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

NASDAQ:ROOT • US77664L2079

Current stock price

54.48 USD
-1.43 (-2.56%)
At close:
55.2422 USD
+0.76 (+1.4%)
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

  • In the past year ROOT was profitable.
  • 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

  • Looking at the Return On Assets, with a value of 2.28%, ROOT is in line with its industry, outperforming 49.66% of the companies in the same industry.
  • With a Return On Equity value of 9.61%, ROOT perfoms like the industry average, outperforming 43.54% of the companies in the same industry.
  • ROOT has a Return On Invested Capital of 3.07%. This is comparable to the rest of the industry: ROOT outperforms 55.10% of its industry peers.
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

  • The Profit Margin of ROOT (2.51%) is worse than 78.91% of its industry peers.
  • With a Operating Margin value of 4.08%, ROOT is not doing good in the industry: 82.99% 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. 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.
  • ROOT has more shares outstanding than it did 1 year ago.
  • ROOT has more shares outstanding than it did 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 0.01, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.01, ROOT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • ROOT has a debt to FCF ratio of 1.02. This is a very positive value and a sign of high solvency as it would only need 1.02 years to pay back of all of its debts.
  • ROOT has a better Debt to FCF ratio (1.02) than 65.99% of its industry peers.
  • A Debt/Equity ratio of 0.50 indicates that ROOT is not too dependend on debt financing.
  • The Debt to Equity ratio of ROOT (0.50) is worse than 74.83% of its industry peers.
  • Although ROOT's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.02
Altman-Z 0.01
ROIC/WACC0.35
WACC8.86%
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.
  • With a decent Current ratio value of 0.08, ROOT is doing good in the industry, outperforming 63.95% 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 63.95% 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

  • The Earnings Per Share has grown by an impressive 35.67% over the past year.
  • ROOT shows a strong growth in Revenue. In the last year, 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

  • The Earnings Per Share is expected to grow by 9.69% on average over the next years. This is quite good.
  • 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-9.6%
EPS Next 2Y14.92%
EPS Next 3Y9.69%
EPS Next 5YN/A
Revenue Next Year10.86%
Revenue Next 2Y11.83%
Revenue Next 3Y10.2%
Revenue Next 5Y-11.6%

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.
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

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Find the best growth stocksShow best growing peers

2

4. ROOT Valuation Analysis

4.1 Price/Earnings Ratio

  • ROOT is valuated rather expensively with a Price/Earnings ratio of 23.48.
  • Compared to the rest of the industry, the Price/Earnings ratio of ROOT indicates a rather expensive valuation: ROOT more expensive than 80.95% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.91, ROOT is valued at the same level.
  • The Price/Forward Earnings ratio is 25.98, which means the current valuation is very expensive for ROOT.
  • ROOT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. ROOT is more expensive than 78.91% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.99. ROOT is around the same levels.
Industry RankSector Rank
PE 23.48
Fwd PE 25.98
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 a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.4
EV/EBITDA 5.39
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 2Y14.92%
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 (4/28/2026, 8:00:02 PM)

After market: 55.2422 +0.76 (+1.4%)

54.48

-1.43 (-2.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-25
Earnings (Next)05-06
Inst Owners68.67%
Inst Owner Change-0.26%
Ins Owners5.2%
Ins Owner Change1.57%
Market Cap847.16M
Revenue(TTM)1.52B
Net Income(TTM)38.10M
Analysts76.67
Price Target86.9 (59.51%)
Short Float %16.31%
Short Ratio5.85
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)-23.66%
PT rev (3m)-26.42%
EPS NQ rev (1m)1.89%
EPS NQ rev (3m)21.35%
EPS NY rev (1m)4.87%
EPS NY rev (3m)-5.53%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)4.43%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)4.69%
Valuation
Industry RankSector Rank
PE 23.48
Fwd PE 25.98
P/S 0.56
P/FCF 4.4
P/OCF 4.1
P/B 2.14
P/tB 2.14
EV/EBITDA 5.39
EPS(TTM)2.32
EY4.26%
EPS(NY)2.1
Fwd EY3.85%
FCF(TTM)12.37
FCFY22.71%
OCF(TTM)13.28
OCFY24.38%
SpS97.56
BVpS25.49
TBVpS25.49
PEG (NY)N/A
PEG (5Y)N/A
Graham Number36.474 (-33.05%)
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 0.01
F-Score7
WACC8.86%
ROIC/WACC0.35
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-9.6%
EPS Next 2Y14.92%
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 Year10.86%
Revenue Next 2Y11.83%
Revenue Next 3Y10.2%
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 for ROOT stock?

ChartMill assigns a valuation rating of 2 / 10 to ROOT INC/OH -CLASS A (ROOT). This can be considered as Overvalued.


Can you provide the profitability details for ROOT INC/OH -CLASS A?

ROOT INC/OH -CLASS A (ROOT) has a profitability rating of 2 / 10.


Can you provide the PE and PB ratios for ROOT stock?

The Price/Earnings (PE) ratio for ROOT INC/OH -CLASS A (ROOT) is 23.48 and the Price/Book (PB) ratio is 2.14.


What is the financial health of ROOT INC/OH -CLASS A (ROOT) stock?

The financial health rating of ROOT INC/OH -CLASS A (ROOT) is 4 / 10.