ROOT INC/OH -CLASS A (ROOT)
US77664L2079 - Common Stock
ROOT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. ROOT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, ROOT is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ROOT has reported negative net income.
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 Return On Assets of -1.40%. This is amonst the worse of the industry: ROOT underperforms 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 82.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.05%, ROOT is in line with its industry, outperforming 52.14% of the companies in the same industry.
| 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
Looking at the Operating Margin, with a value of 3.70%, ROOT is doing worse than 72.14% of the companies in the same industry.
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
The number of shares outstanding for ROOT has been increased compared to 5 years ago.
ROOT has a better debt/assets ratio than last year.
2.2 Solvency
ROOT has an Altman-Z score of -0.26. 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 -0.26, 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 of 1.80. This is comparable to the rest of the industry: ROOT outperforms 52.14% of 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.
ROOT has a worse Debt to Equity ratio (1.00) than 87.86% of its industry peers.
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 | -0.26 |
ROIC/WACC0.21
WACC9.71%
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.
ROOT has a Current ratio of 0.53. This is in the better half of the industry: ROOT outperforms 75.00% of its industry peers.
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.
Looking at the Quick 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 90.33% over the past year.
The Revenue has grown by 215.11% in the past year. This is a very strong growth!
ROOT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 60.07% yearly.
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
ROOT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.08% yearly.
ROOT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.48% yearly.
EPS Next Y94.61%
EPS Next 2Y39.49%
EPS Next 3Y28.48%
EPS Next 5Y23.08%
Revenue Next Year197.48%
Revenue Next 2Y80.05%
Revenue Next 3Y54.33%
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
ROOT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
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
ROOT's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROOT indicates a somewhat cheap valuation: ROOT is cheaper than 61.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.04 | ||
| EV/EBITDA | 13.9 |
4.3 Compensation for Growth
ROOT's earnings are expected to grow with 28.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.49%
EPS Next 3Y28.48%
5. Dividend
5.1 Amount
No dividends for ROOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ROOT INC/OH -CLASS A
NASDAQ:ROOT (12/26/2024, 8:00:02 PM)
After market: 76.08 0 (0%)76.08
+3.31 (+4.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners60.84%
Inst Owner Change-8.96%
Ins Owners4.07%
Ins Owner Change-0.08%
Market Cap1.15B
Analysts76.67
Price Target77.18 (1.45%)
Short Float %11.19%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)148.63%
Min EPS beat(2)62.56%
Max EPS beat(2)234.71%
EPS beat(4)4
Avg EPS beat(4)105.78%
Min EPS beat(4)42.46%
Max EPS beat(4)234.71%
EPS beat(8)7
Avg EPS beat(8)57.71%
EPS beat(12)11
Avg EPS beat(12)46.82%
EPS beat(16)14
Avg EPS beat(16)34.75%
Revenue beat(2)2
Avg Revenue beat(2)8.29%
Min Revenue beat(2)6.71%
Max Revenue beat(2)9.86%
Revenue beat(4)4
Avg Revenue beat(4)22.32%
Min Revenue beat(4)6.71%
Max Revenue beat(4)50.39%
Revenue beat(8)8
Avg Revenue beat(8)19.7%
Revenue beat(12)10
Avg Revenue beat(12)17.42%
Revenue beat(16)12
Avg Revenue beat(16)9.7%
PT rev (1m)24.3%
PT rev (3m)17.31%
EPS NQ rev (1m)25.73%
EPS NQ rev (3m)-149.07%
EPS NY rev (1m)60.8%
EPS NY rev (3m)79.54%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.1 | ||
| P/FCF | 7.04 | ||
| P/OCF | 6.66 | ||
| P/B | 3.91 | ||
| P/tB | 3.91 | ||
| EV/EBITDA | 13.9 |
EPS(TTM)-1.23
EYN/A
EPS(NY)-0.56
Fwd EYN/A
FCF(TTM)10.8
FCFY14.2%
OCF(TTM)11.43
OCFY15.02%
SpS69.18
BVpS19.46
TBVpS19.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.4% | ||
| ROE | -7.45% | ||
| ROCE | 2.6% | ||
| ROIC | 2.05% | ||
| ROICexc | 3.75% | ||
| ROICexgc | 5.26% | ||
| OM | 3.7% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 15.61% |
ROA(3y)-24.37%
ROA(5y)-26.49%
ROE(3y)-69.99%
ROE(5y)-79.32%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score6
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 5.31 | ||
| Cap/Depr | 57.58% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 312.68% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | -0.26 |
F-Score6
WACC9.71%
ROIC/WACC0.21
Cap/Depr(3y)71.75%
Cap/Depr(5y)141.76%
Cap/Sales(3y)2.85%
Cap/Sales(5y)3.47%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)90.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%142.72%
EPS Next Y94.61%
EPS Next 2Y39.49%
EPS Next 3Y28.48%
EPS Next 5Y23.08%
Revenue 1Y (TTM)215.11%
Revenue growth 3Y9.47%
Revenue growth 5Y60.07%
Sales Q2Q%165.13%
Revenue Next Year197.48%
Revenue Next 2Y80.05%
Revenue Next 3Y54.33%
Revenue Next 5Y11.48%
EBIT growth 1Y130.67%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year171.97%
EBIT Next 3Y41.7%
EBIT Next 5Y31.43%
FCF growth 1Y175.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y185.03%
OCF growth 3YN/A
OCF growth 5YN/A