(ROOT) Root - Overview
Exchange: NASDAQ •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US77664L2079
Stock: Auto, Renters, App
Total Rating 27
Risk 39
Buy Signal -0.65
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 76.2% |
| Relative Tail Risk | -14.7% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.35 |
| Alpha | -70.05 |
| Character TTM | |
|---|---|
| Beta | 2.050 |
| Beta Downside | 1.180 |
| Drawdowns 3y | |
|---|---|
| Max DD | 67.54% |
| CAGR/Max DD | 1.81 |
Description: ROOT Root January 14, 2026
Root, Inc. (NASDAQ: ROOT) is a U.S.-based insurer that sells automobile and renters policies directly to consumers through its mobile app and website, supplementing this channel with digital media, independent agents, referrals, and partnership agreements. The company, incorporated in 2015 and headquartered in Columbus, Ohio, operates within the Property & Casualty Insurance sub-industry.
In 2023, Root reported approximately $1.2 billion in written premium, with a loss ratio of 78% and a combined ratio just above 100%, reflecting ongoing profitability challenges typical for growth-stage usage-based insurers. The firm’s churn rate for auto policies hovered around 30% year-over-year, while its net promoter score (NPS) consistently ranked in the high-70s, indicating strong customer satisfaction despite pricing volatility.
Key sector drivers include the accelerating adoption of telematics and usage-based insurance (UBI), which is projected to capture 15% of the U.S. personal auto market by 2027, and rising auto insurance premiums driven by higher vehicle repair costs and inflation. For a deeper, data-driven valuation, you might explore ValueRay’s analyst tools.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 57.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 1.45 > 1.0 |
| NWC/Revenue: 48.69% < 20% (prev 71.25%; Δ -22.57% < -1%) |
| CFO/TA 0.13 > 3% & CFO 205.6m > Net Income 57.1m |
| Net Debt (-452.9m) to EBITDA (92.3m): -4.91 < 3 |
| Current Ratio: 3.34 > 1.5 & < 3 |
| Outstanding Shares: last quarter (15.4m) vs 12m ago -8.88% < -2% |
| Gross Margin: 27.22% > 18% (prev 0.27%; Δ 2695 % > 0.5%) |
| Asset Turnover: 90.30% > 50% (prev 66.88%; Δ 23.42% > 0%) |
| Interest Coverage Ratio: 3.47 > 6 (EBITDA TTM 92.3m / Interest Expense TTM 23.3m) |
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 -1.65b / Total Assets 1.64b) |
| 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) |
| Altman-Z'' Score: -1.37 = CCC |
Beneish M -2.97
| DSRI: 0.76 (Receivables 494.8m/469.3m, Revenue 1.45b/1.04b) |
| GMI: 0.99 (GM 27.22% / 26.82%) |
| AQI: 1.14 (AQ_t 0.39 / AQ_t-1 0.34) |
| SGI: 1.39 (Revenue 1.45b / 1.04b) |
| TATA: -0.09 (NI 57.1m - CFO 205.6m) / TA 1.64b) |
| Beneish M-Score: -2.97 (Cap -4..+1) = A |
What is the price of ROOT shares?
As of February 08, 2026, the stock is trading at USD 62.08 with a total of 479,403 shares traded.
Over the past week, the price has changed by -0.08%, over one month by -16.39%, over three months by -23.37% and over the past year by -43.41%.
Over the past week, the price has changed by -0.08%, over one month by -16.39%, over three months by -23.37% and over the past year by -43.41%.
Is ROOT a buy, sell or hold?
Root has received a consensus analysts rating of 3.50.
Therefor, it is recommend to hold ROOT.
- StrongBuy: 1
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the ROOT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 111.6 | 79.8% |
| Analysts Target Price | 111.6 | 79.8% |
| ValueRay Target Price | 58.8 | -5.2% |
ROOT Fundamental Data Overview February 05, 2026
P/E Trailing = 18.4107
P/E Forward = 2.3753
P/S = 0.6631
P/B = 3.6209
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 = 148.7m USD (959.4m + Debt 200.4m - CCE 1.01b)
Interest Coverage Ratio = 3.47 (Ebit TTM 80.8m / Interest Expense TTM 23.3m)
EV/FCF = 0.76x (Enterprise Value 148.7m / FCF TTM 195.3m)
FCF Yield = 131.4% (FCF TTM 195.3m / Enterprise Value 148.7m)
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 = 0.09 (Enterprise Value 148.7m / Total Assets 1.64b)
Interest Expense / Debt = 2.64% (Interest Expense 5.30m / Debt 200.4m)
Taxrate = 0.0% (0.0 / 30.9m)
NOPAT = 80.8m (EBIT 80.8m * (1 - 0.00%))
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 = 3.56% (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 = 18.55% (NOPAT 80.8m / Invested Capital 435.6m)
WACC = 11.60% (E(959.4m)/V(1.16b) * Re(13.47%) + D(200.4m)/V(1.16b) * Rd(2.64%) * (1-Tc(0.0)))
Discount Rate = 13.47% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 2.70%
[DCF Debug] Terminal Value 55.95% ; FCFF base≈182.4m ; Y1≈119.7m ; Y5≈54.6m
Fair Price DCF = 81.75 (EV 667.3m - Net Debt -452.9m = Equity 1.12b / Shares 13.7m; r=11.60% [WACC]; 5y FCF grow -40.0% → 2.90% )
EPS Correlation: 86.69 | EPS CAGR: 45.28% | 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=+0.000 | Revisions Net=+1 | Analysts=1
EPS next Year (2026-12-31): EPS=2.72 | Chg30d=+0.160 | Revisions Net=+1 | Growth EPS=+24.2% | Growth Revenue=+6.1%
P/E Forward = 2.3753
P/S = 0.6631
P/B = 3.6209
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 = 148.7m USD (959.4m + Debt 200.4m - CCE 1.01b)
Interest Coverage Ratio = 3.47 (Ebit TTM 80.8m / Interest Expense TTM 23.3m)
EV/FCF = 0.76x (Enterprise Value 148.7m / FCF TTM 195.3m)
FCF Yield = 131.4% (FCF TTM 195.3m / Enterprise Value 148.7m)
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 = 0.09 (Enterprise Value 148.7m / Total Assets 1.64b)
Interest Expense / Debt = 2.64% (Interest Expense 5.30m / Debt 200.4m)
Taxrate = 0.0% (0.0 / 30.9m)
NOPAT = 80.8m (EBIT 80.8m * (1 - 0.00%))
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 = 3.56% (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 = 18.55% (NOPAT 80.8m / Invested Capital 435.6m)
WACC = 11.60% (E(959.4m)/V(1.16b) * Re(13.47%) + D(200.4m)/V(1.16b) * Rd(2.64%) * (1-Tc(0.0)))
Discount Rate = 13.47% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 2.70%
[DCF Debug] Terminal Value 55.95% ; FCFF base≈182.4m ; Y1≈119.7m ; Y5≈54.6m
Fair Price DCF = 81.75 (EV 667.3m - Net Debt -452.9m = Equity 1.12b / Shares 13.7m; r=11.60% [WACC]; 5y FCF grow -40.0% → 2.90% )
EPS Correlation: 86.69 | EPS CAGR: 45.28% | 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=+0.000 | Revisions Net=+1 | Analysts=1
EPS next Year (2026-12-31): EPS=2.72 | Chg30d=+0.160 | Revisions Net=+1 | Growth EPS=+24.2% | Growth Revenue=+6.1%