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 0.46, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.

Root, Inc.'s debt has decreased relative to shareholder equity from 0.64 last year to 0.46 today, signaling strengthened financials

Root, Inc. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

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

Root, Inc.'s profit margin has increased (40.96%) in the last year from 2.63% to 3.70%, signaling increasing performance

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

Root, Inc.'s return on assets of 3.70% is lower than the 5.00% threshold, indicating inefficient asset utilization

Root, Inc.'s return on equity of 14.75%, 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 2.00 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 22.23%, 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 $1.18G to $1.52G, signaling increasing performance

ROIC 3.74% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. 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 3.00 out of 5 years, indicating consistent revenue performance

Root, Inc. had positive ROE in only 2.00 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 6.00%, 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 5.12x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Root, Inc. is overvalued relative to its fair value price of -553.05 based on Earnings Fair Value model

Root, Inc. has a PEG-ratio over 1 which is considered overvalued

Root, Inc. has a price-to-book ratio of 2.20x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Root, Inc. has a price-to-sales ratio of 0.62x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue