Executive Summary
Roots Corporation, together with its subsidiaries, provides apparel, leather goods, footwear, and accessories under the Roots brand.
Risk Analysis
Snowflake Analysis
Overvalued with worrying balance sheet.
Share Price & News
How has Roots's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ROOT's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
7.8%
ROOT
-0.5%
CA Specialty Retail
1.0%
CA Market
1 Year Return
-64.0%
ROOT
-17.2%
CA Specialty Retail
-4.7%
CA Market
Return vs Industry: ROOT underperformed the Canadian Specialty Retail industry which returned -18.8% over the past year.
Return vs Market: ROOT underperformed the Canadian Market which returned -5.8% over the past year.
Shareholder returns
| ROOT | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.8% | -0.5% | 1.0% |
| 30 Day | -1.6% | 6.4% | 5.2% |
| 90 Day | 22.8% | 24.2% | 11.1% |
| 1 Year | -64.0%-64.0% | -14.8%-17.2% | -1.3%-4.7% |
| 3 Year | n/a | -29.2%-34.9% | 10.0%-0.6% |
| 5 Year | n/a | -10.8%-22.5% | 31.0%11.0% |
Price Volatility Vs. Market
How volatile is Roots's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Is Roots (TSE:ROOT) Likely To Turn Things Around?5 months ago | Simply Wall St
Those Who Purchased Roots (TSE:ROOT) Shares A Year Ago Have A 52% Loss To Show For It6 months ago | Simply Wall St
Roots (TSE:ROOT) Use Of Debt Could Be Considered RiskyValuation
Is Roots undervalued compared to its fair value and its price relative to the market?
0.36x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: ROOT (CA$1.24) is trading above our estimate of fair value (CA$0.53)
Significantly Below Fair Value: ROOT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ROOT is unprofitable, so we can't compare its PE Ratio to the CA Specialty Retail industry average.
PE vs Market: ROOT is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ROOT's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ROOT is good value based on its PB Ratio (0.4x) compared to the CA Specialty Retail industry average (1.1x).
Next Steps
Future Growth
How is Roots forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
4.4%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if ROOT's forecast earnings growth is above the savings rate (1.7%).
Earnings vs Market: Insufficient data to determine if ROOT's earnings are forecast to grow faster than the Canadian market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ROOT's revenue (4.4% per year) is forecast to grow slower than the Canadian market (5.8% per year).
High Growth Revenue: ROOT's revenue (4.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if ROOT's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Roots performed over the past 5 years?
-59.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ROOT is currently unprofitable.
Growing Profit Margin: ROOT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ROOT is unprofitable, and losses have increased over the past 5 years at a rate of 59.4% per year.
Accelerating Growth: Unable to compare ROOT's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ROOT is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (1.2%).
Return on Equity
High ROE: ROOT has a negative Return on Equity (-41.36%), as it is currently unprofitable.
Next Steps
Financial Health
How is Roots's financial position?
Financial Position Analysis
Short Term Liabilities: ROOT's short term assets (CA$58.3M) do not cover its short term liabilities (CA$59.7M).
Long Term Liabilities: ROOT's short term assets (CA$58.3M) do not cover its long term liabilities (CA$204.9M).
Debt to Equity History and Analysis
Debt Level: ROOT's debt to equity ratio (71.2%) is considered high.
Reducing Debt: Insufficient data to determine if ROOT's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: ROOT's debt is well covered by operating cash flow (45.3%).
Interest Coverage: ROOT is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Roots's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ROOT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ROOT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ROOT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ROOT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ROOT's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.6yrs
Average management tenure
CEO
Meghan Roach
0.58
Tenure
Ms. Meghan Roach serves as Chief Executive Officer, President and Director of Roots Corporation since May 26, 2020. She had been Interim Chief Executive Officer of Roots Corporation since January 03, 2020 ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0.58yr | no data | no data | |
| Chief Financial Officer | 0.58yr | CA$83.46k | no data | |
| Chief e-Commerce & Customer Experience Officer | 1.75yrs | CA$472.27k | 0.011% CA$ 5.0k | |
| Head of Investor Relations | no data | no data | no data | |
| VP & General Counsel | no data | no data | no data | |
| Vice President of Marketing | 1.75yrs | no data | no data | |
| Vice President of Human Resources | no data | no data | no data | |
| Chief Product Officer | 0.083yr | no data | no data |
0.6yrs
Average Tenure
Experienced Management: ROOT's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0.58yr | no data | no data | |
| Independent Lead Director | 2.83yrs | CA$119.00k | no data | |
| Chairman of the Board | no data | no data | no data | |
| Independent Director | 3.33yrs | CA$105.00k | no data | |
| Independent Director | 2.83yrs | CA$115.00k | no data | |
| Independent Director | 2.17yrs | CA$105.00k | no data | |
| Independent Director | 2.83yrs | CA$104.00k | no data | |
| Director | 0.083yr | no data | no data |
2.8yrs
Average Tenure
53yo
Average Age
Experienced Board: ROOT's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Roots Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Roots Corporation
- Ticker: ROOT
- Exchange: TSX
- Founded: 1973
- Industry: Apparel Retail
- Sector: Retail
- Market Cap: CA$44.652m
- Shares outstanding: 42.12m
- Website: https://www.roots.com
Number of Employees
Location
- Roots Corporation
- 1400 Castlefield Avenue
- Toronto
- Ontario
- M6B 4C4
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ROOT | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Oct 2017 |
| 4RO | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Oct 2017 |
| RROT.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Oct 2017 |
Biography
Roots Corporation, together with its subsidiaries, provides apparel, leather goods, footwear, and accessories under the Roots brand. The company operates through two segments, Direct-To-Consumer, and Partn ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/04 23:44 |
| End of Day Share Price | 2020/08/04 00:00 |
| Earnings | 2020/05/02 |
| Annual Earnings | 2020/02/01 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.