ROOT
Root, Inc.
ROOT's fundamentals are mixed, but it looks cheap: trading at 9.1x earnings, about half its usual 19x. Analysts expect earnings growth.
ROOT Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Healthy | |
| N/A | |
| N/A |
ROOT's profitability is currently healthy, and its revenue is stable. Free cash flow and net leverage aren't meaningful measures for financial services companies like ROOT.
ROOT PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 9.1x | $43.63 | — |
| Cheap | 15x | $73.79 | +69% |
| Fair | 19x | $89.09 | +104% |
| Forward | 19x | $43.63 | — |
| Expensive | 40x | $189 | +334% |
Historical ranges are pointers, not guarantees.
ROOT's PE is in its cheap range at 9.1x. On analysts' estimates for next year's earnings, today's price would be 19x, in its fair range.
ROOT Forward outlook
| Metric | Outlook |
|---|---|
| Strongly deteriorating | |
| Growth | |
| Stable | |
| Stable | |
| Limited | |
| High |
Analysts expect ROOT's earnings to grow, with its revenue and profitability holding steady.
ROOT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $2.33 | -51% |
| Q3 2026 | $4.79 | +40% |
| Q2 2026 | $3.58 | -30% |
| Q1 2026 | $3.38 | +1.8% |
| Q4 2025 | $2.36 | +29% |
| Q3 2025 | $3.43 | +$4.67 |
| Q2 2025 | $5.13 | +$10.88 |
| Q1 2025 | $3.32 | +$11.10 |
| Q4 2024 | $1.83 | +$12.07 |
ROOT earned $4.79 per share over the past year, up 40% from the year before.
ROOT Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $381.3M | -1.7% |
| Q2 2026 | $389.2M | +1.6% |
| Q1 2026 | $393.5M | +13% |
| Q4 2025 | $397M | +22% |
| Q3 2025 | $387.8M | +27% |
| Q2 2025 | $382.9M | +32% |
| Q1 2025 | $349.4M | +37% |
| Q4 2024 | $326.7M | +68% |
ROOT's revenue is growing: $381M last quarter, down 1.7% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 4.8% | +4.7 points |
| Q2 2026 | 8.9% | +1.8 points |
| Q1 2026 | 10% | +3.6 points |
| Q4 2025 | 2.6% | -8 points |
| Q3 2025 | 0.1% | -11 points |
| Q2 2025 | 7.1% | +5.8 points |
| Q1 2025 | 6.8% | +4.7 points |
| Q4 2024 | 11% | +17 points |
ROOT's operating margin was 4.8% last quarter, up 4.7 points from the same quarter a year ago.
ROOT Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | $57.5M | +11% |
| Q1 2026 | $9.3M | -65% |
| Q4 2025 | $70.1M | +1.3% |
| Q3 2025 | $57.6M | +17% |
| Q2 2025 | $52M | -17% |
| Q1 2025 | $26.8M | +87% |
| Q4 2024 | $69.2M | +50% |
| Q3 2024 | $49.4M | +238% |
ROOT's free cash flow was $195M over the past year, down 1.5% from the year before. Free cash flow isn't a meaningful measure for financial services companies like ROOT.
ROOT Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -1.2% | -200K shares |
| 1 year | +9.1% | +1.4M shares |
| 3 years | +16% | +2.3M shares |
| 5 years | +21% | +2.9M shares |
| Available history | +48% | +5.4M shares |
ROOT has 17M diluted shares, up 9.1% from a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | $15.5M |
| Q4 2021 | — |
| Q3 2021 | — |
| Q4 2020 | — |
| Q2 2020 | — |
| Q1 2020 | — |
| Q4 2019 | — |
ROOT Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -3.4x | Net Cash |
| Q2 2026 | -3.1x | Net Cash |
| Q1 2026 | -4.3x | Net Cash |
| Q4 2025 | -6.4x | Net Cash |
| Q3 2025 | -4.6x | Net Cash |
| Q2 2025 | -3.3x | Net Cash |
| Q1 2025 | -3.7x | Net Cash |
| Q4 2024 | -4.3x | Net Cash |
ROOT has more cash than debt. Net leverage isn't a meaningful measure for financial services companies like ROOT.
ROOT Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 37.0 | Neutral |
| Stochastic | 17.5 | Oversold |
ROOT's weekly RSI is 37 (neutral) and its Stochastic is 17 (oversold).
ROOT PE vs Financial Services Sector
| Metric | ROOT | Sector median | Relative |
|---|---|---|---|
| PE | 9.1x | 13x | 30% below |
| PE % | 1 | 61 | 60 pts below |
ROOT is trading at 9.1x earnings, a 30% discount to the Financial Services sector's median of 13x.
ROOT Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $48.1 | 9.3% below |
| 20 week MA | $52.9 | 18% below |
| 50 week MA | $56.4 | 23% below |
| 100 week MA | $82.9 | 47% below |
| 200 week MA | $56.1 | 22% below |
ROOT is in a downtrend: it's below all five of its weekly moving averages, and 22% below its 200-week average.
ROOT Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $431.5 | $309.1 | -28% |
| 2021 | $309.1 | $58.3 | -81% |
| 2022 | $58.3 | $4.64 | -92% |
| 2023 | $4.64 | $10.5 | +126% |
| 2024 | $10.5 | $73.0 | +597% |
| 2025 | $73.0 | $73.2 | +0.3% |
| 2026 YTD | $73.2 | $43.6 | -40% |
ROOT's yearly returns have swung widely, from +597% in 2024 to −92% in 2022. It's down 40% so far in 2026.