Root Inc. (Class A) (ROOT) earns a Roarable Rating of B- (Buy) with 70/100 RQD Confidence. High-quality cash engine (steady margins, 85% return on capital) with steady institutional support. The company’s underlying cash engine and institutional positioning keep the composite score in the Green Buy zone.
Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer
SEC Form 4 / 13F Thermometer: 85% Net Buy • Cannibal Buyback (-2.64% YoY Shares)
SEC XBRL FY 2025 (10-K): 13.6% FCF Margin ($206.5M FCF) & 52% Gross Margin
Put hedging (50% put share) caps near-term gamma upside (-9 pts vs max)
Even with a 70/100 (B-) score, ROOT faces multiple-compression risk if 20.8x trailing P/E re-rate toward historical sector medians or if hyperscaler/enterprise customer concentration slows in upcoming 10-Q filings.
Broader market pullbacks can still drag down strong stocks in the short run.
Dilution & Margin Drag: Cannibal Buyback (-2.64% YoY Shares) — any gross margin slip below 49.5% triggers an automatic RQD downgrade.
Technical & Forensic Kill-Switch: A daily close below the 50D SMA ($51.51) or 200D SMA ($54.23) invalidates the momentum regime and cuts Target Base ($56.63) toward Bear Floor ($44.06).
Root Inc. (Class A) (ROOT) surged +3.13% to $53.73, trading at 26% of its 52-week range ($40.91 – $91). High-quality cash engine (steady margins, 85% return on capital) with steady institutional support.
In a new op-ed, Timm shares how always on AI shopping could challenge brand loyalty, give drivers more power to compare prices, and change how insurers competeCOLUMBUS, Ohio, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Root, Inc.
COLUMBUS, Ohio, Oct. 22, 2026 (GLOBE NEWSWIRE) -- Root (NASDAQ: ROOT), the leading technology company in car insurance, today announced it will participate in two upcoming investor conferences. Management will have a pre
Wyoming drivers can now purchase Root car insurance in minutes as the technology company continues its expansion across the United StatesCOLUMBUS, Ohio, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Root, Inc. (NASDAQ: ROOT), the le
Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).
vs. +29.0% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).
No active Ellis Vennor swing setup published on ROOT today. View full Setup Ledger →
No direct multi-tier Butterfly edges indexed yet for ROOT. Explore sector supply chains on /butterfly.
Across 1096 tracked Financials securities in the Roarable RQD universe, Root Inc. (Class A) (ROOT) ranks #152 by composite RQD confidence (70/100, grade B-) and #591 by equity capitalization ($832.5M). Within this direct 5-issuer industry benchmark cohort, DGICA leads on earnings valuation at 8.8x trailing P/E, while ROOT leads on capital efficiency and profitability with 85.0% ROIC and — gross margin. ROOT currently leads its immediate peer cohort in composite quantitative strength at 70/100 (B-).
| Ticker / Company | Roarable Grade | RQD Score | Trailing P/E | Gross Margin | ROIC | 1D Change | Market Cap | Head-to-Head |
|---|---|---|---|---|---|---|---|---|
| ROOT
ACTIVE
Root Inc. (Class A) | B- | 70/100 | 20.8x | — | 85.0% | +3.13% | $832.5M | Benchmark Subject |
| DGICB Donegal Group Inc. (Class B) | D+ | 57/100 | 11.1x | — | 12.4% | -8.49% | $879.7M | /dgicb-vs-root → |
| EIG Employers Holdings Inc | D | 48/100 | 81.6x | — | 1.1% | -4.53% | $881.5M | /eig-vs-root → |
| HIPO Hippo Holdings Inc. | D+ | 58/100 | 15.7x | — | 14.4% | -1.46% | $980.6M | /hipo-vs-root → |
| DGICA Donegal Group Inc. (Class A) | C+ | 69/100 | 8.8x | — | 12.4% | +1.07% | $699.0M | /dgica-vs-root → |
In its most recent audited fiscal period (FY2025, filed 2025-12-31), Root Inc. (Class A) (ROOT) reported GAAP revenue of $1.52B (+29.0% vs. FY2024 revenue of $1.18B , and +233.4% cumulative change since FY2023) , GAAP net income of $40.0M, operating cash flow of $206.5M, and free cash flow of $206.5M (+5.7% YoY). On the balance sheet, ROOT closed FY2025 with $1.67B in total assets against $0 in total debt (Altman Z-Score: N/A, Piotroski F-Score: 6/9).
| Fiscal Period | Filing Date | Revenue | Net Income | Operating Cash Flow | Free Cash Flow | Total Assets | Total Debt |
|---|---|---|---|---|---|---|---|
| FY2025 (FY) | 2025-12-31 | $1.52B | $40.0M | $206.5M | $206.5M | $1.67B | — |
| FY2024 (FY) | 2024-12-31 | $1.18B | $31.0M | $195.7M | $195.3M | $1.50B | — |
| FY2023 (FY) | 2023-12-31 | $455.0M | -$147.0M | -$33.6M | -$33.6M | — | — |
As of 2026-11-01, Root Inc. (Class A) (NASDAQ: ROOT) is rated B- (Buy / BUY) by Roarable's 5-pillar RQD engine with a composite confidence score of 70/100 at a spot price of $53.73 (+3.13% 1D, market cap $832.5M). Pillar breakdown: Fundamental Cash Engine 16/20, Institutional 13F & Options Flow 11/20, Executive Insider Alignment 13/20, FRED Macro Regime Fit 13/20, and SEC Balance-Sheet Forensics 17/20. Across 1096 tracked Financials issuers, ROOT ranks #152 in composite RQD confidence.
Within the Financials sector (Property-Casualty Insurers), ROOT carries a Roarable B- (70/100 RQD), trailing P/E of 20.8x, gross margin of —, and ROIC of 85.0%. By comparison, DGICB (Donegal Group Inc. (Class B)) holds a D+ grade (57/100 RQD, P/E 11.1x, ROIC 12.4%, cap $879.7M) and EIG (Employers Holdings Inc) posts a D grade (48/100 RQD, P/E 81.6x, ROIC 1.1%, cap $881.5M). Among the 5-stock peer group, DGICA leads on earnings multiple (8.8x) while ROOT leads on capital efficiency (85.0% ROIC).
Per ROOT's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001788882), Root Inc. (Class A) generated $1.52B in revenue (+29.0% YoY), $40.0M in net income, and $206.5M in free cash flow against $1.67B in total assets and $0 in total debt. Key quantitative strengths: Strong cash generator (steady margins)—profits are backed by real money, not accounting tricks.. Primary risk factors monitored: Broader market pullbacks can still drag down strong stocks in the short run.. Institutional options positioning shows a 50% call / 50% put premium split.
ROOT last traded at $53.73 (+3.13% on volume of 101,140 shares), positioning the stock +4.31% above its 50-day simple moving average ($51.51) and -0.92% below its 200-day simple moving average ($54.23). Across its 52-week range of $40.91 to $91.00, ROOT sits at the 25.6% percentile with a 14-day RSI of 52.5 (NEUTRAL RANGE) and an implied next-earnings move of ±7.1% ($49.92 to $57.54).
Why ROOT Stock surged +3.13% Today — RQD Quant Desk Flash. High-quality cash engine (steady margins, 85% return on capital) with steady institutional support.