ROOTS CORP (ROOT.CA) Fundamental Analysis & Valuation

TSX:ROOT • CA7766521099

Current stock price

3.84 CAD
-0.11 (-2.78%)
Last:

This ROOT.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. ROOT.CA Profitability Analysis

1.1 Basic Checks

  • ROOT had positive earnings in the past year.
  • 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 4 of the past 5 years.
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 2026 0 20M -20M 40M -40M -60M

1.2 Ratios

  • ROOT has a Return On Assets of -9.97%. This is amonst the worse of the industry: ROOT underperforms 89.47% of its industry peers.
  • The Return On Equity of ROOT (-22.04%) is worse than 84.21% of its industry peers.
  • With a Return On Invested Capital value of 4.28%, ROOT perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
  • ROOT had an Average Return On Invested Capital over the past 3 years of 3.52%. This is significantly below the industry average of 12.42%.
  • The 3 year average ROIC (3.52%) 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)-2.73%
ROA(5y)-0.14%
ROE(3y)-5.68%
ROE(5y)-0.25%
ROIC(3y)3.52%
ROIC(5y)4.7%
ROOT.CA Yearly ROA, ROE, ROICROOT.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 10 -10 -20 -30 -40

1.3 Margins

  • In the last couple of years the Profit Margin of ROOT has declined.
  • ROOT's Operating Margin of 5.72% is in line compared to the rest of the industry. ROOT outperforms 52.63% of its industry peers.
  • ROOT's Operating Margin has declined 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 94.74% of the companies in the same industry.
  • ROOT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 5.72%
PM (TTM) N/A
GM 61.09%
OM growth 3Y-8.11%
OM growth 5Y-14.46%
PM growth 3Y-11.95%
PM growth 5Y-20.96%
GM growth 3Y2.04%
GM growth 5Y1.07%
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 2026 0 20 40 60

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3

2. ROOT.CA Health Analysis

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 less shares outstanding
  • ROOT has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ROOT has an improved debt to assets ratio.
ROOT.CA Yearly Shares OutstandingROOT.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 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 2026 100M 200M 300M 400M

2.2 Solvency

  • ROOT has an Altman-Z score of 1.45. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
  • ROOT has a worse Altman-Z score (1.45) than 73.68% 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.
  • Looking at the Debt to FCF ratio, with a value of 5.44, ROOT is in line with its industry, outperforming 42.11% of the companies in the same industry.
  • A Debt/Equity ratio of 0.68 indicates that ROOT is somewhat dependend on debt financing.
  • ROOT has a Debt to Equity ratio of 0.68. This is comparable to the rest of the industry: ROOT outperforms 52.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 5.44
Altman-Z 1.45
ROIC/WACC0.81
WACC5.28%
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 2026 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.
  • The Current ratio of ROOT (1.41) is better than 63.16% of its industry peers.
  • 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 78.95% 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 2026 20M 40M 60M 80M

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5

3. ROOT.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 100.00% over the past year.
  • 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.
  • ROOT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.61%.
  • 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%5%
Revenue 1Y (TTM)5.61%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%4.2%

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.
  • ROOT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.99% yearly.
EPS Next Y27.5%
EPS Next 2Y45.04%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue Next Year6.56%
Revenue Next 2Y5.01%
Revenue Next 3Y3.99%
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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6

4. ROOT.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 24.00, which indicates a rather expensive current valuation of ROOT.
  • ROOT's Price/Earnings ratio is a bit cheaper when compared to the industry. ROOT is cheaper than 63.16% of the companies in the same industry.
  • ROOT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
  • ROOT is valuated reasonably with a Price/Forward Earnings ratio of 11.41.
  • Based on the Price/Forward Earnings ratio, ROOT is valued cheaper than 84.21% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, ROOT is valued a bit cheaper.
Industry RankSector Rank
PE 24
Fwd PE 11.41
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

  • Based on the Enterprise Value to EBITDA ratio, ROOT is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 68.42% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.68
EV/EBITDA 5.99
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.
  • A more expensive valuation may be justified as ROOT's earnings are expected to grow with 31.90% in the coming years.
PEG (NY)0.87
PEG (5Y)1.97
EPS Next 2Y45.04%
EPS Next 3Y31.9%

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0

5. ROOT.CA Dividend Analysis

5.1 Amount

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

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ROOT.CA Fundamentals: All Metrics, Ratios and Statistics

ROOTS CORP

TSX:ROOT (4/24/2026, 7:00:00 PM)

3.84

-0.11 (-2.78%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)04-09
Earnings (Next)08-31
Inst Owners0.05%
Inst Owner ChangeN/A
Ins Owners0.14%
Ins Owner ChangeN/A
Market Cap150.53M
Revenue(TTM)277.68M
Net Income(TTM)-31.73M
Analysts82.86
Price Target4.08 (6.25%)
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)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)0.92%
Valuation
Industry RankSector Rank
PE 24
Fwd PE 11.41
P/S 0.55
P/FCF 6.68
P/OCF 5.28
P/B 1.05
P/tB 24.53
EV/EBITDA 5.99
EPS(TTM)0.16
EY4.17%
EPS(NY)0.34
Fwd EY8.77%
FCF(TTM)0.58
FCFY14.98%
OCF(TTM)0.73
OCFY18.96%
SpS6.96
BVpS3.67
TBVpS0.16
PEG (NY)0.87
PEG (5Y)1.97
Graham Number3.63559 (-5.32%)
Profitability
Industry RankSector Rank
ROA -9.97%
ROE -22.04%
ROCE 6.18%
ROIC 4.28%
ROICexc 4.41%
ROICexgc 10.04%
OM 5.72%
PM (TTM) N/A
GM 61.09%
FCFM 8.26%
ROA(3y)-2.73%
ROA(5y)-0.14%
ROE(3y)-5.68%
ROE(5y)-0.25%
ROIC(3y)3.52%
ROIC(5y)4.7%
ROICexc(3y)3.97%
ROICexc(5y)5.27%
ROICexgc(3y)10.84%
ROICexgc(5y)15.44%
ROCE(3y)5.08%
ROCE(5y)6.79%
ROICexgc growth 3Y-4.55%
ROICexgc growth 5Y-5.62%
ROICexc growth 3Y0.83%
ROICexc growth 5Y-5.37%
OM growth 3Y-8.11%
OM growth 5Y-14.46%
PM growth 3Y-11.95%
PM growth 5Y-20.96%
GM growth 3Y2.04%
GM growth 5Y1.07%
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 1.45
F-Score6
WACC5.28%
ROIC/WACC0.81
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
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%5%
EPS Next Y27.5%
EPS Next 2Y45.04%
EPS Next 3Y31.9%
EPS Next 5YN/A
Revenue 1Y (TTM)5.61%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%4.2%
Revenue Next Year6.56%
Revenue Next 2Y5.01%
Revenue Next 3Y3.99%
Revenue Next 5YN/A
EBIT growth 1Y18.31%
EBIT growth 3Y-7.49%
EBIT growth 5Y-11.96%
EBIT Next Year263.29%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-13.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13.1%
OCF growth 3YN/A
OCF growth 5YN/A

ROOTS CORP / ROOT.CA Fundamental Analysis 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 for ROOT stock?

ChartMill assigns a valuation rating of 5 / 10 to ROOTS CORP (ROOT.CA). This can be considered as Fairly Valued.


Can you provide the profitability details for ROOTS CORP?

ROOTS CORP (ROOT.CA) has a profitability rating of 5 / 10.


Can you provide the PE and PB ratios for ROOT stock?

The Price/Earnings (PE) ratio for ROOTS CORP (ROOT.CA) is 24 and the Price/Book (PB) ratio is 1.05.


What is the financial health of ROOTS CORP (ROOT.CA) stock?

The financial health rating of ROOTS CORP (ROOT.CA) is 3 / 10.