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Roots

TSX:ROOT
Snowflake Description

Good value with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ROOT
TSX
CA$147M
Market Cap
  1. Home
  2. CA
  3. Retail
Company description

Roots Corporation, together with its subsidiaries, provides a portfolio of apparel, leather goods, accessories, and footwear products under the Roots brand. The last earnings update was 45 days ago. More info.


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  • Roots has significant price volatility in the past 3 months.
ROOT Share Price and Events
7 Day Returns
-2.6%
TSX:ROOT
3.5%
CA Specialty Retail
2.9%
CA Market
1 Year Returns
-68.1%
TSX:ROOT
-31.3%
CA Specialty Retail
-11.2%
CA Market
ROOT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Roots (ROOT) -2.6% 10.2% -33.3% -68.1% - -
CA Specialty Retail 3.5% 2.3% -15.1% -31.3% 5.5% -15.1%
CA Market 2.9% 2.8% -4.6% -11.2% 25.5% 1.3%
1 Year Return vs Industry and Market
  • ROOT underperformed the Specialty Retail industry which returned -31.3% over the past year.
  • ROOT underperformed the Market in Canada which returned -11.2% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

ROOT Value

 Is Roots undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Roots to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Roots.

TSX:ROOT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.4%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:ROOT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 8.1%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.701 (1 + (1- 26.5%) (91.04%))
1.171
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.171 * 8.05%)
11.38%

Discounted Cash Flow Calculation for TSX:ROOT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Roots is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:ROOT DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (CAD, Millions) -7.30 18.43 21.00 24.57 28.50
Source Analyst x3 Analyst x3 Analyst x1 Est @ 17%, capped from 17.15% Est @ 16%, capped from 17.15%
Present Value
Discounted (@ 11.38%)
-6.56 14.85 15.20 15.97 16.63
Present value of next 5 years cash flows CA$56.10
TSX:ROOT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= CA$28.50 × (1 + 1.95%) ÷ (11.38% – 1.95%)
CA$308.19
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= CA$308.19 ÷ (1 + 11.38%)5
CA$179.83
TSX:ROOT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= CA$56.10 + CA$179.83
CA$235.93
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$235.93 / 42.12
CA$5.6
TSX:ROOT Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$5.60
Current discount Discount to share price of CA$3.68
= -1 x (CA$3.68 - CA$5.60) / CA$5.60
34.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Roots is available for.
Intrinsic value
34%
Share price is CA$3.68 vs Future cash flow value of CA$5.6
Current Discount Checks
For Roots to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Roots's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Roots's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Roots's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Roots's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:ROOT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-11-03) in CAD CA$0.33
TSX:ROOT Share Price ** TSX (2019-01-18) in CAD CA$3.68
Canada Specialty Retail Industry PE Ratio Median Figure of 7 Publicly-Listed Specialty Retail Companies 12.76x
Canada Market PE Ratio Median Figure of 557 Publicly-Listed Companies 13.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Roots.

TSX:ROOT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ROOT Share Price ÷ EPS (both in CAD)

= 3.68 ÷ 0.33

11.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Roots is good value based on earnings compared to the CA Specialty Retail industry average.
  • Roots is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Roots's expected growth come at a high price?
Raw Data
TSX:ROOT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
13.1%per year
North America Specialty Retail Industry PEG Ratio Median Figure of 60 Publicly-Listed Specialty Retail Companies 1.44x
Canada Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 0.98x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Roots, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Roots's assets?
Raw Data
TSX:ROOT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-11-03) in CAD CA$4.66
TSX:ROOT Share Price * TSX (2019-01-18) in CAD CA$3.68
Canada Specialty Retail Industry PB Ratio Median Figure of 11 Publicly-Listed Specialty Retail Companies 1.42x
Canada Market PB Ratio Median Figure of 2,292 Publicly-Listed Companies 1.5x
TSX:ROOT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ROOT Share Price ÷ Book Value per Share (both in CAD)

= 3.68 ÷ 4.66

0.79x

* Primary Listing of Roots.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Roots is good value based on assets compared to the CA Specialty Retail industry average.
X
Value checks
We assess Roots's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Roots has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ROOT Future Performance

 How is Roots expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

  • No analysts cover Roots, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Roots expected to grow at an attractive rate?
  • Roots's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Roots's earnings growth is positive but not above the Canada market average.
  • Roots's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:ROOT Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:ROOT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 13.1%
TSX:ROOT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 6.5%
Canada Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 13.9%
Canada Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:ROOT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:ROOT Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-01-31 368 38 2
2020-01-31 358 42 9
2019-01-31 329 27 9
TSX:ROOT Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-11-03 328 16 14
2018-08-04 331 22 16
2018-05-05 329 26 17
2018-02-03 326 30 18
2017-10-28 307 27 14
2017-07-29 297 29 15
2017-04-29 284 34 11
2017-01-28 282 30 8
2016-01-30 184 36 -10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Roots's earnings are expected to grow by 13.1% yearly, however this is not considered high growth (20% yearly).
  • Roots's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:ROOT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Roots Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ROOT Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-01-31
2020-01-31
2019-01-31
TSX:ROOT Past Financials Data
Date (Data in CAD Millions) EPS *
2018-11-03 0.33
2018-08-04 0.39
2018-05-05 0.41
2018-02-03 0.42
2017-10-28 0.33
2017-07-29 0.08
2017-04-29 3.02
2017-01-28 0.20
2016-01-30 -0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Roots will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Roots's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Roots has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ROOT Past Performance

  How has Roots performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Roots's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Unable to establish if Roots's year on year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.
  • Unable to compare Roots's 1-year earnings growth to the 5-year average as it has been trading publicly for less than 3 years.
  • Roots's 1-year earnings growth is negative, it can't be compared to the CA Specialty Retail industry average.
Earnings and Revenue History
Roots's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Roots Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ROOT Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-11-03 328.23 13.99 153.09
2018-08-04 330.94 16.17 148.07
2018-05-05 328.86 17.02 144.65
2018-02-03 326.06 17.50 140.55
2017-10-28 307.21 13.83 132.74
2017-07-29 296.90 14.76 127.92
2017-04-29 284.45 10.53 123.35
2017-01-28 281.89 8.19 121.22
2016-01-30 184.20 -10.43 63.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Roots has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Roots used its assets less efficiently than the CA Specialty Retail industry average last year based on Return on Assets.
  • Unable to establish if Roots improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Roots's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Roots has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ROOT Health

 How is Roots's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Roots's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Roots is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Roots's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Roots's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Roots Company Filings, last reported 2 months ago.

TSX:ROOT Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-11-03 196.36 134.22 0.47
2018-08-04 193.40 122.62 0.38
2018-05-05 195.78 99.01 2.89
2018-02-03 198.97 85.36 1.81
2017-10-28 178.32 124.29 1.03
2017-07-29 171.49 122.00 0.44
2017-04-29 201.18 104.92 25.26
2017-01-28 201.18 104.92 25.26
2016-01-30 192.28 108.02 8.48
  • Roots's level of debt (68.4%) compared to net worth is high (greater than 40%).
  • Unable to establish if Roots's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (12.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.9x coverage).
X
Financial health checks
We assess Roots's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Roots has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ROOT Dividends

 What is Roots's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Roots dividends. Estimated to be 0% next year.
If you bought CA$2,000 of Roots shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Roots's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Roots's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:ROOT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
Canada Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.4%
Canada Market Average Dividend Yield Market Cap Weighted Average of 328 Stocks 3.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.2%
Canada Top 25% Dividend Yield 75th Percentile 6.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:ROOT Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-01-31
2020-01-31
2019-01-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Roots has not reported any payouts.
  • Unable to verify if Roots's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Roots's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Roots has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Roots's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Roots's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Roots afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Roots has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ROOT Management

 What is the CEO of Roots's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Gabel
COMPENSATION CA$1,480,477
AGE 55
TENURE AS CEO 2.9 years
CEO Bio

Mr. James Alan Gabel, also known as Jim, has been President, Chief Executive Officer of Roots Corp. since February 2016 and also serves as its Director since October 2017. Mr. Gabel has been the Chief Executive Officer and President at Roots Canada Ltd. since February 24, 2015. He served as the President of the Performance Group at Wolverine World Wide Inc. from June 2014 to February 4, 2016. He has more than 24 years' experience in the footwear and apparel industry. He served as the President of Reebok North America at Reebok International Ltd. since March 2008. He was responsible for all of the region's brand operations, including marketing, product merchandising, sales, finance, operations and owned retail stores. Prior to joining Reebok, he served as Senior Vice President of adidas America, where he was responsible for all brand operations for adidas and TaylorMade-adidas Golf in Canada and for directing the two largest sales accounts teams within the U.S. Prior to this role, he served as the President of adidas Canada Ltd., where he led the Canadian operation to four years of double digit gains. He joined adidas in 2001 as Vice President of Sales & Marketing, adidas Canada. Mr. Gabel held a number of senior executive roles at adidas Group from 2008 to 2014. Before joining the adidas Group, he held senior level positions at Champion Canada and Mizuno Canada. He serves as a Director of Keg Restaurants Ltd. and the Terry Fox Foundation. Mr. Gabel received a Bachelor of Business Administration degree from Wilfrid Laurier University.

CEO Compensation
  • Insufficient data for Jim to compare compensation growth.
  • Jim's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Roots management team in years:

2.4
Average Tenure
51
Average Age
  • The tenure for the Roots management team is about average.
Management Team

Jim Gabel

TITLE
President
COMPENSATION
CA$1M
AGE
55
TENURE
2.9 yrs

Jim Rudyk

TITLE
Chief Financial Officer
COMPENSATION
CA$1M
AGE
51
TENURE
3 yrs

Priscilla Shum

TITLE
Chief Merchandising Officer
COMPENSATION
CA$567K
AGE
52
TENURE
2.8 yrs

James Connell

TITLE
Chief e-Commerce & Customer Experience Officer
COMPENSATION
CA$710K
AGE
43
TENURE
0.2 yrs

Almira Cuizon

TITLE
Vice President of Retail Operations
COMPENSATION
CA$411K
AGE
45
TENURE
2.1 yrs

Kaleb Honsberger

TITLE
VP & General Counsel

Karen Zuccala

TITLE
Vice President of Marketing
TENURE
0.2 yrs

Michelle Lettner

TITLE
Vice President of Human Resources
Board of Directors Tenure

Average tenure and age of the Roots board of directors in years:

1.3
Average Tenure
52
Average Age
  • The average tenure for the Roots board of directors is less than 3 years, this suggests a new board.
Board of Directors

Erol Uzumeri

TITLE
Chairman of the Board
AGE
49

Jim Gabel

TITLE
President
COMPENSATION
CA$1M
AGE
55
TENURE
1.3 yrs

Richard Mavrinac

TITLE
Independent Director
COMPENSATION
CA$29K
AGE
65
TENURE
1.3 yrs

Dale Lastman

TITLE
Lead Director
COMPENSATION
CA$30K
AGE
60
TENURE
1.3 yrs

Eric Zinterhofer

TITLE
Director
AGE
46
TENURE
3.1 yrs

Joel Teitelbaum

TITLE
Independent Director
COMPENSATION
CA$101K
AGE
52
TENURE
1.8 yrs

Gregory David

TITLE
Director
COMPENSATION
CA$26K
AGE
50
TENURE
1.3 yrs

Mary Curran

TITLE
Director
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Roots insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
09. Jan 19 Buy Searchlight Capital Partners Company 24. Dec 18 27. Dec 18 59,000 CA$3.00 CA$174,265
22. Dec 18 Buy Searchlight Capital Partners Company 18. Dec 18 21. Dec 18 150,000 CA$3.36 CA$493,062
17. Dec 18 Buy Searchlight Capital Partners Company 11. Dec 18 17. Dec 18 300,000 CA$3.31 CA$974,544
11. Dec 18 Buy James Gabel Individual 10. Dec 18 10. Dec 18 50,000 CA$3.29 CA$164,495
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Management checks
We assess Roots's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Roots has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ROOT News

External News
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Simply Wall St News

Roots Corporation (TSE:ROOT) Is Trading At A 32.06% Discount

by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF). … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

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Here's How P/E Ratios Can Help Us Understand Roots Corporation (TSE:ROOT)

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Roots has a price to earnings ratio of 8.98, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

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Is Roots Corporation (TSE:ROOT) A Cash Cow?

I’ve analysed below, the health and outlook of Roots’s cash flow, which will help you understand the stock from a cash standpoint. … Roots generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … The two ways to assess whether Roots’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

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How Many Roots Corporation (TSE:ROOT) Shares Do Institutions Own?

If you want to know who really controls Roots Corporation (TSE:ROOT), then you'll have to look at the makeup of its share registry. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Taking a look at the our data on the ownership groups (below), it's seems that.

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How Did Roots Corporation's (TSE:ROOT) 8.4% ROE Fare Against The Industry?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every CA$1 worth of equity in the company, it was able to earn CA$0.084. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Roots Corporation (TSE:ROOT) Is Trading At A 27.98% Discount

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

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How Did Roots Corporation's (TSE:ROOT) 8.70% ROE Fare Against The Industry?

and want a simplistic look at the return on Roots Corporation (TSE:ROOT) stock. … With an ROE of 8.70%, Roots Corporation (TSE:ROOT) returned in-line to its own industry which delivered 10.50% over the past year. … But what is more interesting is whether ROOT can sustain or improve on this level of return.

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Will Roots Corporation (TSX:ROOT) Continue To Underperform Its Industry?

View our latest analysis for Roots Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of ROOT’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is assessed against cost of equity, which is measured using the Capital Asset Pricing Model (CAPM) – but let’s not dive into the details of that today. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity TSX:ROOT Last Perf Oct 27th 17 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient ROOT is with its cost management.

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ROOT Company Info

Map
Description

Roots Corporation, together with its subsidiaries, provides a portfolio of apparel, leather goods, accessories, and footwear products under the Roots brand. The company operates through two segments, Direct-To-Consumer (DTC), and Partners and Other. The DTC segment sells products through the company’s corporate retail stores and e-commerce. The Partners and Other segment engages primarily in the wholesale of Roots branded products to the company’s international operating partner. This segment is also involved in licensing Roots brand to select manufacturing partners, wholesaling Roots branded products to select retail partners, and selling custom Roots branded products to select business clients. It also offers leather products, such as jackets, bags, and accessories; sweats casual apparel; and kids and baby clothing. As of February 3, 2018, the company had 116 corporate retail stores in Canada, 3 corporate retail stores in the United States, 110 partner-operated stores in Taiwan, and 32 partner-operated stores in China, as well as an e-commerce platform that shipped company’s products to approximately 50 countries. Roots Corporation was founded in 1973 and is headquartered in Toronto, Canada.

Details
Name: Roots Corporation
ROOT
Exchange: TSX
Founded: 1973
CA$147,420,808
42,120,231
Website: http://www.roots.com
Address: Roots Corporation
1400 Castlefield Avenue,
Toronto,
Ontario, M6B 4C4,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX ROOT Common Shares The Toronto Stock Exchange CA CAD 25. Oct 2017
OTCPK RROT.F Common Shares Pink Sheets LLC US USD 25. Oct 2017
DB 4RO Common Shares Deutsche Boerse AG DE EUR 25. Oct 2017
Number of employees
Current staff
Staff numbers
2,450
Roots employees.
Industry
Apparel Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/19 00:56
End of day share price update: 2019/01/18 00:00
Last estimates confirmation: 2018/12/11
Last earnings filing: 2018/12/05
Last earnings reported: 2018/11/03
Last annual earnings reported: 2018/02/03


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.