Roots Corporation
Roots Corporation Fundamental Analysis
Roots Corporation (RROTF) shows weak financial fundamentals with a PE ratio of 32.57, profit margin of 1.69%, and ROE of 3.17%. The company generates $0.3B in annual revenue with weak year-over-year growth of 0.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RROTF's fundamental strength across five key dimensions:
Efficiency Score
WeakRROTF struggles to generate sufficient returns from assets.
Valuation Score
ModerateRROTF shows balanced valuation metrics.
Growth Score
WeakRROTF faces weak or negative growth trends.
Financial Health Score
ExcellentRROTF maintains a strong and stable balance sheet.
Profitability Score
WeakRROTF struggles to sustain strong margins.
Key Financial Metrics
Is RROTF Expensive or Cheap?
P/E Ratio
RROTF trades at 32.57 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RROTF's PEG of 0.19 indicates potential undervaluation.
Price to Book
The market values Roots Corporation at 0.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.28 times EBITDA. This is generally considered low.
How Well Does RROTF Make Money?
Net Profit Margin
For every $100 in sales, Roots Corporation keeps $1.69 as profit after all expenses.
Operating Margin
Core operations generate 5.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.17 in profit for every $100 of shareholder equity.
ROA
Roots Corporation generates $1.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Roots Corporation produces operating cash flow of $32.25M, showing steady but balanced cash generation.
Free Cash Flow
Roots Corporation produces free cash flow of $25.75M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.66 in free cash annually.
FCF Yield
RROTF converts 16.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How RROTF Stacks Against Its Sector Peers
| Metric | RROTF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.57 | 24.27 | Worse (Expensive) |
| ROE | 3.17% | 1139.00% | Weak |
| Net Margin | 1.69% | 796.00% | Weak |
| Debt/Equity | 0.67 | 0.62 | Neutral |
| Current Ratio | 1.30 | 2.81 | Neutral |
| ROA | 1.47% | -7388.00% (disorted) | Weak |
RROTF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Roots Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-16.59%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
43.58%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-15.50%
Industry Style: Cyclical, Growth, Discretionary
Declining