Root Inc. Class A Common Stock (ROOT)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business. Root sells auto and renters insurance direct to consumers and through partners. That is a crowded, price-competitive field, and I see no clear durable moat from the disclosed figures. The record is a turnaround: in FY2023, the company reported revenue of $455.0M and a net loss of $147.4M, or diluted EPS of -$10.24. By FY2025, revenue was $1.5B and net income was $40.3M, or diluted EPS of $2.36. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $389.2M and net income was $25.4M, or diluted EPS of $1.49. Fiscal Q1 2026 was stronger at $35.9M of net income, but fiscal Q3 2025 had a $5.4M loss. So profits are improving but not consistent. At the 2026-10-13 close of $48.75, FairStock calculates a P/E of 13.62, P/B of 2.30, ROE of 15.37%, ROCE of 3.31%, and a PEG of 0.88. The P/E and PEG look reasonable if profits persist; P/B is no asset bargain. Debt-to-equity of 0.45 is manageable, but the Piotroski F-Score is 5/9 and beta is 2.92. Comparing fiscal Q2 2026 with fiscal Q2 2025, revenue edged up from $382.9M to $389.2M while net income rose from $22.0M to $25.4M. The 52-week range is $40.91 to $91.00, so the shares are near the low. CET1, NIM, and combined ratio are not in the data; without underwriting detail, I cannot verify the quality of the recent profit.

In plain English: Root sells car and renters insurance, mainly online and through partners. The business looks better than it did a few years ago: it lost a lot of money in 2023 but has made small profits in recent years and in the latest quarter. At about $48.75 a share, the price looks moderate compared with those profits and not obviously cheap, especially because sales are barely growing.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer