Fistein
11-06

$Root, Inc.(ROOT)$   200 Target Price by WallStreet analyst.

**Comprehensive Analysis of Root, Inc. (ROOT)**

The stock price as of 2025-10-16 is $79.49 with a market cap of $1.23B. The P/E ratio is 16.81, which is reasonable, and the EPS TTM is $4.73. The ROE is quite high at 27.53%, indicating efficient use of equity.

Recent news mentions expansion into Washington state, which completes their West Coast presence. That's a positive growth indicator.

The company's fundamentals look solid with a Price-to-Sales ratio of 0.90, suggesting it might be undervalued compared to industry peers. The Forward PE is 39.97, which is higher than the current P/E, so future earnings growth is expected.

Key Supporting Points for ROOT growth:

1. Financial Performance & Valuation

Profitability: ROOT reported a trailing EPS of $4.73 (TTM) with a ROE of 27.53%, reflecting efficient capital utilization.

Valuation:

P/E Ratio (TTM): 16.81x, below the sector median of ~25x, suggesting relative undervaluation.

Price-to-Sales (TTM): 0.90x, indicating potential upside compared to peers in the AI-related Fintech Industry.

Forward P/E: 39.97x (2025), signaling high growth expectations.

Market Position: $1.23B market cap with $983.87M in circulating liquidity, reflecting strong institutional confidence.

2. Growth Catalysts

Geographic Expansion: Recent expansion into Washington State completes its West Coast footprint, opening access to ~10M drivers.

Partnerships & Technology : AI-driven underwriting and embedded insurance partnerships (e.g., Carvana, Tesla) could drive premium growth in Q4-2025.

Earning Momentum: Root reported Q3 revenue of $387.8M , surpassing estimates of $366.5M , driven by a 27% YoY increase in total revenue and 29% growth in net earned premium.

Modified in.11-10
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Comments

  • miffsy
    11-06
    miffsy
    Impressive insights! Love the thorough analysis! [Applaud][Wow]
  • Ron Anne
    11-07
    Ron Anne
    0.9x P/S + AI underwriting? Undervalued gem, no doubt!
  • Phyllis Strachey
    11-07
    Phyllis Strachey
    ROOT’s 200 target + 27% ROE? Insane upside if growth hits!
  • chipzzy
    11-06
    chipzzy
    Strong potential
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