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Root

ROOT
49
Insurance - Property & Casualty · Financial Services
Price
$59.63
+0.20 (+0.34%)
Market Cap
$836.0M
Exchange
NASDAQ
Winston Score
49
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+24.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 13.8M (2021) → 17.2M (2025)

Root, Inc. provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. The company operates a direct-to-consumer model and serves customers primarily through mobile applications, as well as through its website. Its direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies. The company was incorporated in 2015 and is headquartered in Columbus, Ohio.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+12.6% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+90.4% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

9.9%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$609M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Root is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
42.5%
Healthy — 42.5% gross margin
Operating Margin
9.2%
Modest — 9.2% operating margin
ROCE
5.7%
Weak — 5.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+22.8%
Fast-growing sales (22.8% YoY)
EPS YoY
+2.0%
Flat earnings

Single-digit earnings growth — steady but not exciting.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
327%
Turns 327% of profit into real cash
FCF Margin
11.6%
Modest free cash flow (11.6%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.46
Conservative — low debt load (0.46)
Interest Cover
2.85x
Tight — interest eats into profit (2.9x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
16.9x
Fair value — P/E 16.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
-3.3
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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