ROOTS CORP (ROOT.CA) Stock Fundamental Analysis
TSX:ROOT - Toronto Stock Exchange - CA7766521099 - Common Stock - Currency: CAD
Taking everything into account, ROOT scores 5 out of 10 in our fundamental rating. ROOT was compared to 16 industry peers in the Specialty Retail industry. ROOT has an average financial health and profitability rating. ROOT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ROOT was profitable.
ROOT had a positive operating cash flow in the past year.
Of the past 5 years ROOT 4 years were profitable.
Each year in the past 5 years ROOT had a positive operating cash flow.
1.2 Ratios
ROOT has a worse Return On Assets (-10.16%) than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of -20.96%, ROOT is doing worse than 68.75% of the companies in the same industry.
ROOT's Return On Invested Capital of 3.65% is in line compared to the rest of the industry. ROOT outperforms 56.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROOT is below the industry average of 6.49%.
The last Return On Invested Capital (3.65%) for ROOT is above the 3 year average (3.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.16% | ||
| ROE | -20.96% | ||
| ROIC | 3.65% |
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
ROOT has a better Operating Margin (5.26%) than 62.50% of its industry peers.
ROOT's Operating Margin has improved in the last couple of years.
ROOT's Gross Margin of 59.76% is amongst the best of the industry. ROOT outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of ROOT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.26% | ||
| PM (TTM) | N/A | ||
| GM | 59.76% |
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
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
ROOT has less shares outstanding than it did 5 years ago.
ROOT has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
ROOT's Altman-Z score of 1.28 is on the low side compared to the rest of the industry. ROOT is outperformed by 62.50% of its industry peers.
The Debt to FCF ratio of ROOT is 4.68, which is a neutral value as it means it would take ROOT, 4.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.68, ROOT is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that ROOT is somewhat dependend on debt financing.
ROOT's Debt to Equity ratio of 0.58 is fine compared to the rest of the industry. ROOT outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.68 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.56
WACC6.53%
2.3 Liquidity
ROOT has a Current Ratio of 1.39. This is a normal value and indicates that ROOT is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.39, ROOT is doing good in the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 0.78 indicates that ROOT may have some problems paying its short term obligations.
The Quick ratio of ROOT (0.78) is better than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
ROOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, 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 0.11% in the last year.
ROOT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.44% yearly.
EPS 1Y (TTM)100%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%11.11%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%2.38%
3.2 Future
Based on estimates for the next years, ROOT will show a very strong growth in Earnings Per Share. The EPS will grow by 45.04% on average per year.
The Revenue is expected to grow by 3.53% on average over the next years.
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
A Price/Earnings ratio of 17.06 indicates a rather expensive valuation of ROOT.
75.00% of the companies in the same industry are more expensive than ROOT, based on the Price/Earnings ratio.
ROOT is valuated rather cheaply when we compare the Price/Earnings ratio to 28.88, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.23, the valuation of ROOT can be described as very reasonable.
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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROOT is valued 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 rather cheap valuation: ROOT is cheaper than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.31 | ||
| EV/EBITDA | 4.51 |
4.3 Compensation for Growth
The 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)0.2
PEG (5Y)1.4
EPS Next 2Y45.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ROOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ROOT (4/30/2025, 7:00:00 PM)
2.73
+0.2 (+7.91%)
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 Owners0.14%
Ins Owner ChangeN/A
Market Cap110.43M
Analysts82.86
Price Target3.32 (21.61%)
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)2
Avg EPS beat(2)18.9%
Min EPS beat(2)0.55%
Max EPS beat(2)37.25%
EPS beat(4)4
Avg EPS beat(4)16.85%
Min EPS beat(4)0.55%
Max EPS beat(4)37.25%
EPS beat(8)5
Avg EPS beat(8)1.53%
EPS beat(12)7
Avg EPS beat(12)-6.17%
EPS beat(16)11
Avg EPS beat(16)7.3%
Revenue beat(2)1
Avg Revenue beat(2)-4.3%
Min Revenue beat(2)-10.02%
Max Revenue beat(2)1.42%
Revenue beat(4)2
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-10.02%
Max Revenue beat(4)3.79%
Revenue beat(8)3
Avg Revenue beat(8)-2.21%
Revenue beat(12)6
Avg Revenue beat(12)-1.34%
Revenue beat(16)8
Avg Revenue beat(16)-0.68%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.06 | ||
| Fwd PE | 9.23 | ||
| P/S | 0.42 | ||
| P/FCF | 4.31 | ||
| P/OCF | 3.42 | ||
| P/B | 0.69 | ||
| P/tB | 5.51 | ||
| EV/EBITDA | 4.51 |
EPS(TTM)0.16
EY5.86%
EPS(NY)0.3
Fwd EY10.84%
FCF(TTM)0.63
FCFY23.21%
OCF(TTM)0.8
OCFY29.28%
SpS6.5
BVpS3.94
TBVpS0.5
PEG (NY)0.2
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.16% | ||
| ROE | -20.96% | ||
| ROCE | 5.27% | ||
| ROIC | 3.65% | ||
| ROICexc | 4.2% | ||
| ROICexgc | 10.78% | ||
| OM | 5.26% | ||
| PM (TTM) | N/A | ||
| GM | 59.76% | ||
| FCFM | 9.75% |
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 Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.68 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 22.6% | ||
| Cap/Sales | 2.55% | ||
| Interest Coverage | 4.28 | ||
| Cash Conversion | 74.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.39 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 1.28 |
F-Score5
WACC6.53%
ROIC/WACC0.56
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)100%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%11.11%
EPS Next Y84.87%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.11%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%2.38%
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.82%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year91.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-24.31%
FCF growth 3Y-21.04%
FCF growth 5Y7.66%
OCF growth 1Y-16.44%
OCF growth 3Y-16.96%
OCF growth 5Y-4.19%