* Note: Prices are in Million (M) USD.
Description:
Root, Inc. offers insurance products and services in the United States. The company is headquartered in Columbus, Ohio.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $599 M
Debt : $200 M
EBITDA : $102 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Financials
Industry: Insurance - Property & Casualty
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 7.71
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $-138 M
Average Revenue: $424 M
Revenue Converted To Free Cash Flow (%): -33%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 100.11%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,177 M
Revenue 4 Years Ago (2020-12-31): $347 M
Last 5 Years Average Revenue Growth: 48%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $17 M
Share Count 5 Years Ago (2020-12-31): $4 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $20.19
Trailing 12-Month Earnings Per Share (EPS): $2.66
Average Earnings Per Share (EPS): $11.42
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -34%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $88
52-Week Low: $34
Threshold Price (15% Above 52-Week Low): $39
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,737 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 19 points to above Root Inc (ROOT) stock.
Last 1 Years Avg PE (Limited to last 1 years of EPS data) 44.12, Fair Value PE 12, Industry Based PE is 15 and Growth based PE is 23. Based on these all values average assigned is 23.53.
Value-Trades has assined P/E value 23.53. Since an average (Current Year EPS + Next Year EPS) earning per share is $11.42.
The fair value of Root Inc (ROOT) stock should be (23.53 x $11.42) = $268.71
