73.88 USD
-3.19 (-4.14%)
74.5 USD
+0.62 (+0.84%)
Taking everything into account, ROOT scores 3 out of 10 in our fundamental rating. ROOT was compared to 147 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.
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.
ROOT had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
ROOT has a better Return On Assets (3.28%) than 66.67% of its industry peers.
ROOT has a better Return On Equity (14.30%) than 66.67% of its industry peers.
ROOT's Return On Invested Capital of 4.32% is fine compared to the rest of the industry. ROOT outperforms 71.43% 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
ROOT has a worse Profit Margin (3.73%) than 72.79% of its industry peers.
ROOT's Operating Margin of 5.97% is on the low side compared to the rest of the industry. ROOT is outperformed by 72.11% 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.
The number of shares outstanding for ROOT has been increased compared to 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 0.18. 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 0.18, ROOT is in the better half of the industry, outperforming 69.39% 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.
Looking at the Debt to FCF ratio, with a value of 1.03, ROOT is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
ROOT has a Debt/Equity ratio of 0.52. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
ROOT's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. ROOT is outperformed by 73.47% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.03 | ||
| Altman-Z | 0.18 |
ROIC/WACC0.44
WACC9.72%
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 Current ratio of 0.19. This is in the better half of the industry: ROOT outperforms 68.03% 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 68.03% of the companies in the same industry.
| 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%.
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
Based on estimates for the next years, ROOT will show a very strong growth in Earnings Per Share. The EPS will grow by 26.67% on average per year.
The Revenue is expected to decrease by -8.30% on average over the next years.
EPS Next Y1.45%
EPS Next 2Y12.03%
EPS Next 3Y26.67%
EPS Next 5YN/A
Revenue Next Year32.04%
Revenue Next 2Y18.24%
Revenue Next 3Y15.47%
Revenue Next 5Y-8.3%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.32, 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 72.79% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.38, ROOT is valued at the same level.
With a Price/Forward Earnings ratio of 34.43, ROOT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROOT indicates a slightly more expensive valuation: ROOT is more expensive than 79.59% of the companies listed in the same industry.
ROOT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 34.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 63.27% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than the industry average as 63.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.99 | ||
| EV/EBITDA | 7.55 |
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.
ROOT's earnings are expected to grow with 26.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)15.38
PEG (5Y)N/A
EPS Next 2Y12.03%
EPS Next 3Y26.67%
5. Dividend
5.1 Amount
ROOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
73.88
-3.19 (-4.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners63.78%
Inst Owner Change1.17%
Ins Owners3.09%
Ins Owner Change-0.19%
Market Cap1.15B
Revenue(TTM)1.45B
Net Income(TTM)53.90M
Analysts76.67
Price Target123.01 (66.5%)
Short Float %18.57%
Short Ratio4.92
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)-3.05%
PT rev (3m)-7.66%
EPS NQ rev (1m)-529.28%
EPS NQ rev (3m)-196.82%
EPS NY rev (1m)-18.75%
EPS NY rev (3m)-28.25%
Revenue NQ rev (1m)2.58%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)2%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 34.43 | ||
| P/S | 0.79 | ||
| P/FCF | 5.99 | ||
| P/OCF | 5.57 | ||
| P/B | 3.04 | ||
| P/tB | 3.04 | ||
| EV/EBITDA | 7.55 |
EPS(TTM)3.31
EY4.48%
EPS(NY)2.15
Fwd EY2.9%
FCF(TTM)12.33
FCFY16.69%
OCF(TTM)13.26
OCFY17.94%
SpS93.28
BVpS24.31
TBVpS24.31
PEG (NY)15.38
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 | 0.18 |
F-Score7
WACC9.72%
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 3Y26.67%
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 3Y45.81%
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 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 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 22.32 and the Price/Book (PB) ratio is 3.04.