ROOTS CORP (ROOT.CA) Stock Fundamental Analysis

TSX:ROOT • CA7766521099

2.96 CAD
-0.04 (-1.33%)
Last: Feb 19, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

ROOT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ROOT.


Dividend Valuation Growth Profitability Health

4

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.
  • 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

  • Looking at the Return On Assets, with a value of -9.97%, ROOT is doing worse than 88.89% of the companies in the same industry.
  • ROOT has a Return On Equity of -22.04%. This is amonst the worse of the industry: ROOT underperforms 88.89% of its industry peers.
  • ROOT's Return On Invested Capital of 4.28% is on the low side compared to the rest of the industry. ROOT is outperformed by 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 11.30%.
  • 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

  • ROOT has a Operating Margin (5.72%) which is in line with its industry peers.
  • ROOT's Operating Margin has improved in the last couple of years.
  • ROOT has a better Gross Margin (61.09%) than 94.44% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROOT is destroying value.
  • The number of shares outstanding for ROOT has been increased compared to 1 year ago.
  • 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.
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 1.33. 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 (1.33) than 66.67% 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 better Debt to FCF ratio (5.44) than 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 1.33
ROIC/WACC0.58
WACC7.33%
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

  • 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.
  • 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.
  • 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.
  • The Quick ratio of ROOT (0.39) is worse than 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%.
  • 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.
  • 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.
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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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 18.50, which indicates a rather expensive current valuation of ROOT.
  • 66.67% of the companies in the same industry are more expensive than ROOT, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.09, ROOT is valued a bit cheaper.
  • ROOT is valuated reasonably with a Price/Forward Earnings ratio of 8.79.
  • ROOT's Price/Forward Earnings ratio is rather cheap when compared to the industry. ROOT is cheaper than 83.33% of the companies 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 27.98.
Industry RankSector Rank
PE 18.5
Fwd PE 8.79
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

  • 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 RankSector Rank
P/FCF 5.15
EV/EBITDA 5.21
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

  • ROOT's 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)0.55
PEG (5Y)1.52
EPS Next 2Y45.04%
EPS Next 3Y31.9%

More info and screens

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

0

5. Dividend

5.1 Amount

  • ROOT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

ROOTS CORP

TSX:ROOT (2/19/2026, 7:00:00 PM)

2.96

-0.04 (-1.33%)

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 Cap116.03M
Revenue(TTM)273.02M
Net Income(TTM)-31.73M
Analysts82.86
Price Target4.08 (37.84%)
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 18.5
Fwd PE 8.79
P/S 0.42
P/FCF 5.15
P/OCF 4.07
P/B 0.81
P/tB 18.91
EV/EBITDA 5.21
EPS(TTM)0.16
EY5.41%
EPS(NY)0.34
Fwd EY11.37%
FCF(TTM)0.58
FCFY19.43%
OCF(TTM)0.73
OCFY24.59%
SpS6.96
BVpS3.67
TBVpS0.16
PEG (NY)0.55
PEG (5Y)1.52
Graham Number3.64
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 1.33
F-Score6
WACC7.33%
ROIC/WACC0.58
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.