TSX

Roots Corporation

ROOT.TO•Consumer Cyclical•Apparel - Retail
Current Price
$4.09
Today's Change
+0.00%
Market Cap
$160.32M
Volume
1.05K

💡 Quick Take

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.

Based on 27 data points⚠️Not financial advice

📊 Key Metrics

52 Week High$4.70
52 Week Low$2.82
Avg Volume17.48K
Beta0.53
Shares Outstanding39.20M

🔥 Valuation

Market Cap$160.32M
Enterprise Value$263.12M
P/E Ratio22.72
EV/EBITDA-25.48x
Dividend Yield0.00%

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🚩 Red Flags

🟠

High Debt Load

Debt of $106.7M is 27.1x the company's cash position of $3.9M.

🌟 Opportunities

🚀

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.

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