Root (ROOT) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Root

NasdaqGS•Financial Services•Insurance - Property & Casualty

$53.49+0.69(0.01%)Market closed

Market Cap

$841.52M

P/E

13.8x

P/S

0.5x

P/B

2.6x

Root, Inc. provides insurance products and services in the United States. The company offers automobile and renters insurance products primarily through websites, mobile applications, and partnership channels. Root, Inc. was incorporated in 2015 and is headquartered in Columbus, Ohio.

How this company scores

GoodMetricSide Score: 66/100

Strongest: Balance Sheet & Red Flags (23/25); weakest: Profitability (12/25).

Profitability12/25

Growth13/25

Balance Sheet & Red Flags23/25

Cash & Earnings Quality18/25

Strengths

High ROEInterest easily coveredCash-backed earningsConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 13.8x5y range 11.7x – 36.5x

Currently below its 7-quarter median.

P/S · 0.5x5y range 0.4x – 29.2x

Currently below its 20-quarter median.

P/B · 2.6x5y range 1.7x – 26.2x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 38.6% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Share Dilution

Watch

Shares outstanding rose 4.7% — mild dilution. Compare to earnings growth to assess the net per-share impact.

Price & Volume

Market Cap $841.52M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.57B
Q. Revenue: $389.20M
TTM EBITDA: $106.60M
TTM Op. Income: $86.30M
Q. Op. Income: $34.60M
TTM Net Income: $61.20M
Q. Net Income: $25.40M
EPS: $1.54
Shares Out.: $15.70M

$1.57B in TTM revenue grew 14.9% YoY, reaching $389.20M last quarter. TTM EBITDA of $106.60M and TTM operating income of $86.30M show growth is flowing through to the bottom line. TTM net income of $61.20M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 9.6%
Op. Margin: 8.9%
Net Margin: 6.5%

Op. margin of 8.9% is up 1.8% YoY — cost efficiency is improving. Net margin at 6.5% Over the past year, operating margin is up 25% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 13.8x
P/S Ratio: 0.5x
P/B Ratio: 2.6x

At 13.8x P/E, the stock trades below typical market levels. P/S of 0.5x and P/B of 2.6x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is down 40% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $1.67B
Cash: $509.60M
Long-Term Debt: $197.80M
Book Value: $327.90M
D/E Ratio: 0.6
Debt/EBITDA: 5.3

With $1.67B in assets and $197.80M in long-term debt, D/E is 0.6and book value is $327.90M — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 7 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $57.50M
TTM Free Cash Flow: $179.20M
FCF Margin: 11.4%
FCF / Net Income: 2.9

TTM FCF of $179.20M on $57.50M in operating cash flow. The FCF / Net Income ratio of 2.9x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is down 3% — an improving trend.