Stock fact sheet · data as of
Root, Inc. (ROOT): fair value, margin of safety and Wheel Score
Ticker symbol ROOT · Financial Services · Insurance - Property & Casualty · United States · Growth
Is ROOT undervalued?
At 57.15 (close of 5 Nov 2026), ROOT trades 67% below the GLS average fair value of 175.19. That average comes from 7 models run on the latest filings, and 5 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Root, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 7 models disagree widely: Lynch gives 20.88 while Payback Time gives 460.00. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, ROOT is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 62, growth score 85, out of 100).
Nine valuation models for ROOT
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 49.94 | -13% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 84.23 | +47% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 20.88 | -63% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 319.62 | +459% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 233.67 | +309% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 460.00 | +705% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 58.01 | +2% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -8.72 | -115% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 54.00 | -6% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: ROOT passes 4 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 2.5 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are moderate - ROIC 6.7%, ROE 10.2%, ROA 2.6% - with debt at 0.51 times equity and a free-cash-flow yield of 22.9%.
Root, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain.
Institutional ownership scores 8/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 6.7% |
|---|---|---|---|
| GLS Moat | 2.5 / 10 | ROE | 10.2% |
| Debt / equity | 0.51 | ROA | 2.6% |
| Free-cash-flow yield | 22.9% | Payout ratio | 0% |
| Institutions | 8 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 35: Weak
ROOT scores 35 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 4, financially healthy - Piotroski 4/9 (under 6); and filter 7, a premium worth selling - implied volatility 95% (over 80%); and filter 8, big enough - market cap $782M (under $1.0B), and the parts are thin too - value strong, premium fair, moat weak, health fair, red flags strong, option trading fair, stability weak. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 95%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is 5,671 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 202k shares a day on a market cap of $782M, with a beta of 3.04 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 4/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 95% (over 80%) |
| 8 | Big enough | Fails | market cap $782M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 67% below fair value | |
| Premium | Fair | implied volatility 95% | |
| Moat | Weak | moat 2.5/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Fair | 2,213 contracts a day, 5,671 open interest | |
| Stability | Weak | beta 3.04, $782M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for ROOT in the nightly calendar.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Insurance - Property & Casualty
The 12 companies below are the closest to Root, Inc. by market cap within the Insurance - Property & Casualty industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MHLA Maiden Holdings, Ltd. 6.625 NT 2046 | 9.13 | 13.73 | +34% | 23No options | $790M |
| DGICB Donegal Group Inc. | 24.19 | 60.52 | +60% | 32No options | $791M |
| DGICA Donegal Group Inc. | 19.10 | 54.06 | +65% | 45Weak | $709M |
| HIPO Hippo Holdings Inc. | 35.88 | 60.26 | +40% | 44Weak | $955M |
| HRTG Heritage Insurance Holdings, Inc. | 35.73 | 200.07 | +82% | 83Good | $1.1B |
| AII American Integrity Insurance Group, Inc. | 29.13 | 131.80 | +78% | 36No options | $571M |
| BOW Bowhead Specialty Holdings Inc. | 34.10 | 98.36 | +65% | 33No options | $1.1B |
| ASIC Ategrity Specialty Holdings LLC | 24.46 | 60.93 | +60% | 34No options | $1.2B |
| ACIC American Coastal Insurance Corporation | 10.64 | 37.28 | +71% | 45Weak | $516M |
| UFCS United Fire Group, Inc. | 49.32 | 147.50 | +67% | 47Weak | $1.3B |
| AFGE American Financial Group, Inc. | 15.55 | 120.70 | +87% | 35No options | $1.3B |
| UVE Universal Insurance Holdings, Inc. | 48.78 | 213.39 | +77% | 54Fair | $1.3B |
⚖ Compare ROOT with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about ROOT
Is ROOT undervalued right now?
By the GLS models, yes: at 57.15 the stock is 67% below the average fair value of 175.19 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of ROOT and what does it mean?
ROOT scores 35 out of 100 (Weak) - it fails Wheel Trade Filters 4, 7, 8. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for ROOT?
175.19 per share as of 5 Nov 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Root, Inc. report earnings next?
No upcoming earnings date is recorded for ROOT in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does ROOT have listed options, and how liquid are they?
Yes. The nightly snapshot found 54 listed contracts with 5,671 open interest across all expiries and implied volatility of 95% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.