Fundamentals snapshot
ROOT · NMS · Financial Services · Insurance - Property & Casualty
Current price
$51.76
52-week range
$40.91 - $91.00
Market cap
$801.93M
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net cash $322.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
Root, Inc. offers car and renters insurance, mainly selling policies through its website and mobile app, making its revenue primarily from insurance premiums. This approach matters because it allows them to reach customers directly and potentially offer more competitive pricing.
Root, Inc. was founded in 2015 with a mission to modernize the car insurance industry. The company recognized that traditional insurance companies often used outdated methods to price policies, which could lead to unfair premiums for good drivers. Root aimed to leverage technology, particularly smartphone data, to offer more personalized and affordable insurance rates. This tech-forward approach was a key differentiator from established players in the property and casualty insurance sector. The company's journey has been focused on building a digital-first platform to attract and retain customers.
Root, Inc. is an insurance company that sells car and renters insurance. Think of it like buying insurance for your car or apartment, but instead of talking to an agent or filling out a lot of paper forms, you do most of it through Root's website or a smartphone app. They use technology to understand how you drive and offer you a price based on that, aiming to be fairer to safe drivers. The company operates in the financial services sector, specifically within property and casualty insurance, which covers damage to things like cars and homes.
This is Root's primary business, offering car insurance policies to individuals. Customers can get quotes and manage their policies entirely through digital channels like the Root mobile app or website. The company uses telematics, which involves collecting data from a customer's smartphone (like driving habits and mileage), to help determine their insurance premium. This data-driven approach is intended to provide more accurate pricing compared to traditional methods that might rely more on factors like credit score or demographic information. This segment represents the core of Root's revenue and operations.
In addition to car insurance, Root also offers renters insurance. This type of insurance protects a renter's personal belongings within their rented property against events like theft or fire, and it can also provide liability coverage. Similar to their auto insurance, Root offers this product through its digital platforms, making it convenient for renters to sign up and manage their policies online. While a smaller part of the business compared to auto insurance, it diversifies Root's offerings within the personal insurance market.
Root's management is focused on refining its technology and data analytics to improve underwriting accuracy and customer acquisition efficiency. They are working to make the insurance quoting and purchasing process even smoother and more personalized for customers. A key strategy involves expanding their reach through partnerships, allowing them to offer their insurance products to a wider audience. The company is also concentrating on achieving profitability by carefully managing claims costs and operational expenses, aiming to demonstrate a sustainable business model in the competitive insurance landscape.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net cash $322.6M - more cash than debt. Interest coverage 2.9x.
Root, Inc.'s profit covers its interest bill about 2.9 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Total debt $197.80M Interest coverage 2.94x This is the baseline the peer rows are being compared against.
Total debt $51.10M Interest coverage -0.85x -100% vs ROOT This peer has almost no interest-payment cushion compared with ROOT.
Total debt $482.10M Interest coverage -23.85x -100% vs ROOT This peer has almost no interest-payment cushion compared with ROOT.
Total debt $258.31M Interest coverage 17.01x +478% vs ROOT Carries about 5.8x more debt cushion than ROOT.
What you should know
The numbers
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Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know