ROOT INC/OH -CLASS A (ROOT) Stock Fundamental Analysis
NASDAQ:ROOT - US77664L2079 - Common Stock
91.01 USD
+2.92 (+3.31%)
91.4138 USD
+0.4 (+0.44%)
ROOT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. The financial health of ROOT is average, but there are quite some concerns on its profitability. ROOT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ROOT had positive earnings in the past year.
ROOT had a positive operating cash flow in the past year.
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 5.10%. This is amongst the best in the industry. ROOT outperforms 87.41% of its industry peers.
Looking at the Return On Equity, with a value of 22.72%, ROOT belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.21%, ROOT belongs to the best of the industry, outperforming 88.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 22.72% | ||
| ROIC | 6.21% |
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 Profit Margin (5.94%) which is comparable to the rest of the industry.
ROOT has a Operating Margin (8.83%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.83% | ||
| PM (TTM) | 5.94% | ||
| 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.
ROOT has a better debt/assets ratio than last year.
2.2 Solvency
ROOT has an Altman-Z score of 0.32. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
ROOT's Altman-Z score of 0.32 is fine compared to the rest of the industry. ROOT outperforms 70.63% of its industry peers.
ROOT has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.07, ROOT is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 0.55 indicates that ROOT is somewhat dependend on debt financing.
ROOT has a worse Debt to Equity ratio (0.55) than 72.03% 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 | 0.55 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.64
WACC9.69%
2.3 Liquidity
ROOT has a Current Ratio of 0.27. 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 0.27. This is in the better half of the industry: ROOT outperforms 69.93% of its industry peers.
A Quick Ratio of 0.27 indicates that ROOT may have some problems paying its short term obligations.
The Quick ratio of ROOT (0.27) is better than 69.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 187.28% over the past year.
ROOT shows a strong growth in Revenue. In the last year, the Revenue has grown by 59.76%.
The Revenue has been growing by 32.31% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)187.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%348.08%
Revenue 1Y (TTM)59.76%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%32.86%
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 34.96% on average per year.
The Revenue is expected to decrease by -8.30% on average over the next years.
EPS Next Y41.4%
EPS Next 2Y32.81%
EPS Next 3Y34.96%
EPS Next 5YN/A
Revenue Next Year29.19%
Revenue Next 2Y18.79%
Revenue Next 3Y16.61%
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
A Price/Earnings ratio of 18.17 indicates a rather expensive valuation of ROOT.
ROOT's Price/Earnings ratio is a bit more expensive when compared to the industry. ROOT is more expensive than 64.34% of the companies in the same industry.
When comparing the Price/Earnings ratio of ROOT to the average of the S&P500 Index (27.24), we can say ROOT is valued slightly cheaper.
A Price/Forward Earnings ratio of 30.17 indicates a quite expensive valuation of ROOT.
Based on the Price/Forward Earnings ratio, ROOT is valued a bit more expensive than 77.62% 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 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 30.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROOT is valued a bit cheaper than 64.34% of the companies in the same industry.
63.64% 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 | 7.62 | ||
| EV/EBITDA | 7.26 |
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 34.96% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y32.81%
EPS Next 3Y34.96%
5. Dividend
5.1 Amount
No dividends for ROOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
91.01
+2.92 (+3.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners55.95%
Inst Owner Change7.48%
Ins Owners3.65%
Ins Owner Change-0.11%
Market Cap1.41B
Analysts76.67
Price Target133.21 (46.37%)
Short Float %14.65%
Short Ratio3.03
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)168.86%
Min EPS beat(2)126.81%
Max EPS beat(2)210.91%
EPS beat(4)4
Avg EPS beat(4)239.74%
Min EPS beat(4)126.81%
Max EPS beat(4)386.52%
EPS beat(8)7
Avg EPS beat(8)142.06%
EPS beat(12)11
Avg EPS beat(12)101.21%
EPS beat(16)15
Avg EPS beat(16)81.89%
Revenue beat(2)2
Avg Revenue beat(2)7.66%
Min Revenue beat(2)5.98%
Max Revenue beat(2)9.34%
Revenue beat(4)4
Avg Revenue beat(4)8.81%
Min Revenue beat(4)5.98%
Max Revenue beat(4)10.07%
Revenue beat(8)8
Avg Revenue beat(8)20.33%
Revenue beat(12)11
Avg Revenue beat(12)14.99%
Revenue beat(16)14
Avg Revenue beat(16)18.06%
PT rev (1m)-9.93%
PT rev (3m)11.43%
EPS NQ rev (1m)-373.01%
EPS NQ rev (3m)-37.62%
EPS NY rev (1m)4.21%
EPS NY rev (3m)132.4%
Revenue NQ rev (1m)2.42%
Revenue NQ rev (3m)18.31%
Revenue NY rev (1m)3.24%
Revenue NY rev (3m)4.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.17 | ||
| Fwd PE | 30.17 | ||
| P/S | 1.03 | ||
| P/FCF | 7.62 | ||
| P/OCF | 7.12 | ||
| P/B | 3.94 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 7.26 |
EPS(TTM)5.01
EY5.5%
EPS(NY)3.02
Fwd EY3.31%
FCF(TTM)11.95
FCFY13.13%
OCF(TTM)12.78
OCFY14.04%
SpS88.33
BVpS23.07
TBVpS23.07
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 22.72% | ||
| ROCE | 7.87% | ||
| ROIC | 6.21% | ||
| ROICexc | 10.69% | ||
| ROICexgc | 14.27% | ||
| OM | 8.83% | ||
| PM (TTM) | 5.94% | ||
| GM | N/A | ||
| FCFM | 13.53% |
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 Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 106.67% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 148.98% | ||
| Profit Quality | 227.9% | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.32 |
F-Score7
WACC9.69%
ROIC/WACC0.64
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)187.28%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%348.08%
EPS Next Y41.4%
EPS Next 2Y32.81%
EPS Next 3Y34.96%
EPS Next 5YN/A
Revenue 1Y (TTM)59.76%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%32.86%
Revenue Next Year29.19%
Revenue Next 2Y18.79%
Revenue Next 3Y16.61%
Revenue Next 5Y-8.3%
EBIT growth 1Y533.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year122.46%
EBIT Next 3Y46.88%
EBIT Next 5Y36.92%
FCF growth 1Y188.41%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y198.7%
OCF growth 3YN/A
OCF growth 5YN/A