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ROOT.TO

STRONG BUYREMOVE

Roots Corporation · Consumer Cyclical · Canada · $110M · Avg Vol: $46K/d

90
StockRank
Q
57
V
49
M
75
P/E (TTM)
37.5x
ROE
2.9%
D/E
0.7x
Dividend %
AI CONVICTION THESIS

Roots is a Canadian apparel brand with low quality metrics (Q: 57) and no structural moat. It operates in a highly competitive, cyclical retail environment and lacks any thematic tailwinds.

COMPANY DESCRIPTION

Roots Corporation is a premium outdoor lifestyle brand that designs, markets, and sells apparel, leather goods, and accessories. The company's competitive moat is anchored by its iconic 50-year Canadian brand heritage, which commands high consumer loyalty and strong brand equity. It operates as a premium omni-channel retailer with a distinct, heritage-driven niche in the casual and activewear markets.

FINANCIAL SUMMARY (USD)

Year2023202420252026CAGR
Revenue192.0M185.4M185.6M196.0M0.7%
EPS0.110.04-0.590.08-9.1%
Shares41.5M40.3M40.5M39.2M-5.5%
Debt96.8M88.1M84.6M75.3M-8.0%
Equity132.7M134.7M112.6M111.5M-5.7%
Op CF20.7M27.3M22.8M22.7M3.2%
Inv CF-4.5M-3.6M-4.7M-4.6M
Fin CF-17.8M-26.4M-13.9M-21.9M
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PRICE (1Y)+3.8%
2.742.873.013.143.27May 14Jun 5Jun 25
SMA 50SMA 200
Close
$2.89
RSI (14)
33.8
52W High
$3.32
From 52W High
0.9%

SCORE BREAKDOWN

Quality
57
ROIC
5.8%37.5
ROE
2.9%26.4
GP/Assets
53.9%81.3
Op. Margin
20.1%90.9
FCF/Assets
9.2%81.4
Piotroski
888.4
Int. Cover
1.9x21.6
D/E Ratio
0.68x39.7
Current Ratio
1.30x38.0
Value
49
P/E (TTM)
37.5x18.8
EV/EBITDA
10.5x47.2
P/FCF
5.2x82.7
P/B
1.1x63.2
P/S
0.6x63.4
Div Yield
N/A
Momentum
75
52W High %
87%73.3
RS 6M
22%91.7
SMA 50/200
1.17x90.5
EPS Rev 4W
-1.4%17.7
EPS Rev 12W
N/A
EPS Improve
+200%84.3
Q Growth
N/A

FUNDAMENTALS

Market Cap
$110M
P/E (Forward)
12.5x
Gross Margin
61.3%

SECTOR PEERS

Closest peers in Consumer Cyclical, ranked by industry match, size, and score similarity. Cross-listings of ROOT.TO are excluded.

TickerCompanyMkt CapStockRankSignal
ROOT.TORoots Corporation(you)$110M90STRONG BUY
RET-A.VReitmans (Canada) Limited$76M69BUY
ATZ.TOAritzia Inc.$13.1B79BUY
LULU.MXlululemon athletica inc.$11.9B74BUY
GH.TOGamehost Inc.$199M94STRONG BUY
SXP.TOSupremex Inc.$65M96STRONG BUY
XTC.TOExco Technologies Limited$206M98STRONG BUY
IFA.TOiFabric Corp.$116M68BUY
TCL-A.TOTranscontinental Inc.$310M100STRONG BUY
TWC.TOTWC Enterprises Limited$448M93STRONG BUY

Peer medians: ROE 10.2% · P/E 14.6x · Gross margin 36.8%

Roots Corporation (ROOT.TO) — Stock Score Summary

Roots Corporation (ROOT.TO) has a MoatMap StockRank of 90/100 based on Quality (57/100), Value (49/100), and Momentum (75/100) factor scores. The current signal is STRONG BUY. Roots is a Canadian apparel brand with low quality metrics (Q: 57) and no structural moat. It operates in a highly competitive, cyclical retail environment and lacks any thematic tailwinds.

Roots Corporation is a premium outdoor lifestyle brand that designs, markets, and sells apparel, leather goods, and accessories. The company's competitive moat is anchored by its iconic 50-year Canadian brand heritage, which commands high consumer loyalty and strong brand equity. It operates as a premium omni-channel retailer with a distinct, heritage-driven niche in the casual and activewear markets.

Key Financial Metrics

Price$2.89
Market Cap$110M
P/E (TTM)37.50
P/E (Forward)12.50
Price/Book1.12
Return on Equity2.9%
Return on Invested Capital5.8%
Debt/Equity67.56
Gross Margin61.3%
Operating Margin20.1%
Revenue Growth4.2%
Free Cash Flow$21M

Roots Corporation operates in the Apparel Retail industry, part of the Consumer Cyclical sector (Canada).

Frequently Asked Questions

What is Roots Corporation’s (ROOT.TO) StockRank?
MoatMap’s StockRank for Roots Corporation (ROOT.TO) is 90/100, with a Strong Buy signal. It is a composite of Quality (57), Value (49), and Momentum (75) factor ranks across MoatMap’s 20,000+ stock universe.
Does Roots Corporation have an economic moat?
Roots Corporation (ROOT.TO) has a Quality factor score of 57/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Roots Corporation a buy, hold, or sell?
MoatMap’s current signal for Roots Corporation (ROOT.TO) is Strong Buy, based on a StockRank of 90/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Roots Corporation in?
Roots Corporation (ROOT.TO) operates in the Consumer Cyclical sector, specifically the Apparel Retail industry (Canada).