Root Inc (ROOT) Stock Analysis
Verdict: HOLD
Profitability pivot validated by four massive EPS beats, yet extreme volatility and low liquidity ratios necessitate a cautious stance.
Investment score: 64/100
Analysis as of
Is Root Inc stock worth reviewing? The TradeMates thesis
Root has successfully pivoted to profitability, but its high beta and insider selling warrant patience for a better entry point.
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 60/100 (weight 15%)
- Technical Momentum: 65/100 (weight 15%)
- Earnings Quality: 90/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Root Inc opportunities and risks
What speaks for ROOT
- Sustained Earnings Surprises
What speaks against ROOT
- Severe Liquidity Constraint Risk
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ROOT | 15.8x | 0.5x | 4.5x | 28.6% | 3.7% | 22.1% |
| UFCS | 9.6x | 0.9x | 6.7x | 34.2% | 9.2% | 22.8% |
| UVE | 5.5x | 0.7x | 2.2x | 31.9% | 12.2% | 31.7% |
| SAFT | 16.0x | 0.8x | 11.1x | 32.7% | 5.0% | 16.7% |
| TRUP | 38.6x | 0.7x | 16.6x | 22.4% | 1.7% | 7.5% |
| ASIC | 10.2x | 2.0x | 7.3x | 54.8% | 19.4% | 5.3% |
| Peer median | 10.2x | 0.8x | 7.3x | 32.7% | 9.2% | 16.7% |
Frequently asked questions about Root Inc (ROOT)
Is ROOT stock a good investment?
The TradeMates model rates Root Inc as HOLD with an investment score of 64/100. Root has successfully pivoted to profitability, but its high beta and insider selling warrant patience for a better entry point. This is algorithmic model output, not personal investment advice.
Is ROOT stock a buy?
The TradeMates model verdict for ROOT is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.