Back to Dashboard
36

ROOT

๐Ÿฆ Financial Services

Root, Inc.

Conservative #946Aggressive #705Moderate Risk
$51.88-10.12%
Day High$56.89
Day Low$51.84
Volume0.5M
Mkt Cap$711M
52W Low $5252W High $181
Market Cap
$766M
P/E Ratio
16.3
Sector avg: 26.8
Rev Growth
158.6%
Sector avg: 13.4%
Earnings Growth
121.0%
Profit Margin
3.9%
Sector avg: -2.8%
Debt/Equity
0.74

Why This Score

ROOT scores 36.6 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Strong profitability: ROE of 24.2% exceeds the 15% quality threshold.
  • High conviction (93/100) โ€” fundamental and ML signals agree on this stock.
Risk Factors
  • Liquidity concern: Limited trading volume or float results in a 5-point penalty for execution risk.

Moderate penalties (-5.4 points) reflect identified risk factors. The overall score balances these against the stock's fundamental strengths.

Score Breakdown

Overall Score36.6
Fundamental Score41.4
ML Score24.0

Score by Horizon

3 Month
59.5
6 Month
66.5
Primary
1 Year
70.0

Quality Assessment

C
Quality Grade
Average quality โ€” moderate profitability or leverage
1 quality flag detected โ€” see details below. These penalties are already factored into the final score.
Quality Flags
High accrual ratio (-260.1%) โ€” earnings quality concern

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
42
Neutral
Analyst (6.4%)
52
Neutral
Tradability (post-hoc)
55
Grade Clow float
Base
33.0
SHAP
+1.5
Factors
+0.8
Conviction
+1.7
Divergence
-0.4
Final
36.6
Positive adjustment
Negative adjustment
Base blend
Final score

Factor Breakdown

69AVG
Value71
Quality43
Growth100
Stability55
Investment78

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)71.0
Technical (Momentum, Weinstein, Volatility)30.0
External (Sentiment, Analyst, Macro)73.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
-1.2% to +2.9%
Medium-term
-1.3% to +5.0%
Long-term
-1.4% to +7.1%

ML Model Core Features100 trained inputs โ†’ ML Score: 24

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score51.8/100
Target Upside+35.4%
Coverage14 analysts
Market Sentiment
Sentiment Score41.5/100
News Volume1 articles
Technical Stage
Weinstein Stage4 โ€” Declining
12M Momentum-0.6%
6M Momentum-0.4%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration-20.2%
Momentum ConsistencyModerate (0.64)
Relative Strength vs Sector-65.5%
Trend Strength (ADX Proxy)Strong (5.0)
Momentum Quality-0.238
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
0%
Low risk
Sector RevGr Rank
P99
Revenue growth vs Financial Services peers
Sector PE Rank
P45
Valuation vs Financial Services peers
Sector FCF Rank
P93
Free cash flow vs Financial Services peers
Growth Deviation
+2.3ฯƒ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 41 relative to sector peers41/100
Machine learning ensemble ranks this stock at the 24th percentileP24
Blended score: 80% fundamental (41) + 20% ML (24) = 37.937.9
Risk assessment: low. Low vol 0.1%; Drawdown 58% โ†’ 0.0ptLow
Earnings quality grade C: mixed earnings quality, some red flags. Score adjusted by 0 pointsGrade C
SHAP feature alignment: +1.5pt (features align with model priorities)SHAP
Conviction adj: +1.7pt (conviction=N/A)Conviction
Divergence penalty: -0.4pt (ML 17pt lower)Divergence
Risk Factors
Quality concern: High accrual ratio (-260.1%) โ€” earnings quality concernFlag
Liquidity penalty: -5.0pt (grade C)Liquidity

Sector Peer Comparison(Financial Services โ€” Rank #257 of 356 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
ROOT36.616.3158.6%3.9%$766M
CME86.427.29.9%57.5%$114.0B
FHB84.911.83.2%24.2%$3.1B
ACT84.58.92.4%54.6%$6.1B
CINF84.210.711.4%18.9%$25.4B
SEIC82.214.010.7%27.3%$9.9B
TROW79.910.13.1%28.5%$20.5B
QQQX79.710.448.6%257.3%$1.4B
IBOC78.210.67.5%40.1%$4.2B
HWC77.812.2-1.5%24.1%$5.6B
FFIN77.518.811.7%30.7%$4.7B
TRMK77.111.934.8%19.3%$2.6B
NMIH77.17.78.4%55.1%$3.0B
EWBC76.712.74.6%28.3%$15.3B
WSFS76.312.8-3.1%21.1%$3.5B
MCHB76.1N/A123.7%23.2%$3.1B
Sector Average47.526.813.4%-2.8%โ€”

Market Sentimentvia FMP

Analyst Consensus
Hold14 analysts
Buy: 3Hold: 9Sell: 2
Price Target
$75consensus
Low $75Median $75High $75
+44.6% to consensus target

Company Overviewvia FMP

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.

CEO
Alexander Edward Timm
Employees
1,021
Beta
2.82
Industry
Insurance - Property & Casualty
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
35.1
Neutral
Trend
Bearish
10-day vs 50-day MA
From 52W High
-71.4%
High: $181.14
From 52W Low
+0.1%
Low: $51.84
Moving Averages
10-Day
$58.80
Below
20-Day
$59.70
Below
50-Day
$67.40
Below
200-Day
$94.40
Below
60-Day Support
$51.84
60-Day Resistance
$87.4
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 โ€” DecliningScore: 10/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Price vs 200 SMA
-45%
200 SMA Slope (60d)
-17.04%
Falling
Volume Ratio
1.34x
10d avg vs 50d avg
Days in Stage
100
Confidence: 90%

Entry & Exit Zones

Avoid
No Entry
โ€”
No entry โ€” active downtrend
Exit Target
โ€”
Exit position if held
Stop Level
โ€”
No stop โ€” exit recommended

Stage 4 downtrend โ€” price is below both SMA50 and SMA200 with a declining 200-day average. Capital preservation takes priority. Do not buy into a downtrend.

Technical zones only โ€” derived from moving averages and price structure. Not financial advice. Past technical patterns do not guarantee future performance.

Financial Statementslast 4 quarters via FMP

MetricQ4 2025Q3 2025Q2 2025Q1 2025
Revenue$397M$388M$383M$349M
Gross Profit$303M$81M$102M$107M
Operating Income$11M$-5M$22M$18M
Net Income$5M$-5M$22M$18M
EPS (Diluted)$0.31$-0.35$1.29$1.07
Gross Margin76.2%21.0%26.6%30.7%
Operating Margin2.6%-1.3%5.7%5.3%
Net Margin1.3%-1.4%5.7%5.3%

Why This Stock

Financial ServicesP/E ratio of 16.3Revenue growth 158.6%Valuation below sector median (P/E 16.3)

Tradability FilterGrade C โ€” 55/100Score impact: -4.5pt

Volume
58
278K avg/day
Dollar Vol
70
$15M/day
Float
25
13M shares
Mkt Cap
35
$766M
Range
100
234% spread
Composite Liquidity Score55/100
FDCBA
low float

Growth Projection Adjustment

0.7x dampening
weinstein basing

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
91.5%
Outstanding Shares
14M
Bid-Ask Spread
234.0%
Institutional Tradable
Limited

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.