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Roots Corporation (TSE:ROOT)
TSX:ROOT
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Roots Corporation (ROOT) Price & Analysis

78 Followers

ROOT Stock Chart & Stats

C$3.91
-C$0.01(-0.47%)
At close: 4:00 PM EST
C$3.91
-C$0.01(-0.47%)

Bulls Say, Bears Say

Bulls Say
Strong Revenue & Cash GenerationSubstantial TTM revenue growth (~93%) alongside operating cash flow of ~$33M and free cash flow of ~$26.8M provides durable internal funding for inventory, tech, and buybacks. Strong cash generation enhances flexibility to invest in DTC, service debt, and withstand demand volatility.
High Gross Margins Via DTC MixRecord gross margin (61.3%) and elevated DTC gross margin (63.4%) reflect a higher-margin channel mix, tighter assortments and pricing discipline. Sustained margin expansion driven by DTC supports profitability resilience and funds reinvestment even if wholesale channels fluctuate.
Supply Chain & AI Structural InvestmentsA 10‑year distribution partnership plus AI-driven allocation, personalization and automation materially upgrades fulfillment and omnichannel capability. These structural investments should reduce stockouts, lower fulfillment costs, and raise sales productivity over multiple quarters.
Bears Say
Thin, Volatile ProfitabilityNet margin near 1.7% and modest EBIT margins, coupled with a prior-year large loss, indicate earnings are thin and historically volatile. Low, variable margins leave limited buffer for cost shocks, constrain reinvestment capacity, and increase sensitivity to macro or input-cost swings.
Inventory Build Amid StockoutsInventory increased ~9.9% to $45.1M even as the company reported Q4 stockouts on key SKUs. This coexistence signals allocation and supply chain frictions that tie up working capital, raise markdown risk, and can cap sales growth until replenishment and allocation efficiencies improve.
Rising SG&A And Duty/freight ExposureSG&A growth (including incremental marketing and variable selling costs) plus new U.S. duties and freight/FX volatility create structural cost pressure. Persistent higher operating expenses and trade-cost exposure can erode margin sustainability unless offset by pricing or productivity gains.

Roots Corporation News

ROOT FAQ

What was Roots Corporation’s price range in the past 12 months?
Roots Corporation lowest stock price was C$2.81 and its highest was C$4.70 in the past 12 months.
    What is Roots Corporation’s market cap?
    Roots Corporation’s market cap is C$141.89M.
      When is Roots Corporation’s upcoming earnings report date?
      Roots Corporation’s upcoming earnings report date is Sep 15, 2026 which is in 65 days.
        How were Roots Corporation’s earnings last quarter?
        Roots Corporation released its earnings results on Jun 12, 2026. The company reported -C$0.19 earnings per share for the quarter, missing the consensus estimate of -C$0.17 by -C$0.02.
          Is Roots Corporation overvalued?
          According to Wall Street analysts Roots Corporation’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Roots Corporation pay dividends?
            Roots Corporation does not currently pay dividends.
            What is Roots Corporation’s EPS estimate?
            Roots Corporation’s EPS estimate is -0.08.
              How many shares outstanding does Roots Corporation have?
              Roots Corporation has 39,196,163 shares outstanding.
                What happened to Roots Corporation’s price movement after its last earnings report?
                Roots Corporation reported an EPS of -C$0.19 in its last earnings report, missing expectations of -C$0.17. Following the earnings report the stock price went down -3.017%.
                  Which hedge fund is a major shareholder of Roots Corporation?
                  Currently, no hedge funds are holding shares in TSE:ROOT
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Roots Corporation Stock Smart Score

                    5
                    Neutral
                    1
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                    3
                    4
                    5
                    6
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                    9
                    10

                    Company Description

                    Roots Corporation

                    Roots Corporation, through its associated entities, specializes in the development, promotion, and retail of apparel, leather products, footwear, and various accessories. These offerings are available under the distinctive Roots brand, serving customers both domestically in Canada and worldwide. The company's business model is bifurcated into two primary divisions: Direct-To-Consumer and Partners and Other. The Direct-To-Consumer segment facilitates sales directly to customers via its own physical retail outlets and digital e-commerce channels. Conversely, the Partners and Other segment manages the wholesale supply of Roots-branded items to its international operational partners, licensed distributors, and other bulk purchasers. As of January 29, 2022, Roots Corporation oversaw 107 corporate-owned stores in Canada, two in the United States, and roughly 100 partner-operated locations throughout Asia, along with a dedicated e-commerce platform for Taiwan at www.roots.com.tw. Established in 1973, the company's corporate headquarters are situated in Toronto, Canada.

                    Roots Corporation (ROOT) Earnings & Revenues

                    ROOT Stock 12 Month Forecast

                    Average Price Target

                    C$4.50
                    ▲(15.09% Upside)
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