Roots Corp
TSX:ROOT
Intrinsic Value
Roots Corp. engages in the provision of leather goods, apparel, and accessories. [ Read More ]
The intrinsic value of one ROOT stock under the Base Case scenario is 8.82 CAD. Compared to the current market price of 2.27 CAD, Roots Corp is Undervalued by 74%.
Valuation Backtest
Roots Corp
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Fundamental Analysis
Activewear Strong but Overall Sales Dip 9%
2024-Q3 Earnings Call
In Q3, sales fell 9% to $63.5 million, with an 8.2% decrease in direct-to-consumer (DTC) sales. Full price DTC sales, however, grew 3%, amid lower off-price sales and promotional discipline. Activewear outperformed significantly, surging over 50%. New collaborations, like the Asian-focused CLOT line, are attracting customers globally, contributing to a positive performance. U.S. online sales saw double-digit growth due to enhanced operational capabilities, such as Canadian stores directly shipping to U.S. customers. Gross profit margin improved to 58.4%, driven by lower freight costs and a higher mix of full price sales. Net income dropped to $519,000 from $2.2 million year-over-year, reflecting a cautious stance amidst economic uncertainty.
Balance Sheet Decomposition
Roots Corp
Current Assets | 78.9m |
Cash & Short-Term Investments | 4.6m |
Receivables | 7.1m |
Other Current Assets | 67.2m |
Non-Current Assets | 292.5m |
PP&E | 99.8m |
Intangibles | 192.4m |
Other Non-Current Assets | 300k |
Current Liabilities | 62.3m |
Accounts Payable | 30.6m |
Other Current Liabilities | 31.7m |
Non-Current Liabilities | 132.5m |
Long-Term Debt | 112.1m |
Other Non-Current Liabilities | 20.4m |
Earnings Waterfall
Roots Corp
Revenue
|
265.9m
CAD
|
Cost of Revenue
|
-113.9m
CAD
|
Gross Profit
|
152m
CAD
|
Operating Expenses
|
-142m
CAD
|
Operating Income
|
10m
CAD
|
Other Expenses
|
-9.8m
CAD
|
Net Income
|
200k
CAD
|
Free Cash Flow Analysis
Roots Corp
What is Free Cash Flow?
ROOT Profitability Score
Profitability Due Diligence
Roots Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Score
Roots Corp's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
ROOT Solvency Score
Solvency Due Diligence
Roots Corp's solvency score is 33/100. The higher the solvency score, the more solvent the company is.
Score
Roots Corp's solvency score is 33/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ROOT Price Targets Summary
Roots Corp
According to Wall Street analysts, the average 1-year price target for ROOT is 3.25 CAD .
Shareholder Return
ROOT Price
Roots Corp
Average Annual Return | -3.05% |
Standard Deviation of Annual Returns | 36.99% |
Max Drawdown | -87% |
Market Capitalization | 91.5m CAD |
Shares Outstanding | 40 250 213 |
Percentage of Shares Shorted | 1.4% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Roots Corp. engages in the provision of leather goods, apparel, and accessories. The company is headquartered in Toronto, Ontario and currently employs 2,044 full-time employees. The company went IPO on 2017-10-24. The firm offers a range of products, including women’s and men’s apparel, leather goods, footwear, accessories, and kids, toddler and baby apparel. The Company’s segments include Direct-to-Consumer and Partners and Other segment. The Direct-to-Consumer segment comprises sales through corporate retail stores and electronic commerce. The Partners and Other segment consist primarily of the wholesale of Roots-branded products to its international operating partner and the royalties earned on the retail sales of Roots-branded products by its partner. The firm operates approximately 100 retail stores across Canada, two in the United States and ship to more than 60 countries worldwide through its roots.com, the Company's electronic Commerce platform. The company also has approximately 100 partner operated stores and sell its products through third-party retail sites in Asia.
Contact
IPO
Employees
Officers
The intrinsic value of one ROOT stock under the Base Case scenario is 8.82 CAD.
Compared to the current market price of 2.27 CAD, Roots Corp is Undervalued by 74%.