(ROOT) Root - Overview
Sector: Financial Services | Industry: Insurance - Property & Casualty | Exchange: NASDAQ (USA) | Market Cap: 908m USD | Total Return: -56.7% in 12m
Avg Turnover: 14.1M
Qual. Beats: 1
Rev. Trend: 94.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Root, Inc. is a technology-driven insurance provider based in Columbus, Ohio, specializing in automobile and renters insurance. The company utilizes a direct-to-consumer model, distributing its products through mobile applications, websites, and strategic partnerships.
As a participant in the InsurTech sector, the company leverages telematics data to assess individual driving behavior for risk pricing rather than relying solely on traditional demographic variables. This digital-first approach aims to reduce operational overhead compared to legacy carriers that maintain extensive physical agent networks.
Investors can further evaluate the companys financial health and market positioning by reviewing the comprehensive data sets available on ValueRay.
- Embedded insurance partnership expansion drives scalable customer acquisition growth
- Loss ratio improvements through telematics data refine underwriting profitability
- Higher interest rates increase investment income on insurance float reserves
- Regulatory scrutiny of pricing algorithms impacts multi-state expansion strategy
- Marketing spend efficiency determines path toward sustained GAAP net profitability
| Net Income: 57.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -2.62 > 1.0 |
| NWC/Revenue: 36.51% < 20% (prev 44.98%; Δ -8.47% < -1%) |
| CFO/TA 0.12 > 3% & CFO 189.0m > Net Income 57.8m |
| Net Debt (-408.6m) to EBITDA (91.9m): -4.45 < 3 |
| Current Ratio: 2.46 > 1.5 & < 3 |
| Outstanding Shares: last quarter (17.2m) vs 12m ago 0.0% < -2% |
| Gross Margin: 28.62% > 18% (prev 0.30%; Δ 2.83k% > 0.5%) |
| Asset Turnover: 105.1% > 50% (prev 90.34%; Δ 14.80% > 0%) |
| Interest Coverage Ratio: 3.85 > 6 (EBITDA TTM 91.9m / Interest Expense TTM 20.5m) |
| A: 0.36 (Total Current Assets 959.7m - Total Current Liabilities 389.7m) / Total Assets 1.56b |
| B: -1.03 (Retained Earnings -1.61b / Total Assets 1.56b) |
| C: 0.05 (EBIT TTM 79.0m / Avg Total Assets 1.48b) |
| D: -1.43 (Book Value of Equity -1.61b / Total Liabilities 1.12b) |
| Altman-Z'' = -2.10 = D |
| DSRI: 0.79 (Receivables 350.8m/360.7m, Revenue 1.56b/1.27b) |
| GMI: 1.05 (GM 28.62% / 29.92%) |
| AQI: 1.25 (AQ_t 0.38 / AQ_t-1 0.31) |
| SGI: 1.23 (Revenue 1.56b / 1.27b) |
| TATA: -0.08 (NI 57.8m - CFO 189.0m) / TA 1.56b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of May 26, 2026, the stock is trading at USD 57.38 with a total of 299,300 shares traded.
Over the past week, the price has changed by +3.63%,
over one month by +2.63%,
over three months by -6.07% and
over the past year by -56.66%.
Root has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold ROOT.
- StrongBuy: 1
- Buy: 1
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 79.8 | 39.1% |
P/E Trailing = 16.9763
P/E Forward = 1.7007
P/S = 0.5817
P/B = 2.7923
Revenue TTM = 1.56b USD
EBIT TTM = 79.0m USD
EBITDA TTM = 91.9m USD
Long Term Debt = 200.3m USD (from longTermDebt, last quarter)
Short Term Debt = 2.30m USD (from shortTermDebt, last fiscal year)
Debt = 200.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -408.6m USD (calculated: Debt 200.3m - CCE 608.9m)
Enterprise Value = 499.5m USD (908.1m + Debt 200.3m - CCE 608.9m)
Interest Coverage Ratio = 3.85 (Ebit TTM 79.0m / Interest Expense TTM 20.5m)
EV/FCF = 2.82x (Enterprise Value 499.5m / FCF TTM 177.4m)
FCF Yield = 35.51% (FCF TTM 177.4m / Enterprise Value 499.5m)
FCF Margin = 11.36% (FCF TTM 177.4m / Revenue TTM 1.56b)
Net Margin = 3.70% (Net Income TTM 57.8m / Revenue TTM 1.56b)
Gross Margin = 28.62% ((Revenue TTM 1.56b - Cost of Revenue TTM 1.11b) / Revenue TTM)
Gross Margin QoQ = 42.52% (prev 24.28%)
Tobins Q-Ratio = 0.32 (Enterprise Value 499.5m / Total Assets 1.56b)
Interest Expense / Debt = 10.23% (Interest Expense 20.5m / Debt 200.3m)
Taxrate = 0.55% (200k / 36.1m)
NOPAT = 78.6m (EBIT 79.0m * (1 - 0.55%))
Current Ratio = 2.46 (Total Current Assets 959.7m / Total Current Liabilities 389.7m)
Debt / Equity = 0.46 (Debt 200.3m / totalStockholderEquity, last quarter 437.9m)
Debt / EBITDA = -4.45 (Net Debt -408.6m / EBITDA 91.9m)
Debt / FCF = -2.30 (Net Debt -408.6m / FCF TTM 177.4m)
Total Stockholder Equity = 391.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.89% (Net Income 57.8m / Total Assets 1.56b)
RoE = 2.89% (Net Income TTM 57.8m / Total Stockholder Equity 2.00b)
RoCE = 3.59% (EBIT 79.0m / Capital Employed (Equity 2.00b + L.T.Debt 200.3m))
RoIC = 6.68% (NOPAT 78.6m / Invested Capital 1.18b)
WACC = 9.52% (E(908.1m)/V(1.11b) * Re(9.37%) + D(200.3m)/V(1.11b) * Rd(10.23%) * (1-Tc(0.01)))
Discount Rate = 9.37% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 72.17 | Cagr: 7.56%
[DCF] Terminal Value 69.86% ; FCFF base≈185.0m ; Y1≈170.6m ; Y5≈152.4m
[DCF] Fair Price = 173.5 (EV 2.02b - Net Debt -408.6m = Equity 2.43b / Shares 14.0m; r=9.52% [WACC]; 5y FCF grow -9.72% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.77 | # QB: 1
Revenue Correlation: 94.53 | Revenue CAGR: 88.71% | SUE: -0.08 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.66 | Chg30d=-1.49% | Revisions=-20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.39 | Chg30d=+1.32% | Revisions=-20% | Analysts=2
EPS current Year (2026-12-31): EPS=3.21 | Chg30d=+45.48% | Revisions=N/A | GrowthEPS=-3.8% | GrowthRev=+5.2%
EPS next Year (2027-12-31): EPS=3.05 | Chg30d=-19.74% | Revisions=-20% | GrowthEPS=-5.1% | GrowthRev=+9.4%
[Analyst] Revisions Ratio: -20%