Root, Inc. cash flow to debt ratio of 102.58% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Root, Inc.'s free cash flow has increased 4.62% from $183.90M last year to $192.40M, signaling increasing performance

Root, Inc.'s debt to equity ratio is 0.45, which means that the company's assets are healthy financed, signaling financial stability.

Root, Inc.'s debt has decreased relative to shareholder equity from 0.64 last year to 0.45 today, signaling strengthened financials

Root, Inc. has a net cash position, so leverage is healthy.

Root, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Root, Inc.'s profit margin has increased (48.65%) in the last year from 2.63% to 3.90%, signaling increasing performance

Root, Inc.'s short-term assets of $1.02B exceed its short-term liabilities of $389.70M

Root, Inc.'s return on assets of 3.93% is lower than the 5.00% threshold, indicating inefficient asset utilization

Root, Inc.'s return on equity of 14.83%, is lower than 15.00%, indicating bad performance

Root, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Root, Inc. had positive net income in only 2 out of 5 years, indicating unstable earnings

Root, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Root, Inc. has a free cash flow yield of 25.68%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Root, Inc.'s yearly earnings has increased 30.42% since last year from $30.90M to $40.30M, signaling increasing performance

Root, Inc.'s yearly revenue has increased 28.95% since last year from $1.18B to $1.52B, signaling increasing performance

ROIC 9.55% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Root, Inc.'s 3-year revenue CAGR of 69.63% is positive, indicating growing revenue over the past 3 years

Root, Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Root, Inc. had positive ROE in only 2 out of 5 years, indicating inconsistent returns on equity

Root, Inc. has insufficient data to evaluate this check.

Root, Inc. has an earnings yield of 7.29%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Root, Inc. is undervalued relative to its fair value price of 73.02 based on EBITDA multiple model

Root, Inc. has an EV/EBITDA ratio of 3.54x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Root, Inc. has insufficient data to evaluate this check.

Root, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Root, Inc. has a price-to-book ratio of 1.91x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Root, Inc. has a price-to-sales ratio of 0.54x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue