ROOT

Company Overview — What Does Root, Inc. Do?

Root, Inc. provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. The company operates a direct-to-consumer model and serves customers primarily through mobile applications, as well as through its website. Its direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies. The company was incorporated in 2015 and is headquartered in Columbus, Ohio. Root, Inc. (ROOT) is classified as a small-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO Alexander E. Timm and employs approximately 760 people. With a market capitalization of $673M, ROOT is one of the notable companies in the Financials sector.

Root, Inc. (ROOT) Stock Rating — Reduce (April 2026)

As of April 2026, Root, Inc. receives a Reduce rating with a composite score of 41.2/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.ROOT ranks #3,401 out of 4,446 stocks in our coverage universe. Within the Financials sector, Root, Inc. ranks #776 of 891 stocks, placing it in the lower half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

ROOT Stock Price and 52-Week Range

Root, Inc. (ROOT) currently trades at $44.00. The stock lost $2.62 (5.6%) in the most recent trading session. The 52-week high for ROOT is $181.14, which means the stock is currently trading -75.7% from its annual peak. The 52-week low is $42.65, putting the stock 3.2% above its annual trough. Recent trading volume was 373K shares, suggesting relatively thin trading activity.

Is ROOT Overvalued or Undervalued? — Valuation Analysis

Root, Inc. (ROOT) carries a value factor score of 66/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 11.99x, compared to the Financials sector average of 14.88x — a discount of 19%. The price-to-book ratio stands at 2.44x, versus the sector average of 1.22x. The price-to-sales ratio is 0.49x, compared to 0.90x for the average Financials stock. On an enterprise value basis, ROOT trades at 10.42x EV/EBITDA, versus 3.26x for the sector.

Overall, ROOT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

Root, Inc. Profitability — ROE, Margins, and Quality Score

Root, Inc. (ROOT) earns a quality factor score of 65/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 20.3%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 3.5% versus the sector average of 1.2%.

On a margin basis, Root, Inc. reports gross margins of 38.0%. The operating margin is 6.3% (sector: 21.8%). Net profit margin stands at 4.3%, versus 17.7% for the average Financials stock. Revenue growth is running at 34.1% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

ROOT Debt, Balance Sheet, and Financial Health

Root, Inc. has a debt-to-equity ratio of 70.0%, compared to the Financials sector average of 121.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.31x, suggesting adequate working capital coverage. Total debt on the balance sheet is $200M. Cash and equivalents stand at $653M.

ROOT has a beta of 1.98, meaning it is more volatile than the broader market — a $10,000 investment in ROOT would be expected to move 97.8% more than the S&P 500 on any given day. The stability factor score for Root, Inc. is 26/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

Root, Inc. Revenue and Earnings History — Quarterly Trend

In TTM 2026, Root, Inc. reported revenue of $1.43B and earnings per share (EPS) of $2.49. Net income for the quarter was $58M. Gross margin was 38.0%. Operating income came in at $86M.

In FY 2025, Root, Inc. reported revenue of $1.52B and earnings per share (EPS) of $2.49. Net income for the quarter was $40M. Revenue grew 29.0% year-over-year compared to FY 2024. Operating income came in at $62M.

In Q3 2025, Root, Inc. reported revenue of $388M and earnings per share (EPS) of $-0.35. Net income for the quarter was $-5M. Revenue grew 26.9% year-over-year compared to Q3 2024. Operating income came in at $300,000.

In Q2 2025, Root, Inc. reported revenue of $383M and earnings per share (EPS) of $1.36. Net income for the quarter was $22M. Revenue grew 32.4% year-over-year compared to Q2 2024. Operating income came in at $27M.

Over the past 8 quarters, Root, Inc. has demonstrated a growth trajectory, with revenue expanding from $289M to $1.43B. Investors analyzing ROOT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

ROOT Dividend Yield and Income Analysis

Root, Inc. (ROOT) does not currently pay a dividend. This is common among smaller companies in the Insurance industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.

ROOT Momentum and Technical Analysis Profile

Root, Inc. (ROOT) has a momentum factor score of 12/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 41/100 reflects moderate short selling activity.

ROOT vs Competitors — Financials Sector Ranking and Peer Comparison

Within the Financials sector, Root, Inc. (ROOT) ranks #776 out of 891 stocks based on the Blank Capital composite score. This places ROOT in the lower half of all Financials stocks in our coverage universe. Key competitors and sector peers include WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) with a score of 62.9/100, OPPENHEIMER HOLDINGS INC (OPY) with a score of 62.6/100, Enact Holdings, Inc. (ACT) with a score of 61.6/100, International General Insurance Holdings Ltd. (IGIC) with a score of 61.3/100, and PARKE BANCORP, INC. (PKBK) with a score of 60.4/100.

Comparing ROOT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ROOT vs S&P 500 (SPY) comparison to assess how Root, Inc. stacks up against the broader market across all factor dimensions.

ROOT Next Earnings Date

No upcoming earnings date has been announced for Root, Inc. (ROOT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy ROOT? — Investment Thesis Summary

The quantitative profile for Root, Inc. suggests caution. The quality score of 65/100 indicates above-average profitability and business fundamentals. The value score of 66/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 12/100, a headwind for near-term performance. High volatility (stability score 26/100) increases portfolio risk.

In summary, Root, Inc. (ROOT) earns a Reduce rating with a composite score of 41.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ROOT stock.

Related Resources for ROOT Investors

Explore more research and tools: ROOT vs S&P 500 comparison, top Financials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare ROOT head-to-head with peers: ROOT vs WTM, ROOT vs OPY, ROOT vs ACT.