Recent News
Feb 26, 2026 — Local coverage reported Root surpassed a $1.5B market threshold and expanded headcount by ~250 employees as the company scales distribution channels. Feb 25, 2026 — Root confirmed participation at the Association of Insurance and Financial Analysts conference in early March, indicating investor outreach and one-on-one engagement plans. Feb 2026 — company communications highlight continued focus on embedded and agency partnerships to expand policy distribution.
Technical Analysis
ADX / DI+ / DI-: ADX at 30.06 indicates a strong directional regime; DI+ shows an increasing trend while DI- shows a peak-and-reversal, together implying renewed bullish directional pressure that supports a short-term rebound despite the longer-term overvaluation.
MACD: MACD sits at -1.92 with the signal at -2.59 and the MACD trend increasing; the MACD currently trades above its signal line, a bullish momentum confirmation that aligns with the headline near-term bounce.
MRO (Momentum/Regression Oscillator): MRO at -24.8 (negative) indicates price sits below model target and therefore carries upside potential; the MRO trend shows increasing strength toward target convergence.
RSI: RSI 39.69 with an increasing trend signals improving momentum from a neutral-to-oversold band, consistent with a bounce but not yet at bullish overbought levels.
Price vs Moving Averages / EMAs: Price closed at $45.58, near the 20-day average ($45.11) but below the 50-day ($51.25) and well below the 200-day ($80.53); the 12-day EMA shows a peak-and-reversal, suggesting short-term exhaustion that tempers the MACD/RSI bullish signals.
Bands, Volatility, Volume: Bollinger bands compress (1x lower ~ $43.33 / upper ~ $46.90) while 42-day beta sits at 1.48 and 52-week beta at 2.26—volatility above the broad market. Recent volume (510k) exceeds the 10-day average (279k), supporting conviction behind recent moves.
Fundamental Analysis
Profitability: EBIT totaled $10,500,000 with an EBIT margin of 2.645%. QoQ the EBIT margin improved by 33.35%, but YoY the margin contracted by 70.71%. The company’s EBIT margin sits well below the industry peer mean (20.964%) and median (16.497%) while remaining above the industry peer low (-17.243%).
Top-Line & Growth: Total revenue reached $397,000,000 with trailing revenue growth of 2.372%. Quarter-over-quarter revenue shows a sharp 85.313% increase, while revenue declined YoY by 65.468%—the QoQ acceleration implies recent distribution or recognition shifts after a weak year-over-year comparison.
Cash Flow & Liquidity: Operating cash flow reached $70,100,000 and free cash flow totaled $65,900,000, yielding a free cash flow yield of 6.087%, above the industry peer mean of 3.487%, supporting near-term flexibility. Cash and short-term investments total $1,056,300,000, providing a sizable liquidity buffer relative to enterprise value ($226,548,741).
Leverage & Capital Efficiency: Debt to assets sits at 11.962%, above the industry peer mean of 5.402%, while asset-to-equity at 5.8899 and asset turnover at 23.938% exceed the industry peer mean asset turnover of 11.081%, indicating capital-intensive balance-sheet structure but relatively efficient revenue generation from assets.
Earnings Momentum & Surprises: Reported EPS equaled $0.31 versus an estimate of -$0.44, an EPS beat of $0.75 and an EPS surprise of +170.46%. Forward EPS stands at $0.95 and forward P/E at 103.62, reflecting elevated forward multiple levels; WMDST classifies the current valuation as over-valued.
Valuation Note: The current valuation as determined by WMDST rates the stock over-valued, a constraint on durable upside despite multiple operational and cash-flow positives documented above.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-25 |
| NEXT REPORT DATE: | 2026-05-27 |
| CASH FLOW | Begin Period Cash Flow | $ 654.4 M |
| Operating Cash Flow | $ 70.1 M | |
| Capital Expenditures | $ -4.20 M | |
| Change In Working Capital | $ 36.4 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 35.5 M | |
| End Period Cash Flow | $ 689.9 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 397.0 M | |
| Forward Revenue | $ 275.9 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 3.1 M | |
| Depreciation and Amortization | $ 3.1 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 391.6 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | $ 10.5 M | |
| Operating Income | — | |
| Interest Income | $ 10.3 M | |
| Interest Expense | $ 5.1 M | |
| Net Interest Income | $ -5.10 M | |
| Income Before Tax | $ 5.4 M | |
| Tax Provision | $ -900.00 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ 5.3 M | |
| Net Income From Continuing Operations | $ 5.3 M | |
| EARNINGS | ||
| EPS Estimate | $ -0.44 | |
| EPS Actual | $ 0.31 | |
| EPS Difference | $ 0.75 | |
| EPS Surprise | 170.455 % | |
| Forward EPS | $ 0.95 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.7 B | |
| Intangible Assets | $ 27.6 M | |
| Net Tangible Assets | $ 256.7 M | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | $ 1.1 B | |
| Cash | $ 669.3 M | |
| Net Receivables | $ 462.6 M | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 76.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | — | |
| Total Debt | $ 200.3 M | |
| Total Liabilities | $ 1.4 B | |
| EQUITY | ||
| Total Equity | $ 284.3 M | |
| Retained Earnings | $ -1.64 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 18.33 | |
| Shares Outstanding | 15.509 M | |
| Revenue Per-Share | $ 25.60 | |
| VALUATION | Market Capitalization | $ 1.1 B |
| Enterprise Value | $ 226.5 M | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 0.571 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 5.89 | |
| Asset To Liability | 1.204 | |
| Debt To Capital | 0.413 | |
| Debt To Assets | 0.12 | |
| Debt To Assets QoQ | -1.967 % | |
| Debt To Assets YoY | -10.585 % | |
| Debt To Assets IPRWA | high: 0.14 ROOT: 0.12 median: 0.056 mean: 0.054 low: 0.005 |
|
| Debt To Equity | 0.705 | |
| Debt To Equity QoQ | -6.835 % | |
| Debt To Equity YoY | -28.279 % | |
| Debt To Equity IPRWA | ROOT: 0.705 high: 0.697 median: 0.227 mean: 0.227 low: 0.012 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.808 | |
| Price To Book QoQ | -28.566 % | |
| Price To Book YoY | -44.115 % | |
| Price To Book IPRWA | high: 4.731 ROOT: 3.808 mean: 2.451 median: 1.861 low: 0.322 |
|
| Price To Earnings (P/E) | 225.166 | |
| Price To Earnings QoQ | -184.159 % | |
| Price To Earnings YoY | 218.463 % | |
| Price To Earnings IPRWA | ROOT: 225.166 high: 103.837 mean: 40.841 median: 40.504 low: 12.348 |
|
| PE/G Ratio | -1.194 | |
| Price To Sales (P/S) | 2.727 | |
| Price To Sales QoQ | -25.139 % | |
| Price To Sales YoY | -35.814 % | |
| Price To Sales IPRWA | high: 19.182 mean: 5.879 median: 5.676 ROOT: 2.727 low: 1.58 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 103.622 | |
| Forward PE/G | -0.55 | |
| Forward P/S | 4.708 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1433.174 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.239 | |
| Asset Turnover Ratio QoQ | -0.308 % | |
| Asset Turnover Ratio YoY | 12.017 % | |
| Asset Turnover Ratio IPRWA | ROOT: 0.239 high: 0.193 mean: 0.111 median: 0.087 low: 0.008 |
|
| Receivables Turnover | 0.829 | |
| Receivables Turnover Ratio QoQ | 4.96 % | |
| Receivables Turnover Ratio YoY | 17.431 % | |
| Receivables Turnover Ratio IPRWA | high: 1.703 ROOT: 0.829 mean: 0.718 median: 0.604 low: 0.073 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 110.029 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 110.029 | |
| Cash Conversion Cycle Days QoQ | -4.726 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 438.402 mean: 120.324 ROOT: 110.029 median: 80.405 low: 33.334 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.011 | |
| CapEx To Depreciation | -1.355 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 484.6 M | |
| Net Invested Capital | $ 484.6 M | |
| Invested Capital | $ 484.6 M | |
| Net Tangible Assets | $ 256.7 M | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 2.011 % | |
| Interest Coverage Ratio | 2.059 | |
| Interest Coverage Ratio QoQ | 3537.491 % | |
| Interest Coverage Ratio YoY | -48.355 % | |
| Interest Coverage Ratio IPRWA | high: 143.716 mean: 38.756 median: 37.5 ROOT: 2.059 low: -0.995 |
|
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.954 % | |
| Revenue Growth | 2.372 % | |
| Revenue Growth QoQ | 85.313 % | |
| Revenue Growth YoY | -65.468 % | |
| Revenue Growth IPRWA | high: 21.706 % mean: 3.728 % median: 2.421 % ROOT: 2.372 % low: -20.344 % |
|
| Earnings Growth | -188.571 % | |
| Earnings Growth QoQ | 47.734 % | |
| Earnings Growth YoY | 4991.01 % | |
| Earnings Growth IPRWA | high: 59.559 % median: 5.18 % mean: 4.841 % low: -43.137 % ROOT: -188.571 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 2.645 % | |
| EBIT Margin QoQ | 3335.065 % | |
| EBIT Margin YoY | -70.709 % | |
| EBIT Margin IPRWA | high: 62.969 % mean: 20.964 % median: 16.497 % ROOT: 2.645 % low: -17.243 % |
|
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 65.9 M | |
| Free Cash Flow Yield | 6.087 % | |
| Free Cash Flow Yield QoQ | 60.1 % | |
| Free Cash Flow Yield YoY | 30.371 % | |
| Free Cash Flow Yield IPRWA | high: 13.218 % ROOT: 6.087 % mean: 3.487 % median: 3.288 % low: -1.478 % |
|
| Free Cash Growth | 22.719 % | |
| Free Cash Growth QoQ | 91.318 % | |
| Free Cash Growth YoY | -40.011 % | |
| Free Cash Growth IPRWA | high: 101.01 % ROOT: 22.719 % mean: -32.073 % median: -36.48 % low: -205.847 % |
|
| Free Cash To Net Income | 12.434 | |
| Cash Flow Margin | 11.738 % | |
| Cash Flow To Earnings | 8.792 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.32 % | |
| Return On Assets QoQ | -195.808 % | |
| Return On Assets YoY | -77.87 % | |
| Return On Assets IPRWA | high: 4.006 % mean: 1.76 % median: 1.737 % ROOT: 0.32 % low: -1.129 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.019 | |
| Return On Equity QoQ | -191.462 % | |
| Return On Equity YoY | -82.819 % | |
| Return On Equity IPRWA | high: 0.134 median: 0.076 mean: 0.069 ROOT: 0.019 low: -0.041 |
|
| DuPont ROE | 1.93 % | |
| Return On Invested Capital (ROIC) | 1.712 % | |
| Return On Invested Capital QoQ | 3256.863 % | |
| Return On Invested Capital YoY | -140.977 % | |
| Return On Invested Capital IPRWA | high: 11.649 % median: 6.141 % mean: 5.991 % ROOT: 1.712 % low: -2.346 % |
|