ROOTS CORP (ROOT.CA) Stock Fundamental Analysis
Canada - TSX:ROOT - CA7766521099 - Common Stock
3.23 CAD
-0.01 (-0.31%)
We assign a fundamental rating of 4 out of 10 to ROOT. ROOT was compared to 16 industry peers in the Specialty Retail industry. ROOT has a medium profitability rating, but doesn't score so well on its financial health evaluation. ROOT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
Of the past 5 years ROOT 4 years were profitable.
ROOT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -10.95%, ROOT is doing worse than 87.50% of the companies in the same industry.
The Return On Equity of ROOT (-22.03%) is worse than 81.25% of its industry peers.
With a Return On Invested Capital value of 4.24%, ROOT perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROOT is below the industry average of 8.41%.
The 3 year average ROIC (3.51%) for ROOT is below the current ROIC(4.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.95% | ||
| ROE | -22.03% | ||
| ROIC | 4.24% |
ROA(3y)-2.65%
ROA(5y)0.24%
ROE(3y)-5.48%
ROE(5y)0.76%
ROIC(3y)3.51%
ROIC(5y)5.08%
1.3 Margins
The Operating Margin of ROOT (5.65%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ROOT has grown nicely.
ROOT has a better Gross Margin (60.13%) than 93.75% of its industry peers.
ROOT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.65% | ||
| PM (TTM) | N/A | ||
| GM | 60.13% |
OM growth 3Y-29.72%
OM growth 5Y5.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.15%
GM growth 5Y2.18%
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.
The number of shares outstanding for ROOT has been reduced compared to 5 years ago.
Compared to 1 year ago, ROOT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
ROOT has a worse Altman-Z score (1.42) than 62.50% of its industry peers.
ROOT has a debt to FCF ratio of 5.48. This is a neutral value as ROOT would need 5.48 years to pay back of all of its debts.
ROOT's Debt to FCF ratio of 5.48 is in line compared to the rest of the industry. ROOT outperforms 56.25% of its industry peers.
ROOT has a Debt/Equity ratio of 0.59. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
ROOT has a Debt to Equity ratio (0.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.57
WACC7.4%
2.3 Liquidity
A Current Ratio of 1.20 indicates that ROOT should not have too much problems paying its short term obligations.
ROOT has a Current ratio (1.20) which is in line with its industry peers.
ROOT has a Quick Ratio of 1.20. 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 (0.41) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
ROOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 220.00%, which is quite impressive.
Measured over the past years, ROOT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.20% on average per year.
Looking at the last year, ROOT shows a small growth in Revenue. The Revenue has grown by 2.65% in the last year.
Measured over the past years, ROOT shows a decrease in Revenue. The Revenue has been decreasing by -4.44% on average per year.
EPS 1Y (TTM)220%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%0%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.72%
3.2 Future
ROOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.04% yearly.
ROOT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y84.87%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.19, ROOT is valued on the expensive side.
Based on the Price/Earnings ratio, ROOT is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ROOT to the average of the S&P500 Index (27.41), we can say ROOT is valued slightly cheaper.
ROOT is valuated reasonably with a Price/Forward Earnings ratio of 9.60.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROOT indicates a rather cheap valuation: ROOT is cheaper than 100.00% of the companies listed in the same industry.
ROOT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.19 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
ROOT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ROOT is cheaper than 87.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.33 | ||
| EV/EBITDA | 5.27 |
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 45.04% in the coming years.
PEG (NY)0.24
PEG (5Y)1.66
EPS Next 2Y45.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ROOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ROOT (9/18/2025, 7:00:00 PM)
3.23
-0.01 (-0.31%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners0.01%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap128.20M
Analysts82.86
Price Target4.08 (26.32%)
Short Float %N/A
Short RatioN/A
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)1
Avg EPS beat(2)-1.32%
Min EPS beat(2)-3.2%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)14.39%
Min EPS beat(4)-3.2%
Max EPS beat(4)37.25%
EPS beat(8)5
Avg EPS beat(8)1.65%
EPS beat(12)6
Avg EPS beat(12)-7.86%
EPS beat(16)10
Avg EPS beat(16)4.68%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)1.42%
Max Revenue beat(2)1.56%
Revenue beat(4)3
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-10.02%
Max Revenue beat(4)3.79%
Revenue beat(8)4
Avg Revenue beat(8)-1.96%
Revenue beat(12)6
Avg Revenue beat(12)-1.77%
Revenue beat(16)8
Avg Revenue beat(16)-1.22%
PT rev (1m)6.67%
PT rev (3m)14.29%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.19 | ||
| Fwd PE | 9.6 | ||
| P/S | 0.48 | ||
| P/FCF | 6.33 | ||
| P/OCF | 4.72 | ||
| P/B | 0.87 | ||
| P/tB | 15.21 | ||
| EV/EBITDA | 5.27 |
EPS(TTM)0.16
EY4.95%
EPS(NY)0.34
Fwd EY10.42%
FCF(TTM)0.51
FCFY15.8%
OCF(TTM)0.68
OCFY21.18%
SpS6.69
BVpS3.71
TBVpS0.21
PEG (NY)0.24
PEG (5Y)1.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.95% | ||
| ROE | -22.03% | ||
| ROCE | 6.12% | ||
| ROIC | 4.24% | ||
| ROICexc | 4.35% | ||
| ROICexgc | 10.37% | ||
| OM | 5.65% | ||
| PM (TTM) | N/A | ||
| GM | 60.13% | ||
| FCFM | 7.63% |
ROA(3y)-2.65%
ROA(5y)0.24%
ROE(3y)-5.48%
ROE(5y)0.76%
ROIC(3y)3.51%
ROIC(5y)5.08%
ROICexc(3y)3.94%
ROICexc(5y)5.58%
ROICexgc(3y)11.48%
ROICexgc(5y)16.3%
ROCE(3y)5.07%
ROCE(5y)7.33%
ROICexcg growth 3Y-29.15%
ROICexcg growth 5Y16.08%
ROICexc growth 3Y-24.81%
ROICexc growth 5Y11.75%
OM growth 3Y-29.72%
OM growth 5Y5.63%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.15%
GM growth 5Y2.18%
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.48 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 23.53% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 4.83 | ||
| Cash Conversion | 61.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 1.42 |
F-Score5
WACC7.4%
ROIC/WACC0.57
Cap/Depr(3y)20.18%
Cap/Depr(5y)17.1%
Cap/Sales(3y)2.24%
Cap/Sales(5y)1.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)220%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%0%
EPS Next Y84.87%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.65%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.72%
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y37.92%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year91.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y0.54%
FCF growth 3Y-21.04%
FCF growth 5Y7.66%
OCF growth 1Y2.26%
OCF growth 3Y-16.96%
OCF growth 5Y-4.19%