ROOTS CORP (ROOT.CA) Stock Fundamental Analysis

Canada • Toronto Stock Exchange • TSX:ROOT • CA7766521099

3.06 CAD
-0.09 (-2.86%)
Last: Feb 3, 2026, 07:00 PM
Fundamental Rating

4

Overall ROOT gets a fundamental rating of 4 out of 10. We evaluated ROOT against 18 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. 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

  • In the past year ROOT was profitable.
  • ROOT had a positive operating cash flow in the past year.
  • ROOT had positive earnings in 4 of the past 5 years.
  • ROOT had a positive operating cash flow in each 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 0 20M -20M 40M -40M -60M

1.2 Ratios

  • The Return On Assets of ROOT (-9.97%) is worse 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.
  • With a Return On Invested Capital value of 4.28%, ROOT is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
  • The Average Return On Invested Capital over the past 3 years for ROOT is significantly below the industry average of 11.04%.
  • 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

  • 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.
  • In the last couple of years the Operating Margin of ROOT has grown nicely.
  • The Gross Margin of ROOT (61.09%) is better than 94.44% of its industry peers.
  • In the last couple of years the Gross Margin of ROOT has grown nicely.
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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3

2. Health

2.1 Basic Checks

  • ROOT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
  • ROOT has a worse debt/assets ratio than last year.
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 1.36. 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 1.36, ROOT is doing worse than 61.11% of the companies in the same industry.
  • 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.
  • With a decent Debt to FCF ratio value of 5.44, ROOT is doing good in the industry, outperforming 61.11% 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 55.56% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 5.44
Altman-Z 1.36
ROIC/WACC0.59
WACC7.27%
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

  • A Current Ratio of 1.41 indicates that ROOT should not have too much problems paying its short term obligations.
  • ROOT has a Current ratio of 1.41. This is in the better half of the industry: ROOT outperforms 61.11% of its industry peers.
  • A Quick Ratio of 0.39 indicates that ROOT may have some problems paying its short term obligations.
  • ROOT has a worse Quick ratio (0.39) 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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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.
  • The Revenue has been growing slightly by 4.87% in the past 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.
  • 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.
  • 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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7

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 19.13, 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 66.67% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of ROOT to the average of the S&P500 Index (28.18), we can say ROOT is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 9.09, which indicates a very decent valuation of ROOT.
  • 83.33% of the companies in the same industry are more expensive than ROOT, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, ROOT is valued rather cheaply.
Industry RankSector Rank
PE 19.13
Fwd PE 9.09
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 72.22% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 72.22% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 5.35
EV/EBITDA 5.4
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)0.56
PEG (5Y)1.57
EPS Next 2Y45.04%
EPS Next 3Y31.9%

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0

5. Dividend

5.1 Amount

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

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ROOTS CORP

TSX:ROOT (2/3/2026, 7:00:00 PM)

3.06

-0.09 (-2.86%)

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 Cap120.69M
Revenue(TTM)273.02M
Net Income(TTM)-31.73M
Analysts82.86
Price Target4.08 (33.33%)
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 19.13
Fwd PE 9.09
P/S 0.44
P/FCF 5.35
P/OCF 4.23
P/B 0.84
P/tB 19.67
EV/EBITDA 5.4
EPS(TTM)0.16
EY5.23%
EPS(NY)0.34
Fwd EY11%
FCF(TTM)0.57
FCFY18.68%
OCF(TTM)0.72
OCFY23.64%
SpS6.92
BVpS3.65
TBVpS0.16
PEG (NY)0.56
PEG (5Y)1.57
Graham Number3.62
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 1.36
F-Score6
WACC7.27%
ROIC/WACC0.59
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.