ROOTS CORP (ROOT.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ROOT - CA7766521099 - Common Stock
3.05 CAD
-0.07 (-2.24%)
ROOT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 16 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 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.
Each year in the past 5 years ROOT had a positive operating cash flow.
1.2 Ratios
ROOT's Return On Assets of -9.97% is on the low side compared to the rest of the industry. ROOT is outperformed by 87.50% of its industry peers.
The Return On Equity of ROOT (-22.04%) is worse than 87.50% of its industry peers.
ROOT's Return On Invested Capital of 4.28% is in line compared to the rest of the industry. ROOT outperforms 43.75% of its industry peers.
ROOT had an Average Return On Invested Capital over the past 3 years of 3.51%. This is significantly below the industry average of 9.29%.
The 3 year average ROIC (3.51%) for ROOT is below the current ROIC(4.28%), indicating increased profibility in the last year.
| 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
ROOT has a Operating Margin (5.72%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ROOT has grown nicely.
The Gross Margin of ROOT (61.09%) is better than 93.75% of its industry peers.
ROOT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.72% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROOT is destroying value.
Compared to 1 year ago, ROOT has more shares outstanding
ROOT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ROOT is higher compared to a year ago.
2.2 Solvency
ROOT has an Altman-Z score of 1.35. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
ROOT's Altman-Z score of 1.35 is on the low side compared to the rest of the industry. ROOT is outperformed by 68.75% of its industry peers.
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 comparable to the rest of the industry: ROOT outperforms 50.00% 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.
ROOT's Debt to Equity ratio of 0.68 is in line compared to the rest of the industry. ROOT outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 5.44 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.6
WACC7.11%
2.3 Liquidity
A Current Ratio of 1.41 indicates that ROOT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.41, ROOT is in line with its industry, outperforming 56.25% of the companies in the same industry.
ROOT has a Quick Ratio of 1.41. This is a bad value and indicates that ROOT is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.39, ROOT is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| 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.
Looking at the last year, ROOT shows a small growth in Revenue. The Revenue has grown by 4.87% 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)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.
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
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
Based on the Price/Earnings ratio of 19.06, the valuation of ROOT can be described as rather expensive.
ROOT's Price/Earnings ratio is a bit cheaper when compared to the industry. ROOT is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of ROOT to the average of the S&P500 Index (26.60), we can say ROOT is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.06 indicates a reasonable valuation of ROOT.
93.75% of the companies in the same industry are more expensive than ROOT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.23. ROOT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
87.50% of the companies in the same industry are more expensive than ROOT, based on the Enterprise Value to EBITDA ratio.
75.00% of the companies in the same industry are more expensive than ROOT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.33 | ||
| EV/EBITDA | 5.37 |
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 31.90% in the coming years.
PEG (NY)0.56
PEG (5Y)1.56
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 (1/2/2026, 7:00:00 PM)
3.05
-0.07 (-2.24%)
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 Cap120.29M
Revenue(TTM)273.02M
Net Income(TTM)-31.73M
Analysts82.86
Price Target4.08 (33.77%)
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)-8.7%
EPS NY rev (3m)-8.7%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.22%
Revenue NY rev (3m)2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.06 | ||
| Fwd PE | 9.06 | ||
| P/S | 0.44 | ||
| P/FCF | 5.33 | ||
| P/OCF | 4.22 | ||
| P/B | 0.84 | ||
| P/tB | 19.6 | ||
| EV/EBITDA | 5.37 |
EPS(TTM)0.16
EY5.25%
EPS(NY)0.34
Fwd EY11.04%
FCF(TTM)0.57
FCFY18.74%
OCF(TTM)0.72
OCFY23.72%
SpS6.92
BVpS3.65
TBVpS0.16
PEG (NY)0.56
PEG (5Y)1.56
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 | 1.35 |
F-Score6
WACC7.11%
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 5 / 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.