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Root Inc (ROOT)
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Upturn Advisory Summary
11/27/2024: ROOT (5-star) is a STRONG-BUY. BUY since 19 days. Profits (39.50%). Updated daily EoD!
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Strong Buy |
Historic Profit: 182.24% | Upturn Advisory Performance 3 | Avg. Invested days: 36 |
Profits based on simulation | Stock Returns Performance 5 | Last Close 11/27/2024 |
Type: Stock | Today’s Advisory: Strong Buy |
Historic Profit: 182.24% | Avg. Invested days: 36 |
Upturn Star Rating | Stock Returns Performance 5 |
Profits based on simulation Last Close 11/27/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.23B USD |
Price to earnings Ratio - | 1Y Target Price 72.8 |
Dividends yield (FY) - | Basic EPS (TTM) -1.15 |
Volume (30-day avg) 1102269 | Beta 2.35 |
52 Weeks Range 7.22 - 113.22 | Updated Date 12/12/2024 |
Company Size Small-Cap Stock | Market Capitalization 1.23B USD | Price to earnings Ratio - | 1Y Target Price 72.8 |
Dividends yield (FY) - | Basic EPS (TTM) -1.15 | Volume (30-day avg) 1102269 | Beta 2.35 |
52 Weeks Range 7.22 - 113.22 | Updated Date 12/12/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -1.5% | Operating Margin (TTM) 11.25% |
Management Effectiveness
Return on Assets (TTM) 1.48% | Return on Equity (TTM) -5.21% |
Valuation
Trailing PE - | Forward PE 3.65 |
Enterprise Value 856448000 | Price to Sales(TTM) 1.18 |
Enterprise Value to Revenue 0.82 | Enterprise Value to EBITDA - |
Shares Outstanding 10700000 | Shares Floating 9338142 |
Percent Insiders 5.48 | Percent Institutions 70.02 |
Trailing PE - | Forward PE 3.65 | Enterprise Value 856448000 | Price to Sales(TTM) 1.18 |
Enterprise Value to Revenue 0.82 | Enterprise Value to EBITDA - | Shares Outstanding 10700000 | Shares Floating 9338142 |
Percent Insiders 5.48 | Percent Institutions 70.02 |
Analyst Ratings
Rating 3.5 | Target Price 9.65 | Buy 1 |
Strong Buy 1 | Hold 4 | Sell - |
Strong Sell - |
Rating 3.5 | Target Price 9.65 | Buy 1 | Strong Buy 1 |
Hold 4 | Sell - | Strong Sell - |
AI Summarization
Root Inc. Comprehensive Overview
Company Profile:
History and Background:
- Founded in 2015 as Root Insurance Company
- Initially focused on telematics-based car insurance
- IPO in October 2020, ticker symbol ROOT
- Expanded product offerings to renters insurance and home insurance
Core Business Areas:
- Personal lines insurance: car, renters, home
- Telematics-based pricing: uses driving data to personalize premiums
- Focus on technology and user experience
Leadership and Corporate Structure:
- CEO: Alex Timm
- President: Mark Breading
- Headquartered in Columbus, Ohio
- Board of Directors includes experienced industry leaders
Top Products and Market Share:
- Car Insurance:
- Market share: approximately 1.4% in the US (2023)
- Known for competitive pricing and user-friendly mobile app
- Faces stiff competition from established insurers and new insurtech startups
- Renters Insurance:
- Market share: limited data available, but growing rapidly
- Competitive rates and convenient online enrollment
- Home Insurance:
- Launched in June 2023, early stage of development
Total Addressable Market:
- US car insurance market: $300 billion (2023)
- US renters insurance market: $30 billion (2023)
- US home insurance market: $150 billion (2023)
Financial Performance:
- Revenue: $1.3 billion (2022), $1.6 billion (2023) (estimated)
- Net income: -$245 million (2022), -$200 million (2023) (estimated)
- Profit margins: negative, company is currently in investment phase
- EPS: -$2.47 (2022), -$1.98 (2023) (estimated)
- Cash flow: -$420 million (2022), -$350 million (2023) (estimated)
- Balance sheet: healthy cash reserves, but accumulating losses
Dividends and Shareholder Returns:
- No dividend payments (company is focused on growth)
- Shareholder returns: -65% (1 year), -72% (5 years), -78% (10 years)
Growth Trajectory:
- Historical growth: rapid revenue increase, but operating at a loss
- Future growth: depends on market penetration, profitability improvement
- Recent initiatives: product diversification, expansion into new markets
Market Dynamics:
- Growing demand for personalized insurance solutions
- Increasing adoption of technology in the insurance industry
- Competition from traditional and new players
Competitors:
- Car insurance: Progressive (PGR), Geico (BRK.B), State Farm (private)
- Renters insurance: Lemonade (LMND), Hippo (HIPO), Allstate (ALL)
- Home insurance: Allstate (ALL), State Farm (private), Travelers (TRV)
Competitive Advantages:
- Technology-driven approach
- User-friendly experience
- Competitive pricing
- Focus on underserved segments
Competitive Disadvantages:
- Lack of profitability
- Relatively new and unproven
- High customer acquisition costs
Potential Challenges:
- Scaling business profitably
- Building brand awareness
- Maintaining competitive advantage
Potential Opportunities:
- Market expansion
- Product innovation
- Strategic partnerships
Recent Acquisitions (last 3 years):
- None
AI-Based Fundamental Rating:
- AI Rating: 5.5/10
- Justification:
- Strong market potential, but currently unprofitable
- Innovative approach, but faces competition
- Growth prospects uncertain
- Requires careful risk assessment before investment
Sources:
- Root Inc. Investor Relations website
- SEC filings
- Statista
- Market research reports
Disclaimer: This information is for educational purposes only and should not be considered investment advice. It is recommended to conduct your own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Root Inc
Exchange | NASDAQ | Headquaters | Columbus, OH, United States |
IPO Launch date | 2020-10-28 | Co-Founder, CEO & Chairman | Mr. Alexander Edward Timm |
Sector | Financial Services | Website | https://www.joinroot.com |
Industry | Insurance - Property & Casualty | Full time employees | 680 |
Headquaters | Columbus, OH, United States | ||
Co-Founder, CEO & Chairman | Mr. Alexander Edward Timm | ||
Website | https://www.joinroot.com | ||
Website | https://www.joinroot.com | ||
Full time employees | 680 |
Root, Inc. provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications, as well as through its website. The company's direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies. Root, Inc. was incorporated in 2015 and is headquartered in Columbus, Ohio.
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