Root, Inc. (ROOT) AI Stock Analysis

Established in 2015 and based in Columbus, Ohio, Root, Inc. operates in the property and casualty insurance sector across the United States. The company focuses on automobile, homeowners, and renters insurance products. Root utilizes a direct-to-consumer model, leveraging mobile applications and its website to engage customers and streamline the insurance-buying process. Its distribution strategy spans digital platforms, media channels, referrals, and partnerships with agencies. By applying technology to deliver personalized insurance solutions tailored to individual needs, Root aims to simplify insurance processes while expanding its market reach nationwide.

Root's revenue expanded at a 5-year CAGR of 34.3% from FY2020 to FY2025. Annual revenue grew from $345.4M in FY2021 to $455.0M in FY2023, and accelerated to $1.18B in FY2024 with 158.6% growth. In FY2025, revenue reached $1.52B, up 29.0%. Net income shifted from -$521.1M in FY2021 to $30.9M in FY2024 and $40.3M in FY2025, bringing net margin to 2.7%. Gross margin stood at 25.5% in FY2025, up from -15.0% in FY2021. For the trailing twelve months ended June 30, 2026, revenue totaled $1.57B with an operating margin of 8.9% and quarterly earnings growth of 15.5% year-over-year.

As of June 30, 2026, Root held $1.03B in cash and short-term investments against $310.8M in total debt, yielding net cash of $715.9M. Total assets stood at $1.67B, and shareholders' equity was $327.9M, resulting in a debt-to-equity ratio of 0.95 and a current ratio of 1.52. In FY2025, operating cash flow reached $206.5M and free cash flow was $192.4M, with capital expenditures of $14.1M. Over five years, the company's share count increased by 22.3%.

At a last close of $50.47 on October 16, 2026, Root's market capitalization was $781.9M with an enterprise value of $412.7M. The stock trades at a trailing P/E of 14.3x, compared to 12.1x for the median of its US-listed Financial Services peers. However, its forward P/E of 3.4x is below the peer median of 10.8x, and its price-to-sales of 0.5x sits below the peer median of 3.2x. Over the past year, ROOT shares returned -33.1%, lagging the S&P 500 (SPY) return of 16.8%.

Covering analysts assign Root 1 Buy and 5 Hold ratings, with 0 Sell ratings. The mean price target is $57.00, representing a 12.9% premium over the last close of $50.47. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $4.84 and revenue of $1.55B. For the following fiscal year, 2 analysts project EPS of $3.06 and revenue of $1.54B. Root has beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for November 4, 2026.

This page is an AI-written research summary of Root, Inc. (ROOT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ROOT income statement, ROOT balance sheet, ROOT key metrics, ROOT analyst forecast, ROOT chart. See the ROOT stock overview for the latest quote and news.