(ROOT) Root - Ratings and Ratios
Exchange: NASDAQ •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US77664L2079
Auto, Renters, Mobile, Digital
Dividends
Currently no dividends paid| Risk via 10d forecast | |
|---|---|
| Volatility | 81.0% |
| Value at Risk 5%th | 111% |
| Relative Tail Risk | -16.68% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.35 |
| Alpha | -26.09 |
| CAGR/Max DD | 2.49 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.484 |
| Beta | 1.947 |
| Beta Downside | 1.380 |
| Drawdowns 3y | |
|---|---|
| Max DD | 61.15% |
| Mean DD | 28.18% |
| Median DD | 27.55% |
Description: ROOT Root November 11, 2025
Root, Inc. (NASDAQ: ROOT) is a U.S.-based insurer that sells auto and renters policies through a fully digital, direct-to-consumer platform. The company leverages mobile apps and its website as primary sales channels, supplemented by digital media, independent agents, referrals, and partnership arrangements. Founded in 2015 and headquartered in Columbus, Ohio, Root operates within the Property & Casualty insurance sub-industry.
Key performance indicators that analysts monitor include its **policy-in-force growth rate** (which has averaged roughly 30% YoY in 2023-24) and **combined ratio**, currently hovering near 95%, indicating modest underwriting profitability. A critical sector driver is the broader **U.S. auto insurance premium environment**, where rising vehicle prices and inflationary pressure on repair costs have lifted average premiums by about 4% year-over-year. Additionally, Root’s **usage-based pricing model**-which relies on telematics data-offers a potential cost advantage in a market increasingly focused on risk-adjusted pricing.
For a deeper, data-rich assessment of Root’s valuation dynamics, you might explore ValueRay’s analytical toolkit, which aggregates real-time financial metrics and scenario modeling to help surface hidden upside or downside risks.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (57.1m TTM) > 0 and > 6% of Revenue (6% = 86.8m TTM) |
| FCFTA 0.12 (>2.0%) and ΔFCFTA 1.45pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 48.69% (prev 71.25%; Δ -22.57pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.13 (>3.0%) and CFO 205.6m > Net Income 57.1m (YES >=105%, WARN >=100%) |
| Net Debt (-452.9m) to EBITDA (92.3m) ratio: -4.91 <= 3.0 (WARN <= 3.5) |
| Current Ratio 3.34 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (15.4m) change vs 12m ago -8.88% (target <= -2.0% for YES) |
| Gross Margin 27.22% (prev 26.82%; Δ 0.40pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 90.30% (prev 66.88%; Δ 23.42pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 3.47 (EBITDA TTM 92.3m / Interest Expense TTM 23.3m) >= 6 (WARN >= 3) |
Altman Z'' -1.37
| (A) 0.43 = (Total Current Assets 1.01b - Total Current Liabilities 301.4m) / Total Assets 1.64b |
| (B) -1.00 = Retained Earnings (Balance) -1.65b / Total Assets 1.64b |
| warn (B) unusual magnitude: -1.00 — check mapping/units |
| (C) 0.05 = EBIT TTM 80.8m / Avg Total Assets 1.60b |
| (D) -1.19 = Book Value of Equity -1.64b / Total Liabilities 1.38b |
| Total Rating: -1.37 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 88.31
| 1. Piotroski 6.50pt |
| 2. FCF Yield 49.88% |
| 3. FCF Margin 13.50% |
| 4. Debt/Equity 0.76 |
| 5. Debt/Ebitda -4.91 |
| 6. ROIC - WACC (= 8.32)% |
| 7. RoE 24.25% |
| 8. Rev. Trend 90.49% |
| 9. EPS Trend 90.15% |
What is the price of ROOT shares?
As of December 14, 2025, the stock is trading at USD 81.02 with a total of 218,634 shares traded.
Over the past week, the price has changed by +1.21%, over one month by -8.00%, over three months by -18.23% and over the past year by +6.24%.
Over the past week, the price has changed by +1.21%, over one month by -8.00%, over three months by -18.23% and over the past year by +6.24%.
Is ROOT a buy, sell or hold?
Root has received a consensus analysts rating of 3.50.
Therefor, it is recommend to hold ROOT.
- Strong Buy: 1
- Buy: 1
- Hold: 4
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the ROOT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 126.8 | 56.4% |
| Analysts Target Price | 126.8 | 56.4% |
| ValueRay Target Price | 79.1 | -2.4% |
ROOT Fundamental Data Overview December 05, 2025
Market Cap USD = 1.20b (1.20b USD * 1.0 USD.USD)
P/E Trailing = 23.0714
P/E Forward = 2.9533
P/S = 0.831
P/B = 4.5023
Beta = 2.643
Revenue TTM = 1.45b USD
EBIT TTM = 80.8m USD
EBITDA TTM = 92.3m USD
Long Term Debt = 200.4m USD (from longTermDebt, last quarter)
Short Term Debt = 2.20m USD (from shortTermDebt, last fiscal year)
Debt = 200.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -452.9m USD (from netDebt column, last quarter)
Enterprise Value = 391.6m USD (1.20b + Debt 200.4m - CCE 1.01b)
Interest Coverage Ratio = 3.47 (Ebit TTM 80.8m / Interest Expense TTM 23.3m)
FCF Yield = 49.88% (FCF TTM 195.3m / Enterprise Value 391.6m)
FCF Margin = 13.50% (FCF TTM 195.3m / Revenue TTM 1.45b)
Net Margin = 3.95% (Net Income TTM 57.1m / Revenue TTM 1.45b)
Gross Margin = 27.22% ((Revenue TTM 1.45b - Cost of Revenue TTM 1.05b) / Revenue TTM)
Gross Margin QoQ = 20.99% (prev 26.56%)
Tobins Q-Ratio = 0.24 (Enterprise Value 391.6m / Total Assets 1.64b)
Interest Expense / Debt = 2.64% (Interest Expense 5.30m / Debt 200.4m)
Taxrate = -8.0% (negative due to tax credits) (400.0k / -5.00m)
NOPAT = 87.3m (EBIT 80.8m * (1 - -8.00%)) [negative tax rate / tax credits]
Current Ratio = 3.34 (Total Current Assets 1.01b / Total Current Liabilities 301.4m)
Debt / Equity = 0.76 (Debt 200.4m / totalStockholderEquity, last quarter 265.0m)
Debt / EBITDA = -4.91 (Net Debt -452.9m / EBITDA 92.3m)
Debt / FCF = -2.32 (Net Debt -452.9m / FCF TTM 195.3m)
Total Stockholder Equity = 235.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.48% (Net Income 57.1m / Total Assets 1.64b)
RoE = 24.25% (Net Income TTM 57.1m / Total Stockholder Equity 235.5m)
RoCE = 18.54% (EBIT 80.8m / Capital Employed (Equity 235.5m + L.T.Debt 200.4m))
RoIC = 20.03% (NOPAT 87.3m / Invested Capital 435.6m)
WACC = 11.71% (E(1.20b)/V(1.40b) * Re(13.19%) + D(200.4m)/V(1.40b) * Rd(2.64%) * (1-Tc(-0.08)))
Discount Rate = 13.19% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 2.70%
[DCF Debug] Terminal Value 51.15% ; FCFE base≈182.4m ; Y1≈119.8m ; Y5≈54.8m
Fair Price DCF = 42.51 (DCF Value 582.5m / Shares Outstanding 13.7m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 90.15 | EPS CAGR: 152.0% | SUE: -0.11 | # QB: 0
Revenue Correlation: 90.49 | Revenue CAGR: 46.26% | SUE: 1.04 | # QB: 6
EPS next Quarter (2026-03-31): EPS=1.55 | Chg30d=+0.860 | Revisions Net=+1 | Analysts=1
EPS next Year (2026-12-31): EPS=2.56 | Chg30d=-0.010 | Revisions Net=-1 | Growth EPS=-0.8% | Growth Revenue=+5.9%
P/E Trailing = 23.0714
P/E Forward = 2.9533
P/S = 0.831
P/B = 4.5023
Beta = 2.643
Revenue TTM = 1.45b USD
EBIT TTM = 80.8m USD
EBITDA TTM = 92.3m USD
Long Term Debt = 200.4m USD (from longTermDebt, last quarter)
Short Term Debt = 2.20m USD (from shortTermDebt, last fiscal year)
Debt = 200.4m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -452.9m USD (from netDebt column, last quarter)
Enterprise Value = 391.6m USD (1.20b + Debt 200.4m - CCE 1.01b)
Interest Coverage Ratio = 3.47 (Ebit TTM 80.8m / Interest Expense TTM 23.3m)
FCF Yield = 49.88% (FCF TTM 195.3m / Enterprise Value 391.6m)
FCF Margin = 13.50% (FCF TTM 195.3m / Revenue TTM 1.45b)
Net Margin = 3.95% (Net Income TTM 57.1m / Revenue TTM 1.45b)
Gross Margin = 27.22% ((Revenue TTM 1.45b - Cost of Revenue TTM 1.05b) / Revenue TTM)
Gross Margin QoQ = 20.99% (prev 26.56%)
Tobins Q-Ratio = 0.24 (Enterprise Value 391.6m / Total Assets 1.64b)
Interest Expense / Debt = 2.64% (Interest Expense 5.30m / Debt 200.4m)
Taxrate = -8.0% (negative due to tax credits) (400.0k / -5.00m)
NOPAT = 87.3m (EBIT 80.8m * (1 - -8.00%)) [negative tax rate / tax credits]
Current Ratio = 3.34 (Total Current Assets 1.01b / Total Current Liabilities 301.4m)
Debt / Equity = 0.76 (Debt 200.4m / totalStockholderEquity, last quarter 265.0m)
Debt / EBITDA = -4.91 (Net Debt -452.9m / EBITDA 92.3m)
Debt / FCF = -2.32 (Net Debt -452.9m / FCF TTM 195.3m)
Total Stockholder Equity = 235.5m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.48% (Net Income 57.1m / Total Assets 1.64b)
RoE = 24.25% (Net Income TTM 57.1m / Total Stockholder Equity 235.5m)
RoCE = 18.54% (EBIT 80.8m / Capital Employed (Equity 235.5m + L.T.Debt 200.4m))
RoIC = 20.03% (NOPAT 87.3m / Invested Capital 435.6m)
WACC = 11.71% (E(1.20b)/V(1.40b) * Re(13.19%) + D(200.4m)/V(1.40b) * Rd(2.64%) * (1-Tc(-0.08)))
Discount Rate = 13.19% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 2.70%
[DCF Debug] Terminal Value 51.15% ; FCFE base≈182.4m ; Y1≈119.8m ; Y5≈54.8m
Fair Price DCF = 42.51 (DCF Value 582.5m / Shares Outstanding 13.7m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 90.15 | EPS CAGR: 152.0% | SUE: -0.11 | # QB: 0
Revenue Correlation: 90.49 | Revenue CAGR: 46.26% | SUE: 1.04 | # QB: 6
EPS next Quarter (2026-03-31): EPS=1.55 | Chg30d=+0.860 | Revisions Net=+1 | Analysts=1
EPS next Year (2026-12-31): EPS=2.56 | Chg30d=-0.010 | Revisions Net=-1 | Growth EPS=-0.8% | Growth Revenue=+5.9%
Additional Sources for ROOT Stock
News:
Wall Street Journal |
Benzinga |
Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle