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Upturn AI SWOT - About
ROOT 
Root Inc (ROOT)
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Upturn Advisory Summary
04/01/2025: ROOT (4-star) is a REGULAR-BUY. BUY since 22 days. Profits (0.80%). Updated daily EoD!
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
AI Based Fundamental Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Analysis of Past Performance
Type Stock | Historic Profit 129.62% | Avg. Invested days 33 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.95B USD | Price to earnings Ratio 70.27 | 1Y Target Price 96.6 |
Price to earnings Ratio 70.27 | 1Y Target Price 96.6 | ||
Volume (30-day avg) 847431 | Beta 2.49 | 52 Weeks Range 34.04 - 181.14 | Updated Date 04/1/2025 |
52 Weeks Range 34.04 - 181.14 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.83 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.48% | Operating Margin (TTM) 10.71% |
Management Effectiveness
Return on Assets (TTM) 3.46% | Return on Equity (TTM) 10.42% |
Valuation
Trailing PE 70.27 | Forward PE 5.8 | Enterprise Value 1629088000 | Price to Sales(TTM) 1.66 |
Enterprise Value 1629088000 | Price to Sales(TTM) 1.66 | ||
Enterprise Value to Revenue 1.38 | Enterprise Value to EBITDA - | Shares Outstanding 11200000 | Shares Floating 9446496 |
Shares Outstanding 11200000 | Shares Floating 9446496 | ||
Percent Insiders 4.89 | Percent Institutions 53.49 |
Analyst Ratings
Rating 3.5 | Target Price 76.2 | Buy 1 | Strong Buy 1 |
Buy 1 | Strong Buy 1 | ||
Hold 4 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Root Inc
Company Overview
History and Background
Root Inc. was founded in 2015 and went public in October 2020. Root aims to disrupt the car insurance industry by using smartphone technology and data to assess driving behavior and offer personalized insurance rates.
Core Business Areas
- Auto Insurance: Offers auto insurance policies directly to consumers, utilizing a mobile app to gather driving data and set rates.
- Renters Insurance: Provides renters insurance coverage.
Leadership and Structure
Alex Timm is the CEO and co-founder. The company has a typical corporate structure with departments such as technology, underwriting, sales, marketing, and finance.
Top Products and Market Share
Key Offerings
- Auto Insurance: Root's primary offering is car insurance, where rates are determined based on a driving test conducted through their mobile app. Market share is relatively small, with estimates under 1% of the US auto insurance market. Competitors include GEICO (BRK.A), State Farm, Progressive (PGR), and Allstate (ALL).
- Renters Insurance: Root also offers renters insurance. Market share is smaller than auto insurance. Competitors include Lemonade (LMND), Progressive (PGR) and Allstate (ALL)
Market Dynamics
Industry Overview
The auto insurance industry is highly competitive and heavily regulated. The industry is experiencing disruption from technology and new entrants.
Positioning
Root positions itself as a tech-driven, customer-centric insurer that can offer more accurate and personalized rates based on driving behavior. Its competitive advantage lies in its technology and data analytics capabilities.
Total Addressable Market (TAM)
The total addressable market for auto insurance in the US is estimated to be hundreds of billions of dollars annually. Root is positioned to capture a portion of this market through its technology-driven approach.
Upturn SWOT Analysis
Strengths
- Innovative technology platform
- Data-driven pricing model
- Strong brand recognition among target demographic
- Direct-to-consumer approach
Weaknesses
- Lack of profitability
- High customer acquisition costs
- Limited product diversification
- Relatively small market share
Opportunities
- Expansion into new geographic markets
- Partnerships with other tech companies
- Development of new insurance products
- Improved customer retention through enhanced user experience
Threats
- Intense competition from established insurers
- Changes in regulations
- Economic downturn
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- BRK.A
- PGR
- ALL
- LMND
Competitive Landscape
Root faces significant competition from established insurers with large marketing budgets and brand recognition. Its technology is a potential advantage, but its lack of profitability and small market share are disadvantages.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by increased customer acquisition, but profitability remains a challenge.
Future Projections: Future growth is dependent on Root's ability to control costs, improve customer retention, and expand into new markets. Analyst estimates vary.
Recent Initiatives: Recent initiatives include efforts to reduce expenses, improve underwriting accuracy, and expand partnerships.
Summary
Root Inc. is an innovative company attempting to disrupt the car insurance market with technology. However, it faces significant challenges in terms of profitability and competition. The company needs to improve its cost structure and customer retention to achieve sustainable growth. It's a high risk company with great potential if they manage their losses.
Similar Companies
ALL
The Allstate Corporation
ALL
The Allstate Corporation
LMND
Lemonade Inc
LMND
Lemonade Inc
PGR
Progressive Corp
PGR
Progressive Corp
Sources and Disclaimers
Data Sources:
- SEC Filings
- Company Investor Relations
- Third-Party Market Research Reports
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market conditions and company performance can change rapidly.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Root Inc
Exchange NASDAQ | Headquaters Columbus, OH, United States | ||
IPO Launch date 2020-10-28 | Co-Founder, CEO & Chairman Mr. Alexander Edward Timm | ||
Sector Financial Services | Industry Insurance - Property & Casualty | Full time employees 1021 | Website https://www.joinroot.com |
Full time employees 1021 | Website https://www.joinroot.com | ||
Root, Inc. provides insurance products and services in the United States. The company offers automobile and renters insurance products. It operates a direct-to-consumer model; and serves customers primarily through mobile applications and its website. The company's direct distribution channels also cover digital media, independent agents, and referrals, as well as distribution partners. Root, Inc. was incorporated in 2015 and is headquartered in Columbus, Ohio.
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