A Business at a Glance
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Root, Inc.
ROOT
$940M
Mkt Cap
$57.95
+0.71%
Root, Inc. (ROOT) has a current P/E ratio of 24.6, compared to its historical median P/E of 35.5. The stock is currently considered Cheap based on its historical valuation range.
Root, Inc. (ROOT) has a 5-year average return on invested capital (ROIC) of -25.2%. This is below average and may indicate limited pricing power.
Root, Inc. (ROOT) has a market capitalization of $997M. It is classified as a small-cap stock.
Root, Inc. (ROOT) does not currently pay a regular dividend.
Based on historical P/E analysis, Root, Inc. (ROOT) appears cheap. The current P/E of 24.6 is 31% below its historical median of 35.5. The estimated fair value CAGR (P/E method) is 21.5%.
Root, Inc. (ROOT) operates in the Fire, Marine & Casualty Insurance industry, within the Financials sector.
Root, Inc. (ROOT) reported annual revenue of $1.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
Root is a technology insurance company founded on the idea that car insurance rates should be based primarily on driving behaviors, not demographics. We are revolutionizing the archaic car insurance industry by using modern technology, data science, and telematics to offer fair, personalized rates to good drivers. We primarily reach customers through two channels: our direct channel, where we target consumers with what we believe to be a great insurance product at a great price, and through our partnership channel, where we meet consumers at contextually relevant times, such as during the car purchasing experience or through independent insurance agents. Our primary focus is the United States personal auto insurance market. We have built our company around the principle that each individual has unique behaviors and that customers should be in control and rewarded for their actions.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.6B | 1.5B | 1.2B | 455M | 311M | 345M |
| Net Income | 55M | 38M | 29M | -147M | -298M | -521M |
| EPS | $3.20 | $2.36 | $1.83 | $-10.24 | $-21.11 | $-37.76 |
| Free Cash Flow | 0 | 207M | 195M | -34M | -211M | -408M |
| ROIC | 4.6% | 8.6% | 6.7% | -28.4% | -53.7% | -59.4% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.61 | 0.70 | 0.98 | 1.80 | 1.07 | 0.00 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 79M | 62M | 79M | -101M | -263M | -485M |
| Operating Margin | 5.1% | 4.1% | 6.7% | -22.3% | -84.7% | -140.5% |
| ROE | 16.9% | 15.7% | 15.8% | -66.6% | -73.2% | -66.5% |
| Shares Outstanding | 17M | 16M | 16M | 14M | 14M | 14M |
| Metric | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||
| Revenue | 43M | 290M | 347M | 345M | 311M | 455M | 1.2B | 1.5B | 1.6B |
| Gross Margin | 0.0% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 9.3M | 43M | 79M | 98M | 127M | 83M | 70M | 97M | 101M |
| EBIT | -69M | -260M | -285M | -485M | -263M | -101M | 79M | 62M | 79M |
| Op. Margin | -159.6% | -89.6% | -82.3% | -140.5% | -84.7% | -22.3% | 6.7% | 4.1% | 5.1% |
| Net Income | -69M | -282M | -363M | -521M | -298M | -147M | 29M | 38M | 55M |
| Net Margin | -159.6% | -97.3% | -104.7% | -150.9% | -95.8% | -32.4% | 2.5% | 2.5% | 3.5% |
| Non-Recurring | 0 | 0 | 0 | 0 | 11M | 11M | 100K | 0 | 0 |
| Returns on Capital | |||||||||
| ROIC | N/M | -28.2% | -70.0% | -59.4% | -53.7% | -28.4% | 6.7% | 8.6% | 4.6% |
| ROE | 101.4% | 118.5% | -110.4% | -66.5% | -73.2% | -66.6% | 15.8% | 15.7% | 16.9% |
| ROA | -2559.3% | -77.2% | -29.1% | -33.8% | -22.6% | -11.1% | 2.1% | 2.4% | 3.3% |
| Cash Flow | |||||||||
| Op. Cash Flow | -26M | -127M | -287M | -403M | -211M | -34M | 196M | 207M | 189M |
| Free Cash Flow | -27M | -134M | -289M | -408M | -211M | -34M | 195M | 207M | 0 |
| Owner Earnings | -27M | -131M | -296M | -433M | -243M | -52M | 176M | 166M | 136M |
| CapEx | 1.2M | 6.6M | 1.8M | 4.6M | 0 | 200K | 400K | 0 | 0 |
| Maint. CapEx | 300K | 2.2M | 5.3M | 9.9M | 2.1M | 1.5M | 1.0M | 200K | 7.9M |
| Growth CapEx | 900K | 4.4M | 0 | 0 | N/A | 0 | 0 | N/A | 0 |
| D&A | 300K | 2.2M | 5.3M | 9.9M | 2.1M | 1.5M | 1.0M | 200K | 7.9M |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | 0.2% | N/A | 0.0% |
| Capital Allocation | |||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 200K | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | 0.0% | N/A | 0.0% | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 100K | 1.4M | 3.7M | 19M | 31M | 17M | 19M | 40M | 45M |
| Debt Repayment | 0 | 16M | 14M | 200M | 0 | 0 | 237M | 0 | 0 |
| Balance Sheet | |||||||||
| Net Debt | -122M | -322M | -1.1B | -836M | -596M | -547M | -399M | -469M | -397M |
| Cash & Equiv. | 122M | 392M | 1.1B | 706M | 762M | 679M | 599M | 669M | 597M |
| Long-Term Debt | 0 | 192M | 188M | 0 | 295M | 299M | 200M | 200M | 200M |
| Debt/Equity | 0.00 | -0.51 | 0.18 | 0.00 | 1.07 | 1.80 | 0.98 | 0.70 | 0.61 |
| Interest Coverage | -76.8 | -11.7 | -3.7 | -24.3 | -7.6 | -2.2 | 1.9 | 2.9 | 3.9 |
| Equity | -103M | -374M | 1.0B | 536M | 277M | 166M | 204M | 284M | 326M |
| Total Assets | 2.7M | 729M | 1.8B | 1.3B | 1.3B | 1.3B | 1.5B | 1.7B | 1.7B |
| Total Liabilities | 105M | 542M | 730M | 671M | 924M | 1.1B | 1.2B | 1.3B | 1.2B |
| Intangibles | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | N/A | -385M | -748M | -1.3B | -1.6B | -1.7B | -1.7B | -1.6B | -1.6B |
| Working Capital | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||
| EPS | -2.73 | -8.33 | -86.43 | -37.76 | -21.11 | -10.24 | 1.83 | 2.36 | 3.20 |
| Owner EPS | -1.05 | -3.86 | -70.52 | -31.35 | -17.25 | -3.64 | 11.04 | 10.24 | 7.93 |
| Book Value | -4.06 | -11.03 | 245.58 | 38.87 | 19.65 | 11.51 | 12.77 | 17.52 | 18.95 |
| Cash Flow/Share | -1.03 | -3.75 | -68.38 | -29.23 | -14.93 | -2.33 | 12.26 | 12.72 | 3.66 |
| Dividends/Share | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 25.3M | 33.9M | 4.2M | 13.8M | 14.1M | 14.4M | 16.0M | 16.2M | 17.2M |
| Valuation | |||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | N/A | N/A | 39.9 | 31.0 | 18.1 |
| P/FCF | N/A | N/A | N/A | N/A | N/A | N/A | 6.0 | 5.8 | N/A |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | 9.6 | 11.6 | 7.6 |
| Price/Book | N/A | N/A | 4.3 | 1.4 | 0.2 | 0.9 | 5.7 | 4.2 | 3.1 |
| Price/Sales | N/A | N/A | 13.5 | 7.0 | 1.0 | 0.2 | 0.7 | 1.2 | 0.6 |
| FCF Yield | N/A | N/A | -6.5% | -53.7% | -359.0% | -22.3% | 16.8% | 17.4% | N/A |
| Market Cap | 0 | N/A | 4.4B | 760M | 59M | 152M | 1.2B | 1.2B | 997M |
| Avg. Price | 0.00 | N/A | 332.56 | 175.23 | 21.97 | 7.69 | 50.48 | 108.45 | 57.95 |
| Year-End Price | 0.00 | N/A | 314.82 | 55.08 | 4.16 | 10.55 | 73.00 | 73.24 | 57.95 |
Root, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Root, Inc. trades at 24.6x trailing earnings, compared to its 15-year median P/E of 35.5x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 3.9x vs a median of 5.9x. At current prices, the estimated annualized return to fair value is +30.3%.
Root, Inc. (ROOT) has a net profit margin of 2.5%. This is a modest margin.
Root, Inc. (ROOT) generated $207 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Root, Inc. (ROOT) has a debt-to-equity ratio of 0.70. This indicates moderate leverage.
Root, Inc. (ROOT) reported earnings per share (EPS) of $2.36 in its most recent fiscal year.
Root, Inc. (ROOT) has a return on equity (ROE) of 15.7%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 8 years of financial data for Root, Inc. (ROOT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Root, Inc. (ROOT) has a book value per share of $17.52, based on its most recent annual SEC filing.