ROOT INC/OH -CLASS A (ROOT) Stock Fundamental Analysis
USA - NASDAQ:ROOT - US77664L2079 - Common Stock
88.135 USD
+8.95 (+11.31%)
ROOT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. ROOT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ROOT is not valued too expensively and it also shows 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.
ROOT had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.10%, ROOT belongs to the best of the industry, outperforming 85.62% of the companies in the same industry.
Looking at the Return On Equity, with a value of 22.72%, ROOT belongs to the top of the industry, outperforming 90.41% of the companies in the same industry.
ROOT has a Return On Invested Capital of 6.21%. This is amongst the best in the industry. ROOT outperforms 86.30% of its industry peers.
| 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
The Profit Margin of ROOT (5.94%) is worse than 60.27% of its industry peers.
ROOT has a worse Operating Margin (8.83%) than 60.27% of 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.
ROOT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ROOT has more shares outstanding
The debt/assets ratio for ROOT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.23, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
ROOT's Altman-Z score of 0.23 is fine compared to the rest of the industry. ROOT outperforms 67.81% 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.
ROOT's Debt to FCF ratio of 1.07 is fine compared to the rest of the industry. ROOT outperforms 65.75% of its industry peers.
ROOT has a Debt/Equity ratio of 0.55. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
ROOT has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: ROOT underperforms 71.23% 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 | 0.23 |
ROIC/WACC0.64
WACC9.68%
2.3 Liquidity
A Current Ratio of 0.27 indicates that ROOT may have some problems paying its short term obligations.
ROOT's Current ratio of 0.27 is fine compared to the rest of the industry. ROOT outperforms 70.55% of its industry peers.
ROOT has a Quick 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 better Quick ratio (0.27) than 70.55% 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
The Earnings Per Share is expected to grow by 28.59% on average over the next years. This is a very strong growth
Based on estimates for the next years, ROOT will show a decrease in Revenue. The Revenue will decrease by -8.30% on average per year.
EPS Next Y20.89%
EPS Next 2Y20.54%
EPS Next 3Y28.59%
EPS Next 5YN/A
Revenue Next Year29.45%
Revenue Next 2Y19.19%
Revenue Next 3Y17.11%
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 17.59 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 61.64% of the companies in the same industry.
ROOT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.03.
The Price/Forward Earnings ratio is 35.47, which means the current valuation is very expensive for ROOT.
78.77% of the companies in the same industry are cheaper than ROOT, based on the Price/Forward Earnings ratio.
ROOT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 35.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 73.97% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than the industry average as 65.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.38 | ||
| EV/EBITDA | 5.88 |
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 28.59% in the coming years.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y20.54%
EPS Next 3Y28.59%
5. Dividend
5.1 Amount
ROOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ROOT (11/5/2025, 2:53:53 PM)
88.135
+8.95 (+11.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners63.47%
Inst Owner Change0.8%
Ins Owners3.12%
Ins Owner Change-0.17%
Market Cap1.36B
Revenue(TTM)1.36B
Net Income(TTM)81.00M
Analysts76.67
Price Target126.89 (43.97%)
Short Float %19.55%
Short Ratio5.27
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)-4.75%
PT rev (3m)-14.21%
EPS NQ rev (1m)27.35%
EPS NQ rev (3m)-741.04%
EPS NY rev (1m)3.66%
EPS NY rev (3m)-10.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.59 | ||
| Fwd PE | 35.47 | ||
| P/S | 1 | ||
| P/FCF | 7.38 | ||
| P/OCF | 6.9 | ||
| P/B | 3.82 | ||
| P/tB | 3.82 | ||
| EV/EBITDA | 5.88 |
EPS(TTM)5.01
EY5.68%
EPS(NY)2.48
Fwd EY2.82%
FCF(TTM)11.95
FCFY13.56%
OCF(TTM)12.78
OCFY14.5%
SpS88.33
BVpS23.07
TBVpS23.07
PEG (NY)0.84
PEG (5Y)N/A
Graham Number51
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
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 Turnover0.86
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 | 0.23 |
F-Score7
WACC9.68%
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 Y20.89%
EPS Next 2Y20.54%
EPS Next 3Y28.59%
EPS Next 5YN/A
Revenue 1Y (TTM)59.76%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%32.86%
Revenue Next Year29.45%
Revenue Next 2Y19.19%
Revenue Next 3Y17.11%
Revenue Next 5Y-8.3%
EBIT growth 1Y533.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year123.59%
EBIT Next 3Y46.23%
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
ROOT INC/OH -CLASS A / ROOT FAQ
What is the fundamental rating for ROOT stock?
ChartMill assigns a fundamental rating of 4 / 10 to ROOT.
Can you provide the valuation status for ROOT INC/OH -CLASS A?
ChartMill assigns a valuation rating of 4 / 10 to ROOT INC/OH -CLASS A (ROOT). This can be considered as Fairly Valued.
How profitable is ROOT INC/OH -CLASS A (ROOT) stock?
ROOT INC/OH -CLASS A (ROOT) has a profitability rating of 3 / 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 17.59 and the Price/Book (PB) ratio is 3.82.