ROOT

Root Inc

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Advanced Chart

116.720

-4.31(-3.561%)1D

Overview
Forecast
Valuation
Earnings

Line

Candle

YTD

High

119.2312

Open

116.945

VWAP

117.27

Vol

402.04K

Mkt Cap

1.79B

Low

115.110

Amount

47.15M

EV/EBITDA(TTM)

14.21

Total Shares

14.92M

1.56B

EV/OCF(TTM)

7.49

P/S(TTM)

1.58

Root, Inc. is a technology insurance company. It provides direct-to-consumer insurance products to customers. It offers auto and renters insurance products underwritten by Root Insurance Company and Root Property & Casualty. It primarily reaches customers through two channels: direct and partnership. The direct channel drives volume for high-intent customers, meeting customers on platforms that they use, such as search engines or select marketplace platforms, while actively shopping for insurance. The partnership channel provides differentiated access to high-intent customers, primarily in the automotive, financial services, and independent agent sectors. It provides automobile and renters insurance products primarily through its websites, mobile app, and partnership channel, including its embedded insurance product and its independent agent platform. It utilizes its platform to gather customer data in order to determine whether or not to write and how to price its insurance products.

Market Estimates

Earnings Estimates

Revenue

YoY Chg

EPS

YoYChg

FY2025Q2

FY2025Q3

FY2025Q4

338.35M

+16.99%

339.07M

+10.92%

347.13M

+6.25%

Estimates Revision

The market is revising Upward the revenue expectations for Root, Inc. (ROOT) for FY2025, with the revenue forecasts being adjusted by 7.49% over the past three months. During the same period, the stock price has changed by -14.57%.

Revenue Estimates for FY2025

Revise Upward

+7.49%

In Past 3 Month

Stock Price

Go Down

-14.57%

In Past 3 Month

4 Analyst Rating

24.01% Upside

Wall Street analysts forecast ROOT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ROOT is 144.75 USD with a low forecast of 118.00 USD and a high forecast of 170.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Buy

2 Hold

0 Sell

Moderate Buy

24.01% Upside

Current: 116.720

Low

118.00

Averages

144.75

High

170.00

24.01% Upside

Current: 116.720

Low

118.00

Averages

144.75

High

170.00

Wells Fargo

Equal Weight

downgrade

$142 -> $118

2025-07-10

Reason

Wells Fargo

Price Target

$142 -> $118

2025-07-10

downgrade

Equal Weight

Reason

Wells Fargo lowered the firm's price target on Root to $118 from $142 and keeps an Equal Weight rating on the shares ahead of quarterly results. The firm says the focus should be on pricing, loss trend, and reserves for P&C companies, organic and margin for brokers, and sales/VII/capital for life companies.

TD Cowen

Andrew Kligerman

Hold

upgrade

$51 -> $125

2025-07-08

Reason

TD Cowen

Andrew Kligerman

Price Target

$51 -> $125

2025-07-08

upgrade

Hold

Reason

TD Cowen analyst Andrew Kligerman raised the firm's price target on Root to $125 from $51 and keeps a Hold rating on the shares. The firm increased 2025 and 2026 earnings estimates to reflect reduced net loss and increased premium growth assumptions.

Keefe Bruyette

Tommy McJoynt

Outperform

upgrade

$150 -> $170

2025-05-09

Reason

Keefe Bruyette

Tommy McJoynt

Price Target

$150 -> $170

2025-05-09

upgrade

Outperform

Reason

Keefe Bruyette analyst Tommy McJoynt raised the firm's price target on Root to $170 from $150 and keeps an Outperform rating on the shares. The firm still sees significant upside to consensus estimates, the analyst tells investors in a research note.

Wells Fargo

Equal Weight

maintain

$105 -> $142

2025-05-08

Reason

Wells Fargo

Price Target

$105 -> $142

2025-05-08

maintain

Equal Weight

Reason

Wells Fargo raised the firm's price target on Root to $142 from $105 and keeps an Equal Weight rating on the shares. The firm notes the company reported operating income per share of $1.07, beating its 50c and consensus of 34c. The upside reflects better underwriting results. Root also saw strong PIF growth and this represented the third quarter in a row of positive earnings, Wells adds.

Keefe, Bruyette & Woods

Thomas McJoynt-Griffith

Buy

Maintains

$90 → $150

2025-04-22

Reason

Keefe, Bruyette & Woods

Thomas McJoynt-Griffith

Price Target

$90 → $150

2025-04-22

Maintains

Buy

Reason

Jefferies

Yaron Kinar

Strong Buy

Maintains

$115 → $150

2025-04-11

Reason

Jefferies

Yaron Kinar

Price Target

$115 → $150

2025-04-11

Maintains

Strong Buy

Reason

Jefferies raised the firm's price target on Root to $150 from $115 and keeps a Buy rating on the shares. Tariffs are a "manageable earnings risk for the well-capitalized and defensive" property and casualty group, the analyst tells investors in a research note. The firm says auto insurers have some ability to re-price quickly, and loss cost inflation concerns are already top of mind for the commercial group, "with any tariff impact likely to spur further discipline." It sees no notable effect in Q1 and remains most constructive on personal lines.

See All Ratings

Valuation Metrics

The current forward P/E ratio for Root Inc (ROOT.O) is 49.40, compared to its 5-year average forward P/E of -3.92. For a more detailed relative valuation and DCF analysis to assess Root Inc 's fair value, click here.

Forward PE

The forward P/E ratio is a valuation metric that divides a company's current stock price by its estimated future earnings per share over the next 12 months.

N/A

5Y Average PE

-3.92

Current PE

49.40

Overvalued PE

103.00

Undervalued PE

-110.83

Forward EV/EBITDA

The forward EV/EBITDA ratio is a valuation metric that divides a company's enterprise value (EV) by its estimated future earnings before interest, taxes, depreciation, and amortization (EBITDA) over the next 12 months.

N/A

5Y Average EV/EBITDA

5.21

Current EV/EBITDA

0.00

Overvalued EV/EBITDA

16.43

Undervalued EV/EBITDA

-6.02

Forward PS

The forward P/S ratio is a valuation metric that divides a company's current stock price by its estimated future sales (or revenue) per share over the next 12 months.

N/A

5Y Average PS

3.23

Current PS

0.00

Overvalued PS

8.45

Undervalued PS

-1.99