Roots Corporation (ROOT.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+199.9%

CA$12.27

vs CA$4.09 price

Levered DCF

CA$13.09

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.46

Distress zone

Rating

—

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	25.75×	-2.92×	50.77×	17.81×	5.94×	7.1×	-1.27×	14.26×
P/B	0.74×	0.61×	0.49×	0.63×	0.73×	0.57×	0.52×	0.75×
P/S	0.42×	0.37×	0.36×	0.44×	0.49×	0.39×	0.24×	0.49×
EV / EBITDA	4.62×	-27.42×	4.54×	4.73×	3.6×	4.11×	-18.14×	7.46×
Gross margin	51.3%	59.8%	58.0%	57.7%	59.5%	58.1%	53.4%	57.3%
Operating margin	5.3%	5.2%	4.6%	6.7%	14.6%	10.4%	-3.7%	6.6%
Net margin	1.7%	-12.7%	0.7%	2.5%	8.3%	5.4%	-18.8%	3.5%
Current ratio	1.3×	1.39×	1.33×	1.28×	1.27×	0.95×	0.8×	1.26×
Debt / equity	0.68×	0.75×	0.65×	0.73×	0.8×	1.05×	1.65×	0.46×
Interest coverage	1.79×	1.46×	1.21×	2.1×	4.54×	2.12×	-0.81×	4.75×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	3.0%	-21.0%	1.0%	3.6%	12.2%	8.0%	-41.2%	5.3%
Return on invested capital	3.7%	3.5%	2.5%	3.7%	8.3%	5.2%	-2.5%	4.3%
Return on assets	1.5%	-10.2%	0.5%	1.7%	5.8%	3.4%	-14.1%	3.0%
Free cash flow yield	21.6%	26.3%	36.2%	19.3%	38.4%	51.2%	22.5%	-11.3%
Earnings yield	4.0%	-34.3%	2.0%	5.6%	16.8%	14.1%	-78.7%	7.0%
Enterprise value	CA$195.6M	CA$183.3M	CA$190.4M	CA$224.2M	CA$250.3M	CA$255.9M	CA$325.7M	CA$257.9M
Net debt / EBITDA	1.84×	-12.85×	2.31×	2.22×	1.65×	2.62×	-13.75×	2.77×
Cash conversion cycle (days)	56	56	46	60	51	62	55	78