Root, Inc. (ROOT) Stock

Root, Inc. (ROOT) is a Financials stock trading at $55.64 (as of 2026-08-21), with a market capitalization of $957.01M and a trailing P/E of 16.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Root, Inc. provides insurance products and services in the United States. The company offers automobile, homeowners, and renters insurance products. The company operates a direct-to-consumer model and serves customers primarily through mobile applications, as well as through its website. Its direct distribution channels also cover digital, media, and referral channels, as well as distribution partners and agencies. The company was incorporated in 2015 and is headquartered in Columbus, Ohio.

Understand Root, Inc.: how it makes money

Root, Inc. provides automobile, homeowners, and renters insurance in the United States, selling policies through a direct-to-consumer model (mobile applications and a website) and also through distribution partners and agencies.

The profit model is structurally driven by underwriting performance as Root scales its Policies in Force, while managing pricing adequacy through rate filings and revisions (Rate Filings Implemented, Revised Contracts Filed, Rate Adequate Footprint) and using its usage-based insurance approach to improve predictive power over time.

Business quality (Solid): Segment-level revenue breakdown is not available in the provided facts (segments are empty), but the operational KPI set is rich for tracking scale, pricing actions, distribution, and usage-based model progress.

Valuation: At 16× earnings, ROOT trades 30% above the Insurance average (13×). Note: one-time items can distort reported P/E.

Bull case

Scaling the book of business: Policies in Force provide a direct operating read on how quickly Root is growing its insurance coverage.
Focus on pricing adequacy: Rate Adequate Footprint and related actions (Rate Filings Implemented, Revised Contracts Filed) suggest an emphasis on keeping pricing aligned with the company’s experience.
Distribution expansion through partners: Operational KPIs reference embedded product active states and Carvana channel share of new premium volume, indicating partner-driven distribution is part of the go-to-market.

Bear case

Execution risk in insurance pricing and filings: The company tracks Rate Adequate Footprint, Rate Filings Implemented, and Revised Contracts Filed, implying performance depends on ongoing pricing adequacy execution.
Dependency on model improvement over time: Usage-Based Insurance Model Predictive Power Improvement and Usage-Based Insurance Model 4.0 Active States indicate results depend on continued improvement and expansion of the usage-based approach.
Geographic and program scaling can be uneven: Root reports both Number of States and Embedded Product Active States, which can diverge and may affect how consistently distribution and product programs scale across locations.

Valuation — source: SEC EDGAR (first-party)
Price	$55.64
Market Cap	$957.01M
P/E Ratio	16.6
EV / EBITDA	6.0
Price / Book	2.94
Price / Sales	0.61
FCF Yield	18.8%
DCF Value (model)	$29.61
DCF Upside vs Price	-46.8%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.52B
Net Margin	2.7%
Revenue Growth (YoY)	12.6%
EPS Growth (YoY)	90.4%

Valuation vs Sector & Industry
Stock P/E	16.6
Sector P/E (Financials)	15.1
Industry P/E (Insurance)	13.0
vs Sector	9.7%
vs Industry	27.0%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	Ribbit Management Company, LLC ($54.44M)
Institutional Holders Tracked	10

Company
Sector	Financials
Industry	Insurance
CEO	Alexander Edward Timm
Employees	1,021
Country	US
IPO Date	2020-10-28

Related Companies (Business model: Property & Casualty Insurer; 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.