ROOTS CORP (ROOT.CA) Stock Fundamental Analysis
Canada - TSX:ROOT - CA7766521099 - Common Stock
3.28 CAD
+0.03 (+0.92%)
Taking everything into account, ROOT scores 4 out of 10 in our fundamental rating. ROOT was compared to 15 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ROOT was profitable.
ROOT had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -10.56%, ROOT is doing worse than 93.33% of the companies in the same industry.
The Return On Equity of ROOT (-22.33%) is worse than 86.67% of its industry peers.
ROOT has a Return On Invested Capital of 4.61%. This is in the lower half of the industry: ROOT underperforms 60.00% 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 9.22%.
The 3 year average ROIC (3.51%) for ROOT is below the current ROIC(4.61%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.56% | ||
| ROE | -22.33% | ||
| ROIC | 4.61% |
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's Operating Margin of 5.97% is in line compared to the rest of the industry. ROOT outperforms 53.33% of its industry peers.
In the last couple of years the Operating Margin of ROOT has grown nicely.
ROOT has a Gross Margin of 60.91%. This is amongst the best in the industry. ROOT outperforms 93.33% of its industry peers.
ROOT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.97% | ||
| PM (TTM) | N/A | ||
| GM | 60.91% |
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
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
ROOT has an Altman-Z score of 1.39. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.39, ROOT is doing worse than 66.67% of the companies in the same industry.
The Debt to FCF ratio of ROOT is 5.10, which is a neutral value as it means it would take ROOT, 5.10 years of fcf income to pay off all of its debts.
ROOT has a Debt to FCF ratio (5.10) which is in line with its industry peers.
A Debt/Equity ratio of 0.62 indicates that ROOT is somewhat dependend on debt financing.
ROOT has a Debt to Equity ratio (0.62) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.1 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.67
WACC6.92%
2.3 Liquidity
ROOT has a Current Ratio of 1.18. This is a normal value and indicates that ROOT is financially healthy and should not expect problems in meeting its short term obligations.
ROOT has a Current ratio of 1.18. This is in the lower half of the industry: ROOT underperforms 60.00% of its industry peers.
ROOT has a Quick Ratio of 1.18. This is a bad value and indicates that ROOT is not financially healthy enough and could expect problems in meeting its short term obligations.
ROOT has a Quick ratio of 0.34. This is amonst the worse of the industry: ROOT underperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 100.00% over the past year.
The Earnings Per Share has been growing by 12.20% on average over the past years. This is quite good.
ROOT shows a small growth in Revenue. In the last year, the Revenue has grown by 4.48%.
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%15.6%
Revenue 1Y (TTM)4.48%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.33%
3.2 Future
The Earnings Per Share is expected to grow by 45.04% 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 3.53% on average per year.
EPS Next Y46.62%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
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
With a Price/Earnings ratio of 20.50, ROOT is valued on the expensive side.
73.33% of the companies in the same industry are more expensive than ROOT, based on the Price/Earnings ratio.
ROOT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.03.
With a Price/Forward Earnings ratio of 9.74, the valuation of ROOT can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ROOT indicates a rather cheap valuation: ROOT is cheaper than 93.33% 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 (22.27), we can say ROOT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
ROOT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ROOT is cheaper than 86.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.95 | ||
| EV/EBITDA | 5.32 |
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 45.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)1.68
EPS Next 2Y45.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ROOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ROOT (11/4/2025, 7:00:00 PM)
3.28
+0.03 (+0.92%)
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 Owners0.13%
Ins Owner ChangeN/A
Market Cap130.18M
Revenue(TTM)268.46M
Net Income(TTM)-31617000
Analysts82.86
Price Target4.08 (24.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-20.69%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 9.74 | ||
| P/S | 0.48 | ||
| P/FCF | 5.95 | ||
| P/OCF | 4.57 | ||
| P/B | 0.92 | ||
| P/tB | 40.24 | ||
| EV/EBITDA | 5.32 |
EPS(TTM)0.16
EY4.88%
EPS(NY)0.34
Fwd EY10.26%
FCF(TTM)0.55
FCFY16.81%
OCF(TTM)0.72
OCFY21.89%
SpS6.76
BVpS3.57
TBVpS0.08
PEG (NY)0.44
PEG (5Y)1.68
Graham Number3.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.56% | ||
| ROE | -22.33% | ||
| ROCE | 6.66% | ||
| ROIC | 4.61% | ||
| ROICexc | 4.65% | ||
| ROICexgc | 11.06% | ||
| OM | 5.97% | ||
| PM (TTM) | N/A | ||
| GM | 60.91% | ||
| FCFM | 8.15% |
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 Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 5.1 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 22.75% | ||
| Cap/Sales | 2.46% | ||
| Interest Coverage | 5.5 | ||
| Cash Conversion | 63.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.34 | ||
| Altman-Z | 1.39 |
F-Score6
WACC6.92%
ROIC/WACC0.67
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%15.6%
EPS Next Y46.62%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.48%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.33%
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y47.62%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year247.96%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-8.18%
FCF growth 3Y-21.04%
FCF growth 5Y7.66%
OCF growth 1Y-4.46%
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.
Can you provide the valuation status for ROOTS CORP?
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 valuation of ROOTS CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ROOTS CORP (ROOT.CA) is 20.5 and the Price/Book (PB) ratio is 0.92.