Root, Inc. (ROOT) is a publicly traded company in the Financial Services — Insurance - Property & Casualty industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Root, Inc. operates within the United States, concentrating on delivering a range of insurance solutions, including policies for automobiles, residential properties, and rental occupancy. The company employs a direct-to-consumer business model, primarily connecting with its customers via user-friendly mobile applications and its official website.
Analysis Summary
Root, Inc. reported revenue of $1.52B in the most recent fiscal year, growing at a 5-year CAGR of 34.3%.
Trailing-twelve-month margins: gross margin 31.5%, operating margin 4.0%, net margin 3.9%.
At the current price of $52.44, ROOT trades at a P/E of 13.83 and an ROE of 15.91%. Market capitalisation stands at $735M.
Balance sheet quality for ROOT: current ratio of 2.6, net cash position of $488.6M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $192.4M represents 477% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Price
| Price | $52.44 |
| Market Cap | $735M |
| Exchange | NASDAQ |
| Country | US |
Valuation Ratios
| P/E Ratio | 13.83 |
| Price / Book | 2.46 |
| EV / EBITDA | 5.80 |
| Dividend Yield | 0.00% |
Profitability
| Return on Equity | 15.91% |
| Return on Invested Capital | 9.41% |
| Return on Assets | 3.67% |
| Gross Margin | 31.54% |
| Operating Margin | 3.96% |
| Net Margin | 3.90% |
Financial Health
| Debt / Equity | 0.95 |
| Current Ratio | 1.52 |
What to look at in Insurance
Insurers earn in 2 ways: underwriting well (combined ratio) and investing the float. Buffett built Berkshire that way.
- Op Margin 5y (Combined Ratio proxy) — Combined ratio proxy when FMP does not expose it. ≥10% 5y average = underwriting discipline (CR <100%)
- Book Value / Share growth — How Buffett measures Berkshire. The real value shareholders accumulate
- Debt / Equity — Leveraged insurers fail fast under catastrophes
- P/B (Price / Book) — Insurers are valued by book multiple. Here it is crossed with ROE (quality × valuation)
- Dividend growth streak — Consecutive years raising dividend per share — solid insurers stack decades
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| ROOT | Root, Inc. | $735M | 13.83 | 2.46 | 15.9% |
| 0VQD.L | Chubb Limited | $134.6B | 12.41 | 1.74 | 14.0% |
| CB | Chubb Limited | $131.8B | 12.13 | 1.80 | 15.2% |
| 0KOC.L | The Progressive Corporation | $128.0B | 10.97 | 3.72 | 35.4% |
| PGR | The Progressive Corporation | $126.2B | 11.03 | 3.74 | 35.4% |
| 0R03.L | The Travelers Companies, Inc. | $82.7B | 10.61 | 2.01 | 19.1% |
| TRV | The Travelers Companies, Inc. | $79.0B | 10.28 | 2.48 | 25.6% |
| 0HCZ.L | The Allstate Corporation | $67.3B | 5.09 | 1.96 | 43.1% |
Price Performance
| 1 month | +0.29% |
| 3 months | +0.87% |
| Year-to-date | -27.40% |
| 1 year | -44.97% |
| 3 years | +395.65% |
| 5 years | -52.24% |
52-Week Range
| 52-week High | $104.47 |
| 52-week Low | $40.91 |
| Avg Volume (90d) | 255K |
Related companies: ASIC · BOW · CSWC · HRZN · MFIC · OBK · PRA
Explore sector: Financial Services · Insurance - Property & Casualty
More sections of ROOT: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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