ROOT INC/OH -CLASS A (ROOT) Fundamental Analysis & Valuation

NASDAQ:ROOT • US77664L2079

Current stock price

43.9 USD
-4 (-8.35%)
At close:
44 USD
+0.1 (+0.23%)
After Hours:

This ROOT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. ROOT Profitability Analysis

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 multiple years ROOT reported negative net income over the last 5 years.
  • In multiple years ROOT reported negative operating cash flow during the last 5 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

  • ROOT has a Return On Assets (2.28%) which is in line with its industry peers.
  • ROOT has a Return On Equity (9.61%) which is in line with its industry peers.
  • ROOT has a Return On Invested Capital (3.07%) which is comparable to the rest of the 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

  • With a Profit Margin value of 2.51%, ROOT is not doing good in the industry: 77.03% of the companies in the same industry are doing better.
  • ROOT has a Operating Margin of 4.08%. This is amonst the worse of the industry: ROOT underperforms 83.78% of its industry peers.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. ROOT Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
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

  • ROOT has an Altman-Z score of -0.08. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
  • ROOT has a better Altman-Z score (-0.08) than 67.57% 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's Debt to FCF ratio of 1.02 is fine compared to the rest of the industry. ROOT outperforms 66.22% of its industry peers.
  • A Debt/Equity ratio of 0.50 indicates that ROOT is not too dependend on debt financing.
  • ROOT's Debt to Equity ratio of 0.50 is on the low side compared to the rest of the industry. ROOT is outperformed by 74.32% of its industry peers.
  • 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 -0.08
ROIC/WACC0.34
WACC8.91%
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

  • ROOT has a Current 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.
  • With a decent Current ratio value of 0.08, ROOT is doing good in the industry, outperforming 64.19% of the companies in the same industry.
  • A Quick Ratio of 0.08 indicates that ROOT may have some problems paying its short term obligations.
  • ROOT has a Quick ratio of 0.08. This is in the better half of the industry: ROOT outperforms 64.19% 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. ROOT Growth Analysis

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%.
  • ROOT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 34.33% yearly.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.69% yearly.
  • The Revenue is expected to decrease by -11.60% on average over the next years. This is quite bad
EPS Next Y-13.8%
EPS Next 2Y14.9%
EPS Next 3Y9.69%
EPS Next 5YN/A
Revenue Next Year10.27%
Revenue Next 2Y11.77%
Revenue Next 3Y10.52%
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 2028 0 -20 -40 -60

More info and screens

Find the best growth stocksShow best growing peers

2

4. ROOT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 18.92, ROOT is valued on the expensive side.
  • 77.70% of the companies in the same industry are cheaper than ROOT, based on the Price/Earnings ratio.
  • ROOT is valuated rather cheaply when we compare the Price/Earnings ratio to 24.88, which is the current average of the S&P500 Index.
  • ROOT is valuated rather expensively with a Price/Forward Earnings ratio of 21.95.
  • 79.05% of the companies in the same industry are cheaper than ROOT, based on the Price/Forward Earnings ratio.
  • ROOT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.92
Fwd PE 21.95
ROOT Price Earnings VS Forward Price EarningsROOT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • 79.73% of the companies in the same industry are more expensive than ROOT, based on the Enterprise Value to EBITDA ratio.
  • ROOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROOT is cheaper than 70.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF 3.55
EV/EBITDA 2.85
ROOT Per share dataROOT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.9%
EPS Next 3Y9.69%

More info and screens

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

0

5. ROOT Dividend Analysis

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 Fundamentals: All Metrics, Ratios and Statistics

ROOT INC/OH -CLASS A

NASDAQ:ROOT (3/27/2026, 8:00:01 PM)

After market: 44 +0.1 (+0.23%)

43.9

-4 (-8.35%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-25
Earnings (Next)05-05
Inst Owners68.53%
Inst Owner Change-3.66%
Ins Owners5.26%
Ins Owner Change1.5%
Market Cap682.64M
Revenue(TTM)1.52B
Net Income(TTM)38.10M
Analysts76.67
Price Target91.8 (109.11%)
Short Float %19.99%
Short Ratio7.21
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)-19.35%
PT rev (3m)-24.24%
EPS NQ rev (1m)19.1%
EPS NQ rev (3m)21.2%
EPS NY rev (1m)-9.92%
EPS NY rev (3m)-6.81%
Revenue NQ rev (1m)4.07%
Revenue NQ rev (3m)4.07%
Revenue NY rev (1m)4.14%
Revenue NY rev (3m)4.14%
Valuation
Industry RankSector Rank
PE 18.92
Fwd PE 21.95
P/S 0.45
P/FCF 3.55
P/OCF 3.31
P/B 1.72
P/tB 1.72
EV/EBITDA 2.85
EPS(TTM)2.32
EY5.28%
EPS(NY)2
Fwd EY4.56%
FCF(TTM)12.37
FCFY28.18%
OCF(TTM)13.28
OCFY30.25%
SpS97.56
BVpS25.49
TBVpS25.49
PEG (NY)N/A
PEG (5Y)N/A
Graham Number36.47
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 -0.08
F-Score7
WACC8.91%
ROIC/WACC0.34
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-13.8%
EPS Next 2Y14.9%
EPS Next 3Y9.69%
EPS Next 5YN/A
Revenue 1Y (TTM)28.95%
Revenue growth 3Y69.63%
Revenue growth 5Y34.33%
Sales Q2Q%21.52%
Revenue Next Year10.27%
Revenue Next 2Y11.77%
Revenue Next 3Y10.52%
Revenue Next 5Y-11.6%
EBIT growth 1Y-26.48%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year126.25%
EBIT Next 3Y54.69%
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 Fundamental Analysis 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 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 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 -13.8% in the next year.