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

NASDAQ:ROOT - Nasdaq - US77664L2079 - Common Stock - Currency: USD

137.75  +1.22 (+0.89%)

After market: 137.75 0 (0%)

Fundamental Rating

3

Overall ROOT gets a fundamental rating of 3 out of 10. We evaluated ROOT against 143 industry peers in the Insurance industry. While ROOT seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, ROOT is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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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.
In the past 5 years ROOT reported 4 times negative net income.
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 2.95% is fine compared to the rest of the industry. ROOT outperforms 67.83% of its industry peers.
ROOT has a better Return On Equity (13.71%) than 65.03% of its industry peers.
The Return On Invested Capital of ROOT (5.29%) is better than 83.92% of its industry peers.
Industry RankSector Rank
ROA 2.95%
ROE 13.71%
ROIC 5.29%
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

The Profit Margin of ROOT (3.67%) is worse than 74.83% of its industry peers.
With a Operating Margin value of 8.06%, ROOT is not doing good in the industry: 60.14% of the companies in the same industry are doing better.
Industry RankSector Rank
OM 8.06%
PM (TTM) 3.67%
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

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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.
ROOT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ROOT has more shares outstanding
The debt/assets ratio for ROOT has been reduced compared to a year ago.
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

ROOT has an Altman-Z score of 0.53. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.53, ROOT is in the better half of the industry, outperforming 72.03% of the companies in the same industry.
ROOT has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.00, ROOT is doing good in the industry, outperforming 64.34% of the companies in the same industry.
ROOT has a Debt/Equity ratio of 0.58. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
ROOT's Debt to Equity ratio of 0.58 is on the low side compared to the rest of the industry. ROOT is outperformed by 74.83% of its industry peers.
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 RankSector Rank
Debt/Equity 0.58
Debt/FCF 1
Altman-Z 0.53
ROIC/WACC0.55
WACC9.63%
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 0.37 indicates that ROOT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.37, ROOT is in the better half of the industry, outperforming 72.03% of the companies in the same industry.
ROOT has a Quick Ratio of 0.37. This is a bad value and indicates that ROOT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.37, ROOT is doing good in the industry, outperforming 72.03% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.37
Quick Ratio 0.37
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

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 141.18% over the past year.
Looking at the last year, ROOT shows a very strong growth in Revenue. The Revenue has grown by 98.66%.
The Revenue has been growing by 32.31% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)141.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%354.76%
Revenue 1Y (TTM)98.66%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%37.07%

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 25.01% on average per year.
The Revenue is expected to decrease by -8.30% on average over the next years.
EPS Next Y-39.16%
EPS Next 2Y4.65%
EPS Next 3Y25.01%
EPS Next 5YN/A
Revenue Next Year24.09%
Revenue Next 2Y17.07%
Revenue Next 3Y16.46%
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
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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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 43.05, the valuation of ROOT can be described as expensive.
Based on the Price/Earnings ratio, ROOT is valued more expensive than 81.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of ROOT to the average of the S&P500 Index (26.60), we can say ROOT is valued expensively.
Based on the Price/Forward Earnings ratio of 73.56, the valuation of ROOT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROOT indicates a rather expensive valuation: ROOT more expensive than 81.12% of the companies listed in the same industry.
ROOT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 43.05
Fwd PE 73.56
ROOT Price Earnings VS Forward Price EarningsROOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as ROOT.
ROOT's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 10.77
EV/EBITDA 14.47
ROOT Per share dataROOT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

A more expensive valuation may be justified as ROOT's earnings are expected to grow with 25.01% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.65%
EPS Next 3Y25.01%

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0

5. Dividend

5.1 Amount

ROOT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ROOT INC/OH -CLASS A

NASDAQ:ROOT (5/20/2025, 5:48:32 PM)

After market: 137.75 0 (0%)

137.75

+1.22 (+0.89%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners68.53%
Inst Owner Change4.05%
Ins Owners3.86%
Ins Owner Change-0.09%
Market Cap2.12B
Analysts76.67
Price Target119.54 (-13.22%)
Short Float %13.46%
Short Ratio2.05
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)298.71%
Min EPS beat(2)210.91%
Max EPS beat(2)386.52%
EPS beat(4)4
Avg EPS beat(4)223.67%
Min EPS beat(4)62.56%
Max EPS beat(4)386.52%
EPS beat(8)7
Avg EPS beat(8)128.38%
EPS beat(12)11
Avg EPS beat(12)91.69%
EPS beat(16)14
Avg EPS beat(16)71.39%
Revenue beat(2)2
Avg Revenue beat(2)9.71%
Min Revenue beat(2)9.34%
Max Revenue beat(2)10.07%
Revenue beat(4)4
Avg Revenue beat(4)9%
Min Revenue beat(4)6.71%
Max Revenue beat(4)10.07%
Revenue beat(8)8
Avg Revenue beat(8)20.93%
Revenue beat(12)10
Avg Revenue beat(12)14.03%
Revenue beat(16)14
Avg Revenue beat(16)18.7%
PT rev (1m)21.33%
PT rev (3m)48.67%
EPS NQ rev (1m)215.44%
EPS NQ rev (3m)187.25%
EPS NY rev (1m)356.28%
EPS NY rev (3m)477.32%
Revenue NQ rev (1m)7.85%
Revenue NQ rev (3m)16.21%
Revenue NY rev (1m)8.78%
Revenue NY rev (3m)16.55%
Valuation
Industry RankSector Rank
PE 43.05
Fwd PE 73.56
P/S 1.66
P/FCF 10.77
P/OCF 10.17
P/B 6.21
P/tB 6.21
EV/EBITDA 14.47
EPS(TTM)3.2
EY2.32%
EPS(NY)1.87
Fwd EY1.36%
FCF(TTM)12.79
FCFY9.29%
OCF(TTM)13.54
OCFY9.83%
SpS82.75
BVpS22.18
TBVpS22.18
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.95%
ROE 13.71%
ROCE 6.7%
ROIC 5.29%
ROICexc 8.8%
ROICexgc 11.77%
OM 8.06%
PM (TTM) 3.67%
GM N/A
FCFM 15.46%
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 Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 1
Debt/EBITDA 1.69
Cap/Depr 82.14%
Cap/Sales 0.9%
Interest Coverage 250
Cash Conversion 178.69%
Profit Quality 420.77%
Current Ratio 0.37
Quick Ratio 0.37
Altman-Z 0.53
F-Score7
WACC9.63%
ROIC/WACC0.55
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)141.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%354.76%
EPS Next Y-39.16%
EPS Next 2Y4.65%
EPS Next 3Y25.01%
EPS Next 5YN/A
Revenue 1Y (TTM)98.66%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%37.07%
Revenue Next Year24.09%
Revenue Next 2Y17.07%
Revenue Next 3Y16.46%
Revenue Next 5Y-8.3%
EBIT growth 1Y269.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year33.98%
EBIT Next 3Y39.28%
EBIT Next 5Y37.65%
FCF growth 1Y178.07%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y185.56%
OCF growth 3YN/A
OCF growth 5YN/A