Roots Corp Stock Buy Hold or Sell Recommendation
| ROOT Stock | CAD 2.21 0.05 2.21% |
Assuming the 90 days trading horizon and your complete indifference towards market risk, our recommendation regarding Roots Corp is 'Cautious Hold'. The recommendation algorithm takes into account all of Roots Corp's available fundamental, technical, and predictive indicators you will find on this site.
Check out Roots Corp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Roots and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Roots Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Roots |
Execute Roots Corp Buy or Sell Advice
The Roots recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Roots Corp. Macroaxis does not own or have any residual interests in Roots Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Roots Corp's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Insignificant | Details | |
Volatility | Unstable | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Roots Corp Trading Alerts and Improvement Suggestions
| Roots Corp is unlikely to experience financial distress in the next 2 years | |
| Roots Corp has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Roots Corp has accumulated 124.88 M in total debt with debt to equity ratio (D/E) of 127.5, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Roots Corp has a current ratio of 0.86, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Roots Corp until it has trouble settling it off, either with new capital or with free cash flow. So, Roots Corp's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Roots Corp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Roots to invest in growth at high rates of return. When we think about Roots Corp's use of debt, we should always consider it together with cash and equity. | |
| About 14.0% of Roots Corp outstanding shares are owned by corporate insiders |
Roots Corp Returns Distribution Density
The distribution of Roots Corp's historical returns is an attempt to chart the uncertainty of Roots Corp's future price movements. The chart of the probability distribution of Roots Corp daily returns describes the distribution of returns around its average expected value. We use Roots Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Roots Corp returns is essential to provide solid investment advice for Roots Corp.
| Mean Return | 0.08 | Value At Risk | -3.3 | Potential Upside | 4.15 | Standard Deviation | 2.26 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Roots Corp historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Roots Corp Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 9.4M | (4.5M) | 1.1M | (13.7M) | 18.8M | 19.8M | |
| Change In Cash | 4.1M | 15.4M | 25.0M | (2.2M) | (3.9M) | (3.7M) | |
| Net Borrowings | (345K) | (13.4M) | (31.4M) | (25.5M) | (23.0M) | (21.8M) | |
| Free Cash Flow | 17.7M | 47.5M | 52.1M | 23.0M | 33.9M | 24.3M | |
| Depreciation | 39.6M | 33.3M | 30.0M | 29.3M | 29.7M | 24.5M | |
| Other Non Cash Items | 65.1M | (5.8M) | (1.9M) | (4.7M) | (860K) | (817K) | |
| Capital Expenditures | 22.3M | 3.4M | 4.4M | 6.3M | 4.8M | 9.6M | |
| Net Income | (62.0M) | 13.1M | 22.8M | 6.7M | 1.8M | 2.0M | |
| End Period Cash Flow | (6.3M) | 9.2M | 34.2M | 31.9M | 28.0M | 15.3M | |
| Change To Netincome | 4.8M | 54.1M | 166K | 141K | 162.2K | 154.0K | |
| Investments | (22.3M) | (4.0M) | (4.4M) | (6.3M) | (5.1M) | (5.4M) |
Roots Corp Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Roots Corp or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Roots Corp's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Roots stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.15 | |
β | Beta against Dow Jones | -0.64 | |
σ | Overall volatility | 2.27 | |
Ir | Information ratio | -0.02 |
Roots Corp Volatility Alert
Roots Corp currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of 0.15. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Roots Corp's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Roots Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Roots Corp Fundamentals Vs Peers
Comparing Roots Corp's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Roots Corp's direct or indirect competition across all of the common fundamentals between Roots Corp and the related equities. This way, we can detect undervalued stocks with similar characteristics as Roots Corp or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Roots Corp's fundamental indicators could also be used in its relative valuation, which is a method of valuing Roots Corp by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Roots Corp to competition |
| Fundamentals | Roots Corp | Peer Average |
| Return On Equity | 0.0058 | -0.31 |
| Return On Asset | 0.0229 | -0.14 |
| Profit Margin | 0 % | (1.27) % |
| Operating Margin | (0.1) % | (5.51) % |
| Current Valuation | 204.81 M | 16.62 B |
| Shares Outstanding | 40.25 M | 571.82 M |
| Shares Owned By Insiders | 14.17 % | 10.09 % |
| Shares Owned By Institutions | 51.02 % | 39.21 % |
| Number Of Shares Shorted | 744.82 K | 4.71 M |
| Price To Earning | 15.41 X | 28.72 X |
| Price To Book | 0.51 X | 9.51 X |
| Price To Sales | 0.35 X | 11.42 X |
| Revenue | 262.67 M | 9.43 B |
| Gross Profit | 160.82 M | 27.38 B |
| EBITDA | 42.4 M | 3.9 B |
| Net Income | 1.84 M | 570.98 M |
| Cash And Equivalents | 495 K | 2.7 B |
| Cash Per Share | 0.01 X | 5.01 X |
| Total Debt | 124.88 M | 5.32 B |
| Debt To Equity | 127.50 % | 48.70 % |
| Current Ratio | 0.88 X | 2.16 X |
| Book Value Per Share | 4.41 X | 1.93 K |
| Cash Flow From Operations | 38.7 M | 971.22 M |
| Short Ratio | 195.49 X | 4.00 X |
| Earnings Per Share | 0.01 X | 3.12 X |
| Price To Earnings To Growth | (0.55) X | 4.89 X |
| Target Price | 3.25 | |
| Number Of Employees | 1.82 K | 18.84 K |
| Beta | 2.41 | -0.15 |
| Market Capitalization | 86.54 M | 19.03 B |
| Total Asset | 369.86 M | 29.47 B |
| Retained Earnings | (1.58 M) | 9.33 B |
| Working Capital | 18.68 M | 1.48 B |
Roots Corp Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Roots . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Roots Corp Buy or Sell Advice
When is the right time to buy or sell Roots Corp? Buying financial instruments such as Roots Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Other Information on Investing in Roots Stock
Roots Corp financial ratios help investors to determine whether Roots Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Roots with respect to the benefits of owning Roots Corp security.