ROOT INC/OH -CLASS A (ROOT)
US77664L2079 - Common Stock
Taking everything into account, ROOT scores 3 out of 10 in our fundamental rating. ROOT was compared to 141 industry peers in the Insurance industry. The financial health of ROOT is average, but there are quite some concerns on its profitability. ROOT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ROOT had negative earnings in the past year.
ROOT had a positive operating cash flow in the past year.
ROOT had negative earnings in each of the past 5 years.
ROOT had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
ROOT has a worse Return On Assets (-1.40%) than 85.71% of its industry peers.
ROOT has a Return On Equity of -7.45%. This is amonst the worse of the industry: ROOT underperforms 81.43% of its industry peers.
ROOT has a Return On Invested Capital (2.05%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.4% | ||
| ROE | -7.45% | ||
| ROIC | 2.05% |
ROA(3y)-24.37%
ROA(5y)-26.49%
ROE(3y)-69.99%
ROE(5y)-79.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Operating Margin value of 3.70%, ROOT is not doing good in the industry: 72.14% of the companies in the same industry are doing better.
The Profit Margin and Gross Margin are not available for ROOT so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.7% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
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
Compared to 5 years ago, ROOT has more shares outstanding
Compared to 1 year ago, ROOT has an improved debt to assets ratio.
2.2 Solvency
ROOT has an Altman-Z score of -0.02. This is a bad value and indicates that ROOT is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of -0.02, ROOT is doing good in the industry, outperforming 70.71% of the companies in the same industry.
The Debt to FCF ratio of ROOT is 1.80, which is an excellent value as it means it would take ROOT, only 1.80 years of fcf income to pay off all of its debts.
ROOT has a Debt to FCF ratio (1.80) which is in line with its industry peers.
ROOT has a Debt/Equity ratio of 1.00. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.00, ROOT is doing worse than 86.43% of the companies in the same industry.
Although ROOT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | -0.02 |
ROIC/WACC0.22
WACC9.45%
2.3 Liquidity
ROOT has a Current Ratio of 0.53. This is a bad value and indicates that ROOT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.53, ROOT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
ROOT has a Quick Ratio of 0.53. 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 better Quick ratio (0.53) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
ROOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.33%, which is quite impressive.
Looking at the last year, ROOT shows a very strong growth in Revenue. The Revenue has grown by 215.11%.
Measured over the past years, ROOT shows a very strong growth in Revenue. The Revenue has been growing by 60.07% on average per year.
EPS 1Y (TTM)90.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%142.72%
Revenue 1Y (TTM)215.11%
Revenue growth 3Y9.47%
Revenue growth 5Y60.07%
Sales Q2Q%165.13%
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 25.44% on average per year.
The Revenue is expected to grow by 11.48% on average over the next years. This is quite good.
EPS Next Y86.26%
EPS Next 2Y34.97%
EPS Next 3Y25.44%
EPS Next 5YN/A
Revenue Next Year197.74%
Revenue Next 2Y80.41%
Revenue Next 3Y55.16%
Revenue Next 5Y11.48%
3.3 Evolution
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ROOT. In the last year negative earnings were reported.
Also next year ROOT is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROOT is valued a bit more expensive than the industry average as 60.71% of the companies are valued more cheaply.
ROOT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.11 | ||
| EV/EBITDA | 22.97 |
4.3 Compensation for Growth
ROOT's earnings are expected to grow with 25.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.97%
EPS Next 3Y25.44%
5. Dividend
5.1 Amount
ROOT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ROOT INC/OH -CLASS A
NASDAQ:ROOT (11/22/2024, 8:02:38 PM)
After market: 106 -3.23 (-2.96%)109.23
-0.17 (-0.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.4% | ||
| ROE | -7.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.7% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)90.33%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y86.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)215.11%
Revenue growth 3Y9.47%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y