81.02 USD
-3.56 (-4.21%)
81.02 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to ROOT. 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
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.
In the past 5 years ROOT reported 4 times negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.28%, ROOT is in the better half of the industry, outperforming 65.99% of the companies in the same industry.
With a decent Return On Equity value of 14.30%, ROOT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
ROOT has a Return On Invested Capital of 4.32%. This is in the better half 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
The Profit Margin of ROOT (3.73%) is worse than 74.83% of its industry peers.
ROOT has a worse Operating Margin (5.97%) than 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROOT is destroying value.
Compared to 1 year ago, ROOT has more shares outstanding
The number of shares outstanding for ROOT has been increased compared to 5 years ago.
ROOT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.24, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.24, ROOT is doing good in the industry, outperforming 67.35% of the companies in the same industry.
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.
ROOT has a Debt to FCF ratio of 1.03. This is in the better half of the industry: ROOT outperforms 68.71% of its industry peers.
ROOT has a Debt/Equity ratio of 0.52. This is a neutral value indicating 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: 73.47% 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 | 0.24 |
ROIC/WACC0.45
WACC9.63%
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 68.03% of its industry peers.
A Quick Ratio of 0.19 indicates that ROOT may have some problems paying its short term obligations.
ROOT's Quick ratio of 0.19 is fine compared to the rest of the industry. ROOT outperforms 68.03% 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 26.67% on average per year.
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 3Y26.67%
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
A Price/Earnings ratio of 24.48 indicates a rather expensive valuation of ROOT.
Based on the Price/Earnings ratio, ROOT is valued a bit more expensive than 76.87% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. ROOT is around the same levels.
A Price/Forward Earnings ratio of 37.75 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 79.59% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of ROOT to the average of the S&P500 Index (23.96), we can say ROOT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.48 | ||
| Fwd PE | 37.75 |
4.2 Price Multiples
ROOT's Enterprise Value to EBITDA is on the same level as the industry average.
ROOT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.57 | ||
| EV/EBITDA | 8.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as ROOT's earnings are expected to grow with 26.67% in the coming years.
PEG (NY)16.87
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 | N/A |
81.02
-3.56 (-4.21%)
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-0.13%
Market Cap1.26B
Revenue(TTM)1.45B
Net Income(TTM)53.90M
Analysts76.67
Price Target123.01 (51.83%)
Short Float %18.77%
Short Ratio4.64
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)-3.05%
PT rev (3m)-7.66%
EPS NQ rev (1m)-529.28%
EPS NQ rev (3m)-162.57%
EPS NY rev (1m)-18.75%
EPS NY rev (3m)-28.25%
Revenue NQ rev (1m)2.58%
Revenue NQ rev (3m)2.85%
Revenue NY rev (1m)2%
Revenue NY rev (3m)2.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.48 | ||
| Fwd PE | 37.75 | ||
| P/S | 0.87 | ||
| P/FCF | 6.57 | ||
| P/OCF | 6.11 | ||
| P/B | 3.33 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 8.74 |
EPS(TTM)3.31
EY4.09%
EPS(NY)2.15
Fwd EY2.65%
FCF(TTM)12.33
FCFY15.22%
OCF(TTM)13.26
OCFY16.36%
SpS93.28
BVpS24.31
TBVpS24.31
PEG (NY)16.87
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 | 0.24 |
F-Score7
WACC9.63%
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 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 24.48 and the Price/Book (PB) ratio is 3.33.