ROOTS CORP (ROOT.CA) Stock Fundamental Analysis
TSX:ROOT - Toronto Stock Exchange - CA7766521099 - Common Stock - Currency: CAD
Taking everything into account, ROOT scores 4 out of 10 in our fundamental rating. ROOT was compared to 16 industry peers in the Specialty Retail industry. ROOT has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year ROOT had a positive cash flow from operations.
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.
1.2 Ratios
The Return On Assets of ROOT (-10.95%) is worse than 87.50% of its industry peers.
ROOT's Return On Equity of -22.03% is on the low side compared to the rest of the industry. ROOT is outperformed by 81.25% of its industry peers.
ROOT has a Return On Invested Capital (4.24%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for ROOT is below the industry average of 8.08%.
The 3 year average ROIC (3.51%) for ROOT is below the current ROIC(4.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.95% | ||
| ROE | -22.03% | ||
| ROIC | 4.24% |
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
Looking at the Operating Margin, with a value of 5.65%, ROOT is in line with its industry, outperforming 56.25% of the companies in the same industry.
ROOT's Operating Margin has improved in the last couple of years.
ROOT has a better Gross Margin (60.13%) than 93.75% of its industry peers.
ROOT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.65% | ||
| PM (TTM) | N/A | ||
| GM | 60.13% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ROOT is destroying value.
ROOT has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ROOT has less shares outstanding
The debt/assets ratio for ROOT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.39, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
ROOT's Altman-Z score of 1.39 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 5.48, which is a neutral value as it means it would take ROOT, 5.48 years of fcf income to pay off all of its debts.
ROOT has a Debt to FCF ratio of 5.48. This is in the better half of the industry: ROOT outperforms 62.50% of its industry peers.
ROOT has a Debt/Equity ratio of 0.59. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
ROOT's Debt to Equity ratio of 0.59 is in line compared to the rest of the industry. ROOT outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.48 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.62
WACC6.82%
2.3 Liquidity
ROOT has a Current Ratio of 1.20. This is a normal value and indicates that ROOT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ROOT (1.20) is comparable to the rest of the industry.
ROOT has a Quick Ratio of 1.20. 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 0.41. This is amonst the worse of the industry: ROOT underperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
ROOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 220.00%, which is quite impressive.
The Earnings Per Share has been growing by 12.20% on average over the past years. This is quite good.
Looking at the last year, ROOT shows a small growth in Revenue. The Revenue has grown by 2.65% in the last year.
ROOT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.44% yearly.
EPS 1Y (TTM)220%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%0%
Revenue 1Y (TTM)2.65%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.72%
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 Y84.87%
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
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
ROOT is valuated rather expensively with a Price/Earnings ratio of 18.69.
Compared to the rest of the industry, the Price/Earnings ratio of ROOT indicates a rather cheap valuation: ROOT is cheaper than 81.25% of the companies listed in the same industry.
ROOT is valuated rather cheaply when we compare the Price/Earnings ratio to 27.29, which is the current average of the S&P500 Index.
ROOT is valuated reasonably with a Price/Forward Earnings ratio of 8.88.
Based on the Price/Forward Earnings ratio, ROOT is valued cheaper than 93.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ROOT to the average of the S&P500 Index (21.74), we can say ROOT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 8.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROOT is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.96 | ||
| EV/EBITDA | 5.1 |
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 45.04% in the coming years.
PEG (NY)0.22
PEG (5Y)1.53
EPS Next 2Y45.04%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for ROOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:ROOT (7/7/2025, 7:00:00 PM)
2.99
-0.07 (-2.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners0.01%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap120.71M
Analysts82.86
Price Target3.83 (28.09%)
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)1
Avg EPS beat(2)-1.32%
Min EPS beat(2)-3.2%
Max EPS beat(2)0.55%
EPS beat(4)3
Avg EPS beat(4)14.39%
Min EPS beat(4)-3.2%
Max EPS beat(4)37.25%
EPS beat(8)5
Avg EPS beat(8)1.65%
EPS beat(12)6
Avg EPS beat(12)-7.86%
EPS beat(16)10
Avg EPS beat(16)4.68%
Revenue beat(2)2
Avg Revenue beat(2)1.49%
Min Revenue beat(2)1.42%
Max Revenue beat(2)1.56%
Revenue beat(4)3
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-10.02%
Max Revenue beat(4)3.79%
Revenue beat(8)4
Avg Revenue beat(8)-1.96%
Revenue beat(12)6
Avg Revenue beat(12)-1.77%
Revenue beat(16)8
Avg Revenue beat(16)-1.22%
PT rev (1m)15.38%
PT rev (3m)15.38%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 8.88 | ||
| P/S | 0.45 | ||
| P/FCF | 5.96 | ||
| P/OCF | 4.45 | ||
| P/B | 0.82 | ||
| P/tB | 14.32 | ||
| EV/EBITDA | 5.1 |
EPS(TTM)0.16
EY5.35%
EPS(NY)0.34
Fwd EY11.26%
FCF(TTM)0.5
FCFY16.78%
OCF(TTM)0.67
OCFY22.49%
SpS6.58
BVpS3.65
TBVpS0.21
PEG (NY)0.22
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.95% | ||
| ROE | -22.03% | ||
| ROCE | 6.12% | ||
| ROIC | 4.24% | ||
| ROICexc | 4.35% | ||
| ROICexgc | 10.37% | ||
| OM | 5.65% | ||
| PM (TTM) | N/A | ||
| GM | 60.13% | ||
| FCFM | 7.63% |
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%
ROICexcg growth 3Y-29.15%
ROICexcg 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-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 5.48 | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | 23.53% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 4.83 | ||
| Cash Conversion | 61.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 1.39 |
F-Score5
WACC6.82%
ROIC/WACC0.62
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)220%
EPS 3Y-37%
EPS 5Y12.2%
EPS Q2Q%0%
EPS Next Y84.87%
EPS Next 2Y45.04%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.65%
Revenue growth 3Y-1.34%
Revenue growth 5Y-4.44%
Sales Q2Q%6.72%
Revenue Next Year4.21%
Revenue Next 2Y3.53%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y37.92%
EBIT growth 3Y-30.66%
EBIT growth 5Y0.95%
EBIT Next Year91.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y0.54%
FCF growth 3Y-21.04%
FCF growth 5Y7.66%
OCF growth 1Y2.26%
OCF growth 3Y-16.96%
OCF growth 5Y-4.19%