ROOTS CORP (ROOT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ROOT - CA7766521099 - Common Stock
3.13 CAD
0 (0%)
Taking everything into account, ROOT scores 4 out of 10 in our fundamental rating. ROOT was compared to 18 industry peers in the Specialty Retail industry. There are concerns on the financial health of ROOT while its profitability can be described as average. ROOT is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year ROOT was profitable.
In the past year ROOT had a positive cash flow from operations.
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
ROOT has a worse Return On Assets (-9.97%) than 88.89% of its industry peers.
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 worse Return On Invested Capital (4.28%) than 61.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ROOT is significantly below the industry average of 10.62%.
The last Return On Invested Capital (4.28%) for ROOT is above the 3 year average (3.51%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Operating Margin, with a value of 5.72%, ROOT is in line with its industry, outperforming 50.00% of the companies in the same industry.
ROOT's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 61.09%, ROOT belongs to the best 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ROOT 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.
Compared to 1 year ago, ROOT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
ROOT has a Altman-Z score of 1.36. This is in the lower half of the industry: ROOT underperforms 61.11% of its industry peers.
ROOT has a debt to FCF ratio of 5.44. This is a neutral value as ROOT would need 5.44 years to pay back of all of its debts.
ROOT has a better Debt to FCF ratio (5.44) than 61.11% of its industry peers.
ROOT has a Debt/Equity ratio of 0.68. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, ROOT is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.6
WACC7.18%
2.3 Liquidity
ROOT has a Current Ratio of 1.41. This is a normal value and indicates that ROOT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ROOT (1.41) is better than 61.11% of its industry peers.
A Quick Ratio of 0.39 indicates that ROOT may have some problems paying its short term obligations.
The Quick ratio of ROOT (0.39) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.39 |
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.
The Revenue has been growing slightly by 4.87% in the past year.
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
ROOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.90% yearly.
The Revenue is expected to grow by 3.86% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.56, which indicates a rather expensive current valuation of ROOT.
Based on the Price/Earnings ratio, ROOT is valued a bit 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 27.30.
The Price/Forward Earnings ratio is 9.30, which indicates a very decent valuation of ROOT.
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.
When comparing the Price/Forward Earnings ratio of ROOT to the average of the S&P500 Index (24.04), we can say ROOT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 9.3 |
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 72.22% of the companies listed in the same industry.
ROOT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ROOT is cheaper than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.47 | ||
| EV/EBITDA | 5.38 |
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)0.58
PEG (5Y)1.6
EPS Next 2Y45.04%
EPS Next 3Y31.9%
5. Dividend
5.1 Amount
ROOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:ROOT (1/12/2026, 7:00:00 PM)
3.13
0 (0%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners0.05%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap123.45M
Revenue(TTM)273.02M
Net Income(TTM)-31.73M
Analysts82.86
Price Target4.08 (30.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)-4.65%
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)0.91%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.56 | ||
| Fwd PE | 9.3 | ||
| P/S | 0.45 | ||
| P/FCF | 5.47 | ||
| P/OCF | 4.33 | ||
| P/B | 0.86 | ||
| P/tB | 20.12 | ||
| EV/EBITDA | 5.38 |
EPS(TTM)0.16
EY5.11%
EPS(NY)0.34
Fwd EY10.75%
FCF(TTM)0.57
FCFY18.27%
OCF(TTM)0.72
OCFY23.12%
SpS6.92
BVpS3.65
TBVpS0.16
PEG (NY)0.58
PEG (5Y)1.6
Graham Number3.62
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 1.36 |
F-Score6
WACC7.18%
ROIC/WACC0.6
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.