ROOT Stock Analysis: Root | NASDAQ
Insurance - Property & Casualty | NASDAQ, USA | Market Cap: 977m USD | 12M Return: -47.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 14.5M
Qual. Beats: 1
Rev. Trend: 94.5%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 5.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Root, Inc. is a U.S.-based property and casualty insurer that distributes auto and renters insurance primarily through digital channels, including its website and mobile applications, as well as partnership arrangements. Incorporated in 2015 and headquartered in Columbus, Ohio, the company went public on NASDAQ in late October 2020 and operates within the Financials sector.
As a Property & Casualty insurer, Root collects premiums from policyholders and assumes risk in exchange for coverage, with profitability dependent on underwriting discipline and the ratio of claims paid out versus premiums earned. The company is part of the broader insurtech segment of the P&C industry, in which carriers use technology and data-driven methods to price and underwrite policies rather than relying solely on traditional demographic-based rating factors.
- Auto insurance hard market pricing drives loss ratio improvement
- Partnership channel expansion with auto dealers accelerates policyholder growth
- Reinsurance program renewal affects capital position and growth runway
| Net Income: 57.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -2.87 > 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 29.92%; Δ -1.30% > 0.5%) |
| Asset Turnover: 105.1% > 50% (prev 90.34%; Δ 14.80% > 0%) |
| Interest Coverage Ratio: 3.85 > 6 (EBIT TTM 79.0m / 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: 0.39 (Book Value of Equity 437.9m / Total Liabilities 1.12b) |
| Altman-Z'' = -0.19 = B |
| DSRI: 0.79 (Receivables 350.8m/360.7m, Revenue 1.56b/1.27b) |
| GMI: 1.05 (GM 29.92% / 28.62%) |
| 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 = -2.85 (Cap -4..+1) = A |
As of July 10, 2026, the stock is trading at USD 64.40 with a total of 166,525 shares traded. Over the past week, the price has changed by +7.32%, over one month by +19.59%, over three months by +38.14% and over the past year by -47.90%.
Current recommended Stop Loss: 57.20 (which is 11.2% or 2.1 ATR below the current price).
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 | 66.8 | 3.7% |
P/E Trailing = 18.2633
P/E Forward = 1.7007
P/S = 0.6258
P/B = 2.9142
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 = 568.4m USD (977.0m + Debt 200.3m - CCE 608.9m)
Interest Coverage Ratio = 3.85 (Ebit TTM 79.0m / Interest Expense TTM 20.5m)
EV/FCF = 3.28x (Enterprise Value 568.4m / FCF TTM 173.4m)
FCF Yield = 30.51% (FCF TTM 173.4m / Enterprise Value 568.4m)
FCF Margin = 11.11% (FCF TTM 173.4m / 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 = 0.36 (Enterprise Value 568.4m / Total Assets 1.56b)
Interest Expense / Debt = 10.23% (Interest Expense 20.5m / Debt 200.3m)
Taxrate = 1.37% (800k / 58.5m)
NOPAT = 77.9m (EBIT 79.0m * (1 - 1.37%))
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 = -2.36 (Net Debt -408.6m / FCF TTM 173.4m)
Total Stockholder Equity = 391.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.89% (Net Income 57.8m / Total Assets 1.56b)
RoE = 14.75% (Net Income TTM 57.8m / Total Stockholder Equity 391.9m)
RoCE = 13.34% (EBIT 79.0m / Capital Employed (Equity 391.9m + L.T.Debt 200.3m))
RoIC = 7.10% (NOPAT 77.9m / Invested Capital 1.10b)
WACC = 9.30% (E(977.0m)/V(1.18b) * Re(9.14%) + D(200.3m)/V(1.18b) * Rd(10.23%) * (1-Tc(0.01)))
Discount Rate = 9.14% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 72.17 | Cagr: 7.56%
[DCF] Terminal Value 70.23% ; FCFF base≈182.6m ; Y1≈165.2m ; Y5≈142.1m
[DCF] Fair Price = 168.5 (EV 1.95b - Net Debt -408.6m = Equity 2.36b / Shares 14.0m; r=9.30% [WACC]; 5y FCF grow -11.76% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.71 | # 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=-25% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.39 | Chg30d=+1.32% | Revisions=-25% | Analysts=2
EPS current Year (2026-12-31): EPS=3.21 | Chg30d=+45.48% | Revisions=+0% | GrowthEPS=-3.8% | GrowthRev=+4.8%
EPS next Year (2027-12-31): EPS=3.05 | Chg30d=-19.74% | Revisions=-25% | GrowthEPS=-5.1% | GrowthRev=+7.2%
[Analyst] Revisions Ratio: -50% (up=0, down=3)