Roots Corporation designs and sells apparel and accessories under its brand in Canada and internationally. Key strengths include a solid gross margin of 58.3%, indicating effective cost management, while concerns arise from a negative net margin of -12.2% and low EBITDA margin of 3.4%, suggesting profitability challenges. The current ratio of 1.29 indicates adequate liquidity, but a quick ratio of 0.34 raises concerns about immediate cash availability. Overall, the company exhibits strong gross profitability but struggles with net income, highlighting a need for operational improvements.
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Debt of $106.7M is 27.1x the company's cash position of $3.9M.
Exceptional gross margin of 60.6% indicates strong pricing power and competitive moat.
Operating cash flow of $30.8M exceeds net income by 3428%, indicating high-quality earnings with strong cash conversion.
Strong free cash flow margin of 11.0% provides substantial resources for dividends, buybacks, or reinvestment.
Valuation, risk assessment, competitive positioning, and key insights — all in one report.
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Based on 2027-Q2 (August 1, 2026)