ROOT INC/OH -CLASS A (ROOT) Stock Fundamental Analysis
NASDAQ:ROOT - Nasdaq - US77664L2079 - Common Stock - Currency: USD
ROOT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. The financial health of ROOT is average, but there are quite some concerns on its profitability. ROOT is valied quite expensively at the moment, while it does show a decent growth rate.
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.
ROOT had negative earnings in 4 of the past 5 years.
ROOT had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
ROOT's Return On Assets of 1.54% is in line compared to the rest of the industry. ROOT outperforms 46.15% of its industry peers.
ROOT's Return On Equity of 7.29% is on the low side compared to the rest of the industry. ROOT is outperformed by 62.24% of its industry peers.
ROOT's Return On Invested Capital of 4.70% is fine compared to the rest of the industry. ROOT outperforms 79.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 7.29% | ||
| ROIC | 4.7% |
ROA(3y)-10.55%
ROA(5y)-18.35%
ROE(3y)-40.11%
ROE(5y)-47.17%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 1.95%, ROOT is not doing good in the industry: 79.72% of the companies in the same industry are doing better.
ROOT has a worse Operating Margin (7.16%) than 60.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.16% | ||
| PM (TTM) | 1.95% | ||
| 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
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 increased compared to 5 years ago.
Compared to 1 year ago, ROOT has an improved debt to assets ratio.
2.2 Solvency
ROOT has an Altman-Z score of 0.36. 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 0.36, ROOT is doing good in the industry, outperforming 71.33% of the companies in the same industry.
ROOT has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
ROOT's Debt to FCF ratio of 1.07 is fine compared to the rest of the industry. ROOT outperforms 62.24% of its industry peers.
ROOT has a Debt/Equity ratio of 0.62. This is a neutral value indicating ROOT is somewhat dependend on debt financing.
ROOT has a worse Debt to Equity ratio (0.62) than 74.13% of its industry peers.
Even though the debt/equity ratio score it not favorable for ROOT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | 0.36 |
ROIC/WACC0.49
WACC9.56%
2.3 Liquidity
ROOT has a Current Ratio of 0.31. This is a bad value and indicates that ROOT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ROOT (0.31) is better than 72.03% of its industry peers.
ROOT has a Quick Ratio of 0.31. 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 0.31. This is in the better half of the industry: ROOT outperforms 72.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
ROOT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.72%, which is quite impressive.
The Revenue has grown by 158.57% 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 32.31% yearly.
EPS 1Y (TTM)116.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%179.27%
Revenue 1Y (TTM)158.57%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%67.71%
3.2 Future
ROOT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.35% yearly.
ROOT is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.30% yearly.
EPS Next Y-124.34%
EPS Next 2Y-19.02%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue Next Year14.08%
Revenue Next 2Y13.2%
Revenue Next 3Y13.9%
Revenue Next 5Y-8.3%
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 75.87, the valuation of ROOT can be described as expensive.
Based on the Price/Earnings ratio, ROOT is valued expensively inside the industry as 83.92% of the companies are valued cheaper.
ROOT is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Forward Price/Earnings Ratio is negative for ROOT. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.87 | ||
| Fwd PE | N/A |
4.2 Price Multiples
ROOT's Enterprise Value to EBITDA ratio is in line with the industry average.
ROOT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.72 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-19.02%
EPS Next 3Y6.35%
5. Dividend
5.1 Amount
No dividends for ROOT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
129.74
+1.62 (+1.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners68.53%
Inst Owner Change0%
Ins Owners3.86%
Ins Owner Change-0.09%
Market Cap1.97B
Analysts76.67
Price Target98.53 (-24.06%)
Short Float %13.41%
Short Ratio2.44
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)2
Avg EPS beat(2)310.61%
Min EPS beat(2)234.71%
Max EPS beat(2)386.52%
EPS beat(4)4
Avg EPS beat(4)191.79%
Min EPS beat(4)62.56%
Max EPS beat(4)386.52%
EPS beat(8)7
Avg EPS beat(8)104.68%
EPS beat(12)11
Avg EPS beat(12)77.11%
EPS beat(16)14
Avg EPS beat(16)58.88%
Revenue beat(2)2
Avg Revenue beat(2)9.97%
Min Revenue beat(2)9.86%
Max Revenue beat(2)10.07%
Revenue beat(4)4
Avg Revenue beat(4)12.24%
Min Revenue beat(4)6.71%
Max Revenue beat(4)22.33%
Revenue beat(8)8
Avg Revenue beat(8)20.65%
Revenue beat(12)10
Avg Revenue beat(12)14.02%
Revenue beat(16)13
Avg Revenue beat(16)14.47%
PT rev (1m)13.65%
PT rev (3m)27.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)741.76%
EPS NY rev (1m)-50.93%
EPS NY rev (3m)25.16%
Revenue NQ rev (1m)3.09%
Revenue NQ rev (3m)4.47%
Revenue NY rev (1m)2.48%
Revenue NY rev (3m)5.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.87 | ||
| Fwd PE | N/A | ||
| P/S | 1.68 | ||
| P/FCF | 10.72 | ||
| P/OCF | 10.08 | ||
| P/B | 6.25 | ||
| P/tB | 6.25 | ||
| EV/EBITDA | 15.83 |
EPS(TTM)1.71
EY1.32%
EPS(NY)-0.42
Fwd EYN/A
FCF(TTM)12.1
FCFY9.33%
OCF(TTM)12.88
OCFY9.92%
SpS77.4
BVpS20.77
TBVpS20.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.54% | ||
| ROE | 7.29% | ||
| ROCE | 5.95% | ||
| ROIC | 4.7% | ||
| ROICexc | 8.16% | ||
| ROICexgc | 11.26% | ||
| OM | 7.16% | ||
| PM (TTM) | 1.95% | ||
| GM | N/A | ||
| FCFM | 15.63% |
ROA(3y)-10.55%
ROA(5y)-18.35%
ROE(3y)-40.11%
ROE(5y)-47.17%
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-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 79.19% | ||
| Cap/Sales | 1% | ||
| Interest Coverage | 1.92 | ||
| Cash Conversion | 197.48% | ||
| Profit Quality | 799.57% | ||
| Current Ratio | 0.31 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 0.36 |
F-Score7
WACC9.56%
ROIC/WACC0.49
Cap/Depr(3y)75.66%
Cap/Depr(5y)79.53%
Cap/Sales(3y)2.11%
Cap/Sales(5y)2.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)116.72%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%179.27%
EPS Next Y-124.34%
EPS Next 2Y-19.02%
EPS Next 3Y6.35%
EPS Next 5YN/A
Revenue 1Y (TTM)158.57%
Revenue growth 3Y50.46%
Revenue growth 5Y32.31%
Sales Q2Q%67.71%
Revenue Next Year14.08%
Revenue Next 2Y13.2%
Revenue Next 3Y13.9%
Revenue Next 5Y-8.3%
EBIT growth 1Y193.45%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year33.98%
EBIT Next 3Y39.28%
EBIT Next 5Y37.65%
FCF growth 1Y527.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y682.44%
OCF growth 3YN/A
OCF growth 5YN/A