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

NASDAQ:ROOT • US77664L2079

51.88 USD
-5.84 (-10.12%)
At close: Feb 27, 2026
51.6244 USD
-0.26 (-0.49%)
After Hours: 2/27/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

ROOT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 149 industry peers in the Insurance industry. While ROOT seems to be doing ok healthwise, there are quite some concerns on its profitability. ROOT is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

2

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.
  • The reported net income has been mixed in the past 5 years: ROOT reported negative net income in multiple years.
  • The reported operating cash flow has been mixed in the past 5 years: ROOT reported negative operating cash flow in multiple years.
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 2025 0 200M -200M -400M

1.2 Ratios

  • The Return On Assets of ROOT (2.28%) is comparable to the rest of the industry.
  • ROOT has a Return On Equity of 9.61%. This is comparable to the rest of the industry: ROOT outperforms 43.33% of its industry peers.
  • With a Return On Invested Capital value of 3.07%, ROOT perfoms like the industry average, outperforming 58.67% of the companies in the same industry.
Industry RankSector Rank
ROA 2.28%
ROE 9.61%
ROIC 3.07%
ROA(3y)-2.23%
ROA(5y)-13.77%
ROE(3y)-11.39%
ROE(5y)-38.21%
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 2025 0 -50 -100 -150

1.3 Margins

  • ROOT has a Profit Margin of 2.51%. This is in the lower half of the industry: ROOT underperforms 74.00% of its industry peers.
  • With a Operating Margin value of 4.08%, ROOT is not doing good in the industry: 80.67% of the companies in the same industry are doing better.
Industry RankSector Rank
OM 4.08%
PM (TTM) 2.51%
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 2025 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.
  • 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.
ROOT Yearly Shares OutstandingROOT Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 500M 1B 1.5B

2.2 Solvency

  • Based on the Altman-Z score of -0.02, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
  • ROOT has a better Altman-Z score (-0.02) than 68.00% of its industry peers.
  • The Debt to FCF ratio of ROOT is 1.02, which is an excellent value as it means it would take ROOT, only 1.02 years of fcf income to pay off all of its debts.
  • ROOT has a Debt to FCF ratio of 1.02. This is in the better half of the industry: ROOT outperforms 70.00% of its industry peers.
  • ROOT has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.50, ROOT is not doing good in the industry: 72.00% 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 RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.02
Altman-Z -0.02
ROIC/WACC0.31
WACC9.92%
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 2025 0 500M 1B

2.3 Liquidity

  • A Current Ratio of 0.08 indicates that ROOT may have some problems paying its short term obligations.
  • ROOT has a Current ratio of 0.08. This is in the better half of the industry: ROOT outperforms 64.67% of its industry peers.
  • ROOT has a Quick Ratio of 0.08. This is a bad value and indicates that ROOT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of ROOT (0.08) is better than 64.67% of its industry peers.
Industry RankSector Rank
Current Ratio 0.08
Quick Ratio 0.08
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 2025 50M 100M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • ROOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.67%, which is quite impressive.
  • Looking at the last year, ROOT shows a very strong growth in Revenue. The Revenue has grown by 28.95%.
  • Measured over the past years, ROOT shows a very strong growth in Revenue. The Revenue has been growing by 34.33% on average per year.
EPS 1Y (TTM)35.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-76.15%
Revenue 1Y (TTM)28.95%
Revenue growth 3Y69.63%
Revenue growth 5Y34.33%
Sales Q2Q%21.52%

3.2 Future

  • ROOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.64% yearly.
  • ROOT is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -11.60% yearly.
EPS Next Y-4.31%
EPS Next 2Y21.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.89%
Revenue Next 2Y7.99%
Revenue Next 3Y9.91%
Revenue Next 5Y-11.6%

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 2B
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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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 22.36, which indicates a rather expensive current valuation of ROOT.
  • Based on the Price/Earnings ratio, ROOT is valued a bit more expensive than the industry average as 72.67% of the companies are valued more cheaply.
  • ROOT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.07.
  • Based on the Price/Forward Earnings ratio of 23.37, the valuation of ROOT can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, ROOT is valued a bit more expensive than the industry average as 74.67% of the companies are valued more cheaply.
  • ROOT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 28.05, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 22.36
Fwd PE 23.37
ROOT Price Earnings VS Forward Price EarningsROOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ROOT is valued cheaply inside the industry as 82.00% of the companies are valued more expensively.
  • 76.00% of the companies in the same industry are more expensive than ROOT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.18
EV/EBITDA 4.51
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 21.64% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y21.64%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • ROOT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ROOT INC/OH -CLASS A

NASDAQ:ROOT (2/27/2026, 8:00:02 PM)

After market: 51.6244 -0.26 (-0.49%)

51.88

-5.84 (-10.12%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-25
Earnings (Next)05-05
Inst Owners63.81%
Inst Owner Change-3.66%
Ins Owners3%
Ins Owner Change1.41%
Market Cap804.66M
Revenue(TTM)1.52B
Net Income(TTM)38.10M
Analysts76.67
Price Target113.83 (119.41%)
Short Float %18.83%
Short Ratio8.74
Dividend
Industry RankSector 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)114.58%
Min EPS beat(2)30.48%
Max EPS beat(2)198.68%
EPS beat(4)4
Avg EPS beat(4)141.72%
Min EPS beat(4)30.48%
Max EPS beat(4)210.91%
EPS beat(8)8
Avg EPS beat(8)166.76%
EPS beat(12)11
Avg EPS beat(12)117.02%
EPS beat(16)15
Avg EPS beat(16)93.26%
Revenue beat(2)2
Avg Revenue beat(2)2.68%
Min Revenue beat(2)1.64%
Max Revenue beat(2)3.72%
Revenue beat(4)4
Avg Revenue beat(4)5.17%
Min Revenue beat(4)1.64%
Max Revenue beat(4)9.34%
Revenue beat(8)8
Avg Revenue beat(8)8.71%
Revenue beat(12)12
Avg Revenue beat(12)15.49%
Revenue beat(16)14
Avg Revenue beat(16)11.81%
PT rev (1m)-3.63%
PT rev (3m)-7.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.58%
Valuation
Industry RankSector Rank
PE 22.36
Fwd PE 23.37
P/S 0.53
P/FCF 4.18
P/OCF 3.9
P/B 2.03
P/tB 2.03
EV/EBITDA 4.51
EPS(TTM)2.32
EY4.47%
EPS(NY)2.22
Fwd EY4.28%
FCF(TTM)12.4
FCFY23.91%
OCF(TTM)13.31
OCFY25.66%
SpS97.81
BVpS25.55
TBVpS25.55
PEG (NY)N/A
PEG (5Y)N/A
Graham Number36.52
Profitability
Industry RankSector Rank
ROA 2.28%
ROE 9.61%
ROCE 3.89%
ROIC 3.07%
ROICexc 5.3%
ROICexgc 6.85%
OM 4.08%
PM (TTM) 2.51%
GM N/A
FCFM 12.68%
ROA(3y)-2.23%
ROA(5y)-13.77%
ROE(3y)-11.39%
ROE(5y)-38.21%
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 Turnover0.91
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.02
Debt/EBITDA 2.67
Cap/Depr 119.49%
Cap/Sales 0.93%
Interest Coverage 2.99
Cash Conversion 280.19%
Profit Quality 504.99%
Current Ratio 0.08
Quick Ratio 0.08
Altman-Z -0.02
F-Score7
WACC9.92%
ROIC/WACC0.31
Cap/Depr(3y)91.1%
Cap/Depr(5y)82.79%
Cap/Sales(3y)1.33%
Cap/Sales(5y)2.1%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-76.15%
EPS Next Y-4.31%
EPS Next 2Y21.64%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)28.95%
Revenue growth 3Y69.63%
Revenue growth 5Y34.33%
Sales Q2Q%21.52%
Revenue Next Year5.89%
Revenue Next 2Y7.99%
Revenue Next 3Y9.91%
Revenue Next 5Y-11.6%
EBIT growth 1Y-26.48%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year142.34%
EBIT Next 3Y50.55%
EBIT Next 5Y43.24%
FCF growth 1Y4.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.52%
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 3 / 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 decline by -4.31% in the next year.