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Upturn AI Summary - About
Root Inc(ROOT)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for ROOT
10/23/2026: ROOT (1-star) is currently NOT-A-BUY. Pass it for now.
Root Inc is a technology-focused insurer utilizing mobile telematics to provide personalized auto insurance. The company has a notable position in the digital insurance space, driven by its proprietary risk-assessment software and mobile-first platform. Its primary growth story centers on scaling its embedded insurance partnerships to lower customer acquisition costs while maintaining a disciplined focus on improving loss ratios. Investors face risks regarding intense competition from large incumbents, potential regulatory shifts, and the need for sustained profitability. The stock may suit growth-oriented investors interested in fintech disruption, though it requires careful monitoring of quarterly loss trends and operational cash flow.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Root offers potential for tech-driven disruption in insurance, but profitability remains a core challenge. |
| Momentum investor | Strong fit while signal remains positive | The stock can exhibit high price sensitivity to news regarding loss ratios and market trends. |
| Value investor | Weak fit | The company's history of net losses makes it a poor fit for traditional value-based metrics. |
| Dividend investor | Weak fit | Root does not pay a dividend and focuses on capital reinvestment. |
| Low-risk investor | Weak fit | The combination of market competition and financial volatility makes this unsuitable for conservative portfolios. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock is susceptible to rapid price fluctuations based on earnings surprises or macro insurance trends. |
| Valuation risk | Medium / high | The lack of consistent earnings complicates traditional valuation, leading to high potential for re-rating. |
| Competition risk (incumbent dominance) | High | Well-capitalized legacy insurers possess greater scale, data resources, and pricing flexibility. |
| Business quality | Medium | While the tech platform is innovative, the underlying insurance business is inherently cyclical and subject to catastrophic event risks. |
| Dividend income | Low / none | There is no dividend component, making it unattractive for income-focused investors. |
| Execution risk | Medium / high | Success depends on the company's ability to maintain favorable loss ratios while scaling its embedded partnerships. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Choppy
The stock has experienced frequent reversals and pronounced short-term price swings.
Analysis of Past Performance
Type Stock | Historic Profit 14.74% | Avg. Invested days 22 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 10/23/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 819.28M USD | Price to earnings Ratio 14.94 | 1Y Target Price 57 |
Price to earnings Ratio 14.94 | 1Y Target Price 57 | ||
Volume (30-day avg) 195.4K shares | Beta 2.91 | 52 Weeks Range 40.91 - 91.00 | Updated Date 10/24/2026 |
52 Weeks Range 40.91 - 91.00 | Updated Date 10/24/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.54 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Direct-to-Consumer Auto Insurance | Premiums collected from policyholders who purchase insurance directly via the Root app. | This is the primary revenue engine, but it requires careful management of claims costs to remain profitable. |
| Embedded Insurance Products | Commission-based or integration fees from partners where insurance is sold at the point of sale. | This segment is a lower-acquisition-cost growth avenue designed to broaden reach without high marketing spend. |
Valuation
Trailing PE 14.94 | Forward PE 3.44 | Enterprise Value 529.95M | Price to Sales(TTM) 0.52 |
Enterprise Value 529.95M | Price to Sales(TTM) 0.52 | ||
Enterprise Value to Revenue 0.34 | Enterprise Value to EBITDA - | Shares Outstanding 13.69M | Shares Floating 12.30M |
Shares Outstanding 13.69M | Shares Floating 12.30M | ||
Percent Insiders 5.9 | Percent Institutions 64.7 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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