ROOTS CORP (ROOT.CA) Stock Fundamental Analysis

TSX:ROOT • CA7766521099

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0 (0%)
Last: Feb 13, 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. ROOT scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


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

  • ROOT has a worse Return On Assets (-9.97%) than 88.89% of its industry peers.
  • Looking at the Return On Equity, with a value of -22.04%, ROOT is doing worse than 88.89% of the companies in the same industry.
  • The Return On Invested Capital of ROOT (4.28%) is worse than 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 of 5.72%. This is comparable to the rest of the industry: ROOT outperforms 50.00% of its industry peers.
  • ROOT's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 61.09%, ROOT belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
  • 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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3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
  • The debt/assets ratio for ROOT is higher compared to a year ago.
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

  • Based on the Altman-Z score of 1.34, we must say that ROOT is in the distress zone and has some risk of bankruptcy.
  • ROOT has a worse Altman-Z score (1.34) 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.
  • The Debt to FCF ratio of ROOT (5.44) is better than 61.11% of its industry peers.
  • ROOT has a Debt/Equity ratio of 0.68. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
  • ROOT has a Debt to Equity ratio (0.68) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 5.44
Altman-Z 1.34
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

  • A Current Ratio of 1.41 indicates that ROOT should not have too much problems paying 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.
  • A Quick Ratio of 0.39 indicates that ROOT may have some problems paying its short term obligations.
  • ROOT has a Quick ratio of 0.39. This is in the lower half of the industry: ROOT underperforms 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.
  • Looking at the last year, ROOT shows a small growth in Revenue. The Revenue has grown by 4.87% in the last 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

  • Based on estimates for the next years, ROOT will show a very strong growth in Earnings Per Share. The EPS will grow by 31.90% on average per year.
  • Based on estimates for the next years, ROOT will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
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

  • 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.
  • 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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7

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 18.75, ROOT is valued on the expensive side.
  • Based on the Price/Earnings ratio, ROOT is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.19. ROOT is valued slightly cheaper when compared to this.
  • Based on the Price/Forward Earnings ratio of 8.91, the valuation of ROOT can be described as reasonable.
  • 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.75
Fwd PE 8.91
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 72.22% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, ROOT is valued a bit cheaper than 72.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 5.22
EV/EBITDA 5.25
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)1.54
EPS Next 2Y45.04%
EPS Next 3Y31.9%

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

0

5. Dividend

5.1 Amount

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

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ROOTS CORP

TSX:ROOT (2/13/2026, 7:00:00 PM)

3

0 (0%)

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 Cap117.60M
Revenue(TTM)273.02M
Net Income(TTM)-31.73M
Analysts82.86
Price Target4.08 (36%)
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 18.75
Fwd PE 8.91
P/S 0.43
P/FCF 5.22
P/OCF 4.12
P/B 0.82
P/tB 19.16
EV/EBITDA 5.25
EPS(TTM)0.16
EY5.33%
EPS(NY)0.34
Fwd EY11.22%
FCF(TTM)0.58
FCFY19.17%
OCF(TTM)0.73
OCFY24.27%
SpS6.96
BVpS3.67
TBVpS0.16
PEG (NY)0.55
PEG (5Y)1.54
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 1.34
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.