Root, Inc. · Property and casualty insurance

ROOT

Moderate riskNext report: Around Nov 4 (est.)

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The short version

A profitable company with steady sales.

Going well

Profitable
Sales up 29% last year
Brings in more cash than it spends

Watch out for

Share count growing 6.6% a year

Money moves

No insider buying or selling in the last 30 days
Institutions cut 2.8% from their holdings in the quarter ending June 2026 (95 bought, 60 sold)

Facts from SEC filings, not a recommendation.

What the price means

Price as of Oct 26

$51.78-1.9% that day

Company value: $880M; Share price times all shares
Price vs profit (P/E): 14.6x; You pay about $15 for each $1 of yearly profit
Price vs sales: 0.56x; Company value is 0.56 times a year of sales
Cash vs value: 58%; A big cushion: cash is a large part of what the company is worth
Debt vs value: 23%; Debt as a share of company value

From ROOT's last IEX trade and its SEC filings (profits and sales over the last four quarters). A starting point for research, not a verdict.

The business over time

Last 12 quarters, from SEC filings

Sales, Jun '26

$389.2M+1.6% vs a year earlier

Sep '23Tap a barJun '26

Last 12 months: $1.6B, up 15% from the 12 months before. Over 5 years, sales grew about 34% a year.

What the price assumes

Your guesses, our math

Move the sliders to your own view of ROOT. Starting points are the company's recent numbers.

Sales growth+15% a yearRecently: +15% a yearProfit margin4%Last 12 months: 3.9%P/E at the end15xToday: 14.6x. Many steady companies trade at 12x to 25xShare count change+7% a yearBelow zero means buybacks; above zero means new shares (dilution)

Sales in 5 years$3.2B

Profit in 5 years$126M

Price these guesses point to$79.34+53% vs $51.78 todayAbout +8.9% a year, before dividends

What today's price needs: with a 4% margin and a 15x P/E, sales would have to grow about 5.6% a year for 5 years just to match today's price.

Simple math on your guesses, not a forecast or a price target. Real results depend on many things these sliders leave out.

Price

Price chart by TradingView.

Business quality

The checklist Warren Buffett-style investors use. Annual numbers for 2025.

2/6Weak

PassReturn on equity 15%+Earns a lot on the money owners have in the business.16.4%
MissDebt under half of equityNot relying on borrowed money.0.70x equity
MissNet margin 10%+Keeps at least 10 cents of profit from each dollar of sales.2.6%
MissProfitable every yearSteady profits, not one good year.2 of 8 years
PassFree cash flow positiveBrings in more cash than it spends to run and grow.$206.5M
MissShare count not growingNot diluting owners. Falling means buybacks.+21.3% in 3 years

Revenue: $1.5B; +29.0% vs prior year
5-year growth: +34.3%/yr; revenue, per year
Total debt: $200.3M; 0.70x equity
Free cash flow: $206.5M; 13.6% of revenue

From annual reports filed with the SEC. Gross margin doesn't apply to banks and insurers, so it isn't scored. A checklist is a starting point for research, not a verdict.