Root Inc (ROOT) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Root Inc stock (ROOT) is currently trading at $47.10. Root Inc PE ratio is 19.32. Root Inc PS ratio (Price-to-Sales) is 0.47. Analyst consensus price target for ROOT is $90.00. WallStSmart rates ROOT as Underperform.
- ROOT PE ratio analysis and historical PE chart
- ROOT PS ratio (Price-to-Sales) history and trend
- ROOT intrinsic value — DCF, Graham Number, EPV models
- ROOT stock price prediction 2025 2026 2027 2028 2029 2030
- ROOT fair value vs current price
- ROOT insider transactions and insider buying
- Is ROOT undervalued or overvalued?
- Root Inc financial analysis — revenue, earnings, cash flow
- ROOT Piotroski F-Score and Altman Z-Score
- ROOT analyst price target and Smart Rating
Root Inc
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ROOT Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Root Inc (ROOT)
ROOT trades 266% above its Graham fair value of $16.05, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Root Inc (ROOT) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales, revenue growth, institutional own.. Concerns around operating margin and eps growth. Mixed signals suggest waiting for clearer direction before acting.
Root Inc (ROOT) Key Strengths (3)
Paying less than $1 for every $1 of annual revenue
Strong revenue growth at 21.50% annually
69.83% held by institutions, strong professional interest
Supporting Valuation Data
Root Inc (ROOT) Areas to Watch (6)
Earnings declining -76.40%, profits shrinking
Near-zero operating margins, business under pressure
Very thin margins, barely profitable
Small-cap company with higher risk but more growth potential
Moderate profitability with room for improvement
Fairly priced relative to book value
Root Inc (ROOT) Detailed Analysis Report
Overall Assessment
This company scores 46/100 in our Smart Analysis, earning a D+ grade. Out of 9 metrics analyzed, 3 register as strengths (avg 8.7/10) while 6 fall into concern territory (avg 3.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales, Revenue Growth, Institutional Own.. Valuation metrics including Price/Sales (0.47) suggest the stock is attractively priced. Growth metrics are encouraging with Revenue Growth at 21.50%.
The Bear Case
The primary concerns are EPS Growth, Operating Margin, Profit Margin. Some valuation metrics including Price/Book (2.50) suggest expensive pricing. Growth concerns include EPS Growth at -76.40%, which may limit upside. Profitability pressure is visible in Return on Equity at 11.30%, Operating Margin at 2.65%, Profit Margin at 2.53%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 11.30% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 21.50% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ROOT Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ROOT's Price-to-Sales ratio of 0.47x trades 35% below its historical average of 0.72x (49th percentile). The current valuation is 84% below its historical high of 3.01x set in Nov 2024, and 1068% above its historical low of 0.04x in Jul 2022. Over the past 12 months, the PS ratio has compressed from ~1.6x as trailing revenue scaled faster than the stock price.
Compare ROOT with Competitors
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Data-driven financial summary for Root Inc (ROOT) · FINANCIAL SERVICES › INSURANCE - PROPERTY & CASUALTY
The Big Picture
Root Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 1.5B with 22% growth year-over-year. Profit margins are strong at 253.0%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 1130.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 253.0% and operating margin of 265.0% demonstrate strong pricing power and operational efficiency.
Earnings fell 76% YoY while revenue grew 22%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Growth sustainability: can Root Inc maintain 22%+ revenue growth, or will competition slow it down?
Volatility is elevated with a beta of 2.90, so expect amplified moves relative to the broader market.
Sector dynamics: monitor INSURANCE - PROPERTY & CASUALTY industry trends, competitive moves, and regulatory changes that could impact Root Inc.
Bottom Line
Root Inc offers an attractive blend of growth (22% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Root Inc(ROOT)
NASDAQ
FINANCIAL SERVICES
INSURANCE - PROPERTY & CASUALT...
USA
Root, Inc. offers insurance products and services in the United States. The company is headquartered in Columbus, Ohio.