ROOT

Based on Root, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

What does Root, Inc. do?

Root provides automobile, homeowners, and renters insurance directly to consumers through a mobile application and website. The company uses technology to assess driver behavior and risk, aiming to offer more personalized pricing than traditional insurers. Its direct distribution model bypasses the conventional agent network.

Does ROOT pay dividends?

Root does not pay a dividend. The company is in a growth phase and prioritizes reinvesting capital into its technology platform and customer acquisition efforts. Investors in ROOT are generally focused on long-term capital appreciation rather than income.

When does ROOT report earnings?

Root reports financial results on a quarterly basis, in line with standard US public company requirements. For exact dates and the most recent earnings releases, check Root's official investor relations page.

Is ROOT a good stock to buy?

ROOT carries a Good overall UQS Score, with particularly positive readings on Growth, Risk, and Valuation pillars. However, the Weak Moat and Neutral Quality ratings highlight real concerns about competitive durability. Whether it fits your portfolio depends on your risk tolerance and investment horizon. The full pillar breakdown is available to UQS Pro members.

Is ROOT overvalued?

The UQS Valuation pillar for ROOT is rated Good, suggesting the stock does not appear significantly overpriced relative to its fundamentals at current levels. That said, valuation for growth-stage insurers can shift quickly with changes in underwriting performance. The detailed valuation metrics are available inside the full UQS report.

How does ROOT compare to its competitors?

Root differentiates itself through its mobile-first, direct-to-consumer model, which contrasts with more traditional regional carriers like Heritage Insurance and Donegal Group. Bowhead Specialty focuses on commercial specialty lines rather than personal insurance. Root's technology-driven approach targets a different customer segment and cost structure than these peers.

What is ROOT's market cap bracket?

Root, Inc. is classified as a small-cap company. This means it carries higher volatility and liquidity risk compared to large or mega-cap insurers, but may also offer more room for growth if the business model continues to scale effectively.

Who founded Root, Inc.?

Root was founded by Alex Timm and Dan Manges. The company was incorporated in 2015 and is headquartered in Columbus, Ohio. Founding details are widely available through public sources and Root's own corporate history.

Is ROOT a long-term quality investment?

From a long-term quality perspective, ROOT's Good Growth and Risk pillar ratings are encouraging signs of operational progress. However, the Weak Moat rating suggests the company has not yet established strong competitive barriers. Long-term quality investors should weigh these factors carefully. The complete UQS analysis is available to Pro members.

What is the main competitive advantage of Root, Inc.?

Root's primary differentiator is its technology-driven, mobile-first distribution model, which allows it to reach customers directly and assess risk using behavioral data. This approach can lower acquisition costs compared to agent-based models. However, the UQS Moat pillar rates this advantage as Weak, reflecting how easily competitors can adopt similar digital strategies.

What sector does ROOT belong to?

Root, Inc. operates in the Financial Services sector, specifically within the personal lines insurance industry. It competes with both traditional regional insurers and newer technology-driven insurance platforms targeting direct-to-consumer distribution.

Root, Inc. has average quality metrics, with room for improvement in margins or capital efficiency.

Root, Inc. demonstrates healthy growth trends across revenue and earnings.

Root, Inc. has some risk factors including moderate leverage or solvency concerns.

Root, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Root, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ROOT.

The UQS (Unified Quality Score) for Root, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Root, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Root, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.