Root, Inc. (ROOT) 10-Year Financial Performance & Capital Metrics

ROOT • • Insurance & Managed Care

Financial ServicesProperty & Casualty InsuranceDigital/Insurtech InsuranceDigital Direct Insurers

AboutRoot, 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.Show more

Revenue $1.18B +158.6%
Combined Ratio 97.37% -26.5%
Net Income $31M +121.0%
Return on Equity 16.73% +125.1%
Medical Cost Ratio 71.35% -14.3%
Operating Margin 2.63% +108.1%
Net Margin 2.63% +108.1%
ROA 2.17% +119.6%
Equity / Assets 13.62% +10.8%
Book Value per Share 12.05 +4.7%
Tangible BV/Share 10.75 +5.7%
Debt/Equity 0.98 -45.6%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9

✗Weaknesses

✗Weak momentum: RS Rating 14 (bottom 14%)
✗Shares diluted 17.4% in last year
✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-

5Y32.31%

3Y50.46%

TTM38.5%

Profit (Net Income) CAGR

10Y-

5Y-

3Y-

TTM475.66%

EPS CAGR

10Y-

5Y-

3Y-

TTM369.11%

ROCE

10Y Avg-27.65%

5Y Avg-18.9%

3Y Avg-10.51%

Latest2.17%

Peer Comparison

Digital Direct Insurers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ROOTRoot, Inc.	988.1M	72.11	39.40	158.57%	3.95%	21.55%	18.61%	0.98
LMNDLemonade, Inc.	5.99B	80.19	-28.14	22.5%	-26.39%	-33.67%		0.18

Profit & Loss

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	43.3M	290.2M	346.8M	345.4M	310.8M	455M	1.18B
Revenue Growth %	-	5.7%	0.2%	-0%	-0.1%	0.46%	1.59%
Medical Costs & Claims+	53.7M	373.7M	361M	397.3M	343M	378.9M	839.4M
Medical Cost Ratio %	-	-	-	-	-	-	-
Gross Profit+	-10.4M	-83.5M	-14.2M	-51.9M	-32.2M	76.1M	337.1M
Gross Margin %	-	-	-	-	-	-	-
Gross Profit Growth %	-	-7.03%	0.83%	-2.65%	0.38%	3.36%	3.43%
Operating Expenses+	58.7M	198.9M	348.8M	469.2M	265.5M	223.5M	306.2M
OpEx / Revenue %	-	-	-	-	-	-	-
Depreciation & Amortization	600K	4.9M	15.6M	16.6M	13.8M	12.6M	14.9M
Combined Ratio %	-	-	-	-	-	-	-
Operating Income+	-69.1M	-282.4M	-363M	-521.1M	-297.7M	-147.4M	30.9M
Operating Margin %	-	-	-	-	-	-	-
Operating Income Growth %	-	-3.09%	-0.29%	-0.44%	0.43%	0.5%	1.21%
EBITDA+	-68.5M	-277.5M	-347.4M	-504.5M	-283.9M	-134.8M	45.8M
EBITDA Margin %	-	-	-	-	-	-	-
Interest Expense	900K	22.3M	77.7M	20M	34.6M	46.1M	42.2M
Non-Operating Income	-900K	-22.3M	-77.7M	-20M	-34.6M	-46.1M	-42.2M
Pretax Income+	-69.1M	-282.4M	-363M	-521.1M	-297.7M	-147.4M	30.9M
Pretax Margin %	-	-	-	-	-	-	-
Income Tax+	0	0	0	0	0	0	0
Effective Tax Rate %	-	-	-	-	-	-	-
Net Income+	-69.1M	-282.4M	-363M	-521.1M	-297.7M	-147.4M	30.9M
Net Margin %	-	-	-	-	-	-	-
Net Income Growth %	-	-3.09%	-0.29%	-0.44%	0.43%	0.5%	1.21%
EPS (Diluted)+	-6.08	-24.83	-86.43	-37.62	-21.11	-10.24	1.83
EPS Growth %	-	-3.08%	-2.48%	0.56%	0.44%	0.51%	1.18%
EPS (Basic)	-6.08	-24.83	-86.43	-37.62	-21.11	-10.24	1.96
Diluted Shares Outstanding	1.77M	14.08M	13.88M	13.84M	14.1M	14.4M	16.9M

Balance Sheet

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	216M	728.6M	1.76B	1.32B	1.31B	1.35B	1.5B
Asset Growth %	-	2.37%	1.42%	-0.25%	-0%	0.03%	0.11%
Total Investment Assets+	20.2M	122.8M	224.5M	134.6M	133.2M	171.2M	311.2M
Long-Term Investments	20.2M	122.8M	224M	129.9M	128.8M	166.8M	306.8M
Short-Term Investments	20.2M	122.8M	224M	129.9M	128.8M	166.8M	306.8M
Total Current Assets+	193.6M	0	0	0	0	0	0
Cash & Equivalents	122.3M	391.7M	1.11B	706M	762.1M	678.7M	599.3M
Receivables	0	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Assets	0	-679.9M	-1.7B	-1.24B	-1.23B	-1.27B	-1.39B
Goodwill & Intangibles+	1.5M	6.6M	9.6M	12.5M	16.3M	19.2M	22M
Goodwill	0	0	0	0	0	0	0
Intangible Assets	1.5M	6.6M	9.6M	12.5M	16.3M	19.2M	22M
PP&E (Net)	3.8M	10.2M	8.9M	10.3M	5.5M	2.8M	1.8M
Other Assets	-24M	-139.6M	-242.5M	-152.7M	-150.6M	-188.8M	-330.6M
Total Liabilities	318.7M	1.1B	729.9M	782.9M	1.04B	1.18B	1.29B
Total Debt+	14.9M	171.9M	188.2M	0	295.4M	299M	200.1M
Net Debt	-107.4M	-219.8M	-924.6M	-706M	-466.7M	-379.7M	-399.2M
Long-Term Debt	4.9M	171.9M	188.2M	0	295.4M	299M	200.1M
Short-Term Debt	10M	0	0	0	0	0	0
Total Current Liabilities+	40.1M	0	0	0	0	0	0
Accounts Payable	30.1M	55.5M	137.1M	130.7M	159.5M	120M	103.9M
Deferred Revenue	-6.9M	0	0	0	0	0	0
Other Current Liabilities	-40.1M	-56.4M	-147.3M	-130.7M	-166.8M	-127.9M	-103.9M
Deferred Taxes	0	0	0	0	0	0	0
Other Liabilities	-4.9M	-171.9M	-188.2M	0	-295.4M	-299M	-200.1M
Total Equity+	-102.7M	-374M	1.03B	536.4M	277.1M	165.7M	203.7M
Equity Growth %	-	-2.64%	3.76%	-0.48%	-0.48%	-0.4%	0.23%
Shareholders Equity	-102.7M	-374M	1.03B	536.4M	277.1M	165.7M	203.7M
Minority Interest	0	0	0	0	0	0	0
Retained Earnings	-102.6M	-385M	-748M	-1.27B	-1.57B	-1.72B	-1.68B
Common Stock	0	0	0	0	0	0	0
Accumulated OCI	0	600K	5.6M	400K	-5.8M	-2.5M	-2.3M
Return on Equity (ROE)	-	-	-1.1%	-0.66%	-0.73%	-0.67%	0.17%
Return on Assets (ROA)	-0.32%	-0.6%	-0.29%	-0.34%	-0.23%	-0.11%	0.02%
Equity / Assets	-	-	-	-	-	-	-
Debt / Equity	-	-	0.18x	-	1.07x	1.80x	0.98x
Book Value per Share	-57.95	-26.56	74.38	38.74	19.65	11.51	12.05
Tangible BV per Share	-	-	-	-	-	-	-

Cash Flow

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	-26.1M	-127.2M	-287.2M	-403.4M	-210.6M	-33.6M	195.7M
Operating CF Growth %	-	-3.87%	-1.26%	-0.4%	0.48%	0.84%	6.82%
Operating CF / Revenue %	-	-	-	-	-	-	-
Net Income	-69.1M	-282.4M	-363M	-521.1M	-297.7M	-147.4M	30.9M
Depreciation & Amortization	600K	4.9M	15.6M	16.6M	13.8M	12.6M	14.9M
Stock-Based Compensation	100K	1.4M	3.7M	28.1M	45M	34.7M	22.3M
Deferred Taxes	0	0	0	0	0	0	0
Other Non-Cash Items	300K	29.6M	112.2M	20.7M	16M	13.8M	39M
Working Capital Changes	42M	119.3M	-55.7M	52.3M	12.3M	52.7M	88.6M
Cash from Investing+	-20.6M	-114M	-114.1M	76.9M	-16.6M	-45.7M	-154.4M
Capital Expenditures	-1.2M	-6.6M	-1.8M	-4.6M	-10.1M	-200K	-400K
Acquisitions	0	0	0	0	0	0	0
Purchase of Investments	-40.3M	-138.1M	-158.4M	-17M	-47.7M	-76M	-197.8M
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Investing	-2.3M	-5.5M	-14.3M	-6.6M	0	-9.2M	-11.4M
Cash from Financing+	150.9M	535.5M	1.1B	-80.3M	283.3M	-4.1M	-120.7M
Dividends Paid	0	0	0	0	0	0	0
Share Repurchases	0	0	-200K	0	0	0	0
Stock Issued	0	0	1.1B	0	0	0	0
Debt Issuance (Net)	0	1000K	-1000K	-1000K	1000K	0	-1000K
Other Financing	100K	11.9M	2.1M	3.2M	300K	-1.1M	-15M
Net Change in Cash+	104.2M	294.3M	697.2M	-406.8M	56.1M	-83.4M	-79.4M
Exchange Rate Effect	0	0	0	0	0	0	0
Cash at Beginning	18.1M	122.3M	416.6M	1.11B	707M	763.1M	679.7M
Cash at End	122.3M	416.6M	1.11B	707M	763.1M	679.7M	600.3M
Free Cash Flow+	-29.6M	-139.3M	-303.3M	-414.6M	-220.7M	-43M	183.9M
FCF Growth %	-	-3.71%	-1.18%	-0.37%	0.47%	0.81%	5.28%
FCF Margin %	-	-	-	-	-	-	-
FCF per Share	-16.7	-9.89	-21.85	-29.95	-15.65	-2.99	10.88

Key Ratios

Metric	2018	2019	2020	2021	2022	2023	2024
Combined Ratio	259.58%	197.31%	204.67%	250.87%	195.79%	132.4%	97.37%
Medical Cost Ratio	124.02%	128.77%	104.09%	115.03%	110.36%	83.27%	71.35%
Return on Equity (ROE)	-	-	-110.27%	-66.43%	-73.19%	-66.58%	16.73%
Return on Assets (ROA)	-31.99%	-59.79%	-29.15%	-33.82%	-22.62%	-11.08%	2.17%
Equity / Assets	-47.55%	-51.33%	58.58%	40.66%	21.11%	12.3%	13.62%
Book Value / Share	-57.95	-26.56	74.38	38.74	19.65	11.51	12.05
Debt / Equity	-	-	0.18x	-	1.07x	1.80x	0.98x
Revenue Growth	-	570.21%	19.5%	-0.4%	-10.02%	46.4%	158.57%

Frequently Asked Questions

Valuation & Price

Root, Inc. (ROOT) has a price-to-earnings (P/E) ratio of 39.4x. This suggests investors expect higher future growth.

Growth & Financials

Root, Inc. (ROOT) grew revenue by 158.6% over the past year. This is strong growth.

Yes, Root, Inc. (ROOT) is profitable, generating $57.1M in net income for fiscal year 2024 (2.6% net margin).

Dividend & Returns

Root, Inc. (ROOT) has a return on equity (ROE) of 16.7%. This is reasonable for most industries.

Industry Metrics

Root, Inc. (ROOT) has a combined ratio of 97.4%. A ratio below 100% indicates underwriting profitability.

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