins Owners3%
Ins Owner Change-0.17%
Market Cap1.15B
Revenue(TTM)1.45B
Net Income(TTM)53.90M
Analysts76.67
Price Target121.18 (63.18%)
Short Float %18.16%
Short Ratio5.63
Dividend
| Industry Rank | Sector 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)-1.49%
PT rev (3m)-9.04%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-196.82%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.44 | ||
| Fwd PE | 34.6 | ||
| P/S | 0.8 | ||
| P/FCF | 6.02 | ||
| P/OCF | 5.6 | ||
| P/B | 3.06 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 7.1 |
EPS(TTM)3.31
EY4.46%
EPS(NY)2.15
Fwd EY2.89%
FCF(TTM)12.33
FCFY16.61%
OCF(TTM)13.26
OCFY17.85%
SpS93.28
BVpS24.31
TBVpS24.31
PEG (NY)15.46
PEG (5Y)N/A
Graham Number42.55
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 | 0.16 |
F-Score7
WACC9.77%
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 Y1.45%
EPS Next 2Y12.03%
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 3Y45.36%
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 2 / 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 1.45% in the next year.