ROOTS CORP (ROOT.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:ROOT • CA7766521099

3.03 CAD
-0.03 (-0.98%)
Last: Feb 4, 2026, 07:00 PM
Fundamental Rating

4

Overall ROOT gets a fundamental rating of 4 out of 10. We evaluated ROOT against 18 industry peers in the Specialty Retail industry. While ROOT is still in line with the averages on profitability rating, there are concerns on its financial health. ROOT is valued quite cheap, while showing a decent growth score. This is a good combination!


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • ROOT had positive earnings in the past year.
  • In the past year ROOT had a positive cash flow from operations.
  • ROOT had positive earnings in 4 of the past 5 years.
  • In the past 5 years ROOT always reported a positive cash flow from operatings.
ROOT.CA Yearly Net Income VS EBIT VS OCF VS FCFROOT.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M -20M 40M -40M -60M

1.2 Ratios

  • With a Return On Assets value of -9.97%, ROOT is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
  • With a Return On Equity value of -22.04%, ROOT is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
  • ROOT has a Return On Invested Capital of 4.28%. This is in the lower half of the industry: ROOT underperforms 61.11% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ROOT is significantly below the industry average of 11.04%.
  • The 3 year average ROIC (3.51%) for ROOT is below the current ROIC(4.28%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -9.97%
ROE -22.04%
ROIC 4.28%
ROA(3y)-2.65%
ROA(5y)0.24%
ROE(3y)-5.48%
ROE(5y)0.76%
ROIC(3y)3.51%
ROIC(5y)5.08%
ROOT.CA Yearly ROA, ROE, ROICROOT.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 -20 -30 -40

1.3 Margins

  • The Operating Margin of ROOT (5.72%) is comparable to the rest of the industry.
  • ROOT's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 61.09%, ROOT belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
  • ROOT's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 5.72%
PM (TTM) N/A
GM 61.09%
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%
ROOT.CA Yearly Profit, Operating, Gross MarginsROOT.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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3

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
  • The number of shares outstanding for ROOT has been reduced compared to 5 years ago.
  • ROOT has a worse debt/assets ratio than last year.
ROOT.CA Yearly Shares OutstandingROOT.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
ROOT.CA Yearly Total Debt VS Total AssetsROOT.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

2.2 Solvency

  • ROOT has an Altman-Z score of 1.34. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 1.34, ROOT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
  • The Debt to FCF ratio of ROOT is 5.44, which is a neutral value as it means it would take ROOT, 5.44 years of fcf income to pay off all of its debts.
  • ROOT has a Debt to FCF ratio of 5.44. This is in the better half of the industry: ROOT outperforms 61.11% of its industry peers.
  • A Debt/Equity ratio of 0.68 indicates that ROOT is somewhat dependend on debt financing.
  • ROOT's Debt to Equity ratio of 0.68 is in line compared to the rest of the industry. ROOT outperforms 55.56% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 5.44
Altman-Z 1.34
ROIC/WACC0.59
WACC7.26%
ROOT.CA Yearly LT Debt VS Equity VS FCFROOT.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M 100M 150M 200M

2.3 Liquidity

  • A Current Ratio of 1.41 indicates that ROOT should not have too much problems paying its short term obligations.
  • With a decent Current ratio value of 1.41, ROOT is doing good in the industry, outperforming 61.11% of the companies in the same industry.
  • A Quick Ratio of 0.39 indicates that ROOT may have some problems paying its short term obligations.
  • ROOT's Quick ratio of 0.39 is on the low side compared to the rest of the industry. ROOT is outperformed by 77.78% of its industry peers.
Industry RankSector Rank
Current Ratio 1.41
Quick Ratio 0.39
ROOT.CA Yearly Current Assets VS Current LiabilitesROOT.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 100.00% over the past year.
  • ROOT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.20% yearly.
  • ROOT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.87%.
  • The Revenue has been decreasing by -4.44% on average over the past years.
EPS 1Y (TTM)100%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%14.29%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.82%

3.2 Future

  • The Earnings Per Share is expected to grow by 31.90% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, ROOT will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
EPS Next Y33.87%
EPS Next 2Y45.04%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue Next Year6.52%
Revenue Next 2Y4.53%
Revenue Next 3Y3.86%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ROOT.CA Yearly Revenue VS EstimatesROOT.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100M 200M 300M
ROOT.CA Yearly EPS VS EstimatesROOT.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.2 0.4 0.6

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7

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 18.94, ROOT is valued on the expensive side.
  • ROOT's Price/Earnings ratio is a bit cheaper when compared to the industry. ROOT is cheaper than 66.67% 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 28.25.
  • Based on the Price/Forward Earnings ratio of 9.00, the valuation of ROOT can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ROOT indicates a rather cheap valuation: ROOT is cheaper than 83.33% 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 27.50.
Industry RankSector Rank
PE 18.94
Fwd PE 9
ROOT.CA Price Earnings VS Forward Price EarningsROOT.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • ROOT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ROOT is cheaper than 72.22% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than 72.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.3
EV/EBITDA 5.29
ROOT.CA Per share dataROOT.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

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.
  • ROOT's earnings are expected to grow with 31.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.56
PEG (5Y)1.55
EPS Next 2Y45.04%
EPS Next 3Y31.9%

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

0

5. Dividend

5.1 Amount

  • No dividends for ROOT!.
Industry RankSector Rank
Dividend Yield 0%

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ROOTS CORP

TSX:ROOT (2/4/2026, 7:00:00 PM)

3.03

-0.03 (-0.98%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)12-10
Earnings (Next)04-07
Inst Owners0.05%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap119.50M
Revenue(TTM)273.02M
Net Income(TTM)-31.73M
Analysts82.86
Price Target4.08 (34.65%)
Short Float %N/A
Short RatioN/A
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.22%
Valuation
Industry RankSector Rank
PE 18.94
Fwd PE 9
P/S 0.44
P/FCF 5.3
P/OCF 4.19
P/B 0.83
P/tB 19.47
EV/EBITDA 5.29
EPS(TTM)0.16
EY5.28%
EPS(NY)0.34
Fwd EY11.11%
FCF(TTM)0.57
FCFY18.87%
OCF(TTM)0.72
OCFY23.88%
SpS6.92
BVpS3.65
TBVpS0.16
PEG (NY)0.56
PEG (5Y)1.55
Graham Number3.62
Profitability
Industry RankSector Rank
ROA -9.97%
ROE -22.04%
ROCE 6.18%
ROIC 4.28%
ROICexc 4.41%
ROICexgc 10.05%
OM 5.72%
PM (TTM) N/A
GM 61.09%
FCFM 8.26%
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%
ROICexgc growth 3Y-29.15%
ROICexgc 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-Score6
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 5.44
Debt/EBITDA 2.21
Cap/Depr 20.85%
Cap/Sales 2.19%
Interest Coverage 5.84
Cash Conversion 64.34%
Profit Quality N/A
Current Ratio 1.41
Quick Ratio 0.39
Altman-Z 1.34
F-Score6
WACC7.26%
ROIC/WACC0.59
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%14.29%
EPS Next Y33.87%
EPS Next 2Y45.04%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue 1Y (TTM)4.87%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.82%
Revenue Next Year6.52%
Revenue Next 2Y4.53%
Revenue Next 3Y3.86%
Revenue Next 5YN/A
EBIT growth 1Y18.31%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year237.64%
EBIT Next 3Y59.75%
EBIT Next 5YN/A
FCF growth 1Y-26.74%
FCF growth 3Y-21.04%
FCF growth 5Y7.66%
OCF growth 1Y-20.27%
OCF growth 3Y-16.96%
OCF growth 5Y-4.19%

ROOTS CORP / ROOT.CA FAQ

What is the fundamental rating for ROOT stock?

ChartMill assigns a fundamental rating of 4 / 10 to ROOT.CA.


What is the valuation status of ROOTS CORP (ROOT.CA) stock?

ChartMill assigns a valuation rating of 7 / 10 to ROOTS CORP (ROOT.CA). This can be considered as Undervalued.


How profitable is ROOTS CORP (ROOT.CA) stock?

ROOTS CORP (ROOT.CA) has a profitability rating of 4 / 10.


What is the expected EPS growth for ROOTS CORP (ROOT.CA) stock?

The Earnings per Share (EPS) of ROOTS CORP (ROOT.CA) is expected to grow by 33.87% in the next year.