Roots Corp. (ROOT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Gildan Activewear, Inc.

iFabric Corp.

Unisync Corp.

Roots Corp.

Grounded People Apparel, Inc.

Why is Roots Corp. ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.28 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.28 times
The company has been able to generate a Return on Equity (avg) of 6.63% signifying low profitability per unit of shareholders funds

Flat results in Apr 25

ROCE(HY) Lowest at -19.69%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 60.85%, its profits have risen by 1719.8%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Roots Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Roots Corp.

-100.0%

1.49

40.26%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.98%

EBIT Growth (5y)

0.94%

EBIT to Interest (avg)

2.30

Debt to EBITDA (avg)

1.28

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.11

Tax Ratio

26.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

8.81%

ROE (avg)

6.63%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.94

EV to EBIT

12.05

EV to EBITDA

4.25

EV to Capital Employed

0.96

EV to Sales

0.71

PEG Ratio

Dividend Yield

ROCE (Latest)

7.92%

ROE (Latest)

12.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

14What is working for the Company

NET PROFIT(HY)

At CAD 20.39 MM has Grown at 256.04%

RAW MATERIAL COST(Y)

Fallen by -11.95% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.56%

-2What is not working for the Company

ROCE(HY)

Lowest at -19.69%

Here's what is working for Roots Corp.

Net Profit

At CAD 20.39 MM has Grown at 256.04%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (CAD MM)

Net Profit

Higher at CAD 20.39 MM

than preceding 12 month period ended Apr 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CAD MM)

Inventory Turnover Ratio

Highest at 3.56%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -11.95% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales