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Roots Corporation (ROOT) Fair Value & Analysis

Consumer Cyclical · CA · Market cap C$179M

RC Roots Corporation ROOT · TO
PriceC$4.09
Fair ValueC$2.90
Upside-29.1%
Quality97/100
Evidence: High Range C$1.96 – C$4.36

Fair value as of: Jun 24, 2026

From 23 valuation models · updated 5 days ago

Share price −3.5% over the past month.

Price vs Fair Value (12 months)

C$4.64 C$2.90 Fair Value C$2.90 Jun 2025 Jun 2026

12‑month range C$2.90 – C$4.64 · fair‑value band C$1.96 – C$4.36 · the C$4.09 price screens above the C$2.90 fair value. As of Jun 24, 2026.

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Analysis

Roots Corporation (ROOT) currently trades at C$4.09, while our model-based Fair Value estimate is C$2.90 — implying the stock looks roughly 29.1% overvalued today. We read business quality at 97/100 (high quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, Roots Corporation generated revenue of C$278M at a net margin of 1.7%. Revenue grew 4.2% year over year. It earns a return on equity of 2.9%. Net debt stands at C$78.1M. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) C$278M
Revenue growth (YoY) +4.2%
Net margin 1.7%
Return on equity 2.9%
Free cash flow C$25.4M FY2026
P/E ratio 38.1
More key figures
Operating margin 20.1%
EPS (TTM) C$0.1200
EPS growth (YoY) -3.0%
Net debt C$78.1M FY2026

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

Roots Corporation, together with its subsidiaries, designs, markets, and sells apparel, leather goods, footwear, and accessories under the Roots brand in Canada and internationally. The company operates through two segments: Direct-To-Consumer, and Partners and Other. The Direct-to-Consumer segment sells products through the company's corporate retail stores and ecommerce. The Partners and Other segment engages in the wholesale of Roots branded products to the company's international operating partners, licensees, and wholesale customers. Roots Corporation was founded in 1973 and is headquartered in Toronto, Canada.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Roots Corporation reported revenue of C$278M in FY2026 versus C$274M in FY2022, a compound +0.3%/yr. Reported net income was C$4.7M in FY2026, compounding −32.7%/yr from FY2022.

Revenue +0.3%/yr
FY22 C$274M
FY23 C$272M
FY24 C$263M
FY25 C$263M
FY26 C$278M
Net income −32.7%/yr
FY22 C$22.8M
FY23 C$6.7M
FY24 C$1.8M
FY25 −C$33.4M
FY26 C$4.7M

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Similar stocks

6 more Apparel Retail stocks, each showing price versus our Fair Value estimate (as of Jun 24, 2026).

Stock Price Fair Value vs Fair Value
Industria de Diseño Textil, S.A IDEXY $15.79 $12.07 -24%
The TJX Companies, Inc TJX C$29.33 C$16.18 -45%
Fast Retailing Co FRCOY $50.56 $19.25 -62%
Ross Stores, Inc ROST $236.97 $118.41 -50%
NEXT plc NXGPF $190.69 $209.27 +10%
Burlington Stores, Inc BURL $321.97 $128.91 -60%

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Frequently asked questions

Is Roots Corporation (ROOT) undervalued?
As of Jun 24, 2026, our model estimates a fair value of C$2.90 versus a price of C$4.09 — about −29% (overvalued). Model-based estimate, not financial advice.
What is the fair value of ROOT?
Our 21-model fair value for Roots Corporation is C$2.90 (as of Jun 24, 2026), built from audited fundamentals. The current price is C$4.09.
What is the quality score of ROOT?
Roots Corporation has a Quality Score of 97/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Roots Corporation (ROOT)?
Roots Corporation reported trailing-twelve-month revenue of about C$278M (latest available figure, as of Jun 24, 2026).
What is the net profit margin of ROOT?
The net profit margin of Roots Corporation is about 1.7%, meaning it keeps roughly 1.7% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.