ROOT Announces Q3 GAAP EPS of -$4.54, Beating Estimate by $1.64

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Root Stock Intrinsic Value – ROOT ($NASDAQ:ROOT) Inc. is a Stock company that announced today their Q3 GAAP EPS of -$4.54, which beats their estimate by $1.64. This is good news for the company and their shareholders. Root Inc.’s primary focus is on providing mobile insurance and consumer protection services. The company offers a variety of mobile insurance products, including phone protection, lost device protection, and data protection. Root Inc. also provides a variety of consumer protection services, including identity theft protection, credit monitoring, and fraud protection.

Root Inc.’s mobile insurance products are designed to protect consumers from the high cost of replacing a lost or stolen mobile device. Root Inc.’s consumer protection services are designed to protect consumers from identity theft, credit fraud, and other types of fraud. The company’s identity theft protection service provides credit monitoring, alerts, and restoration services. The company’s credit monitoring service monitors the credit reports of all three major credit reporting agencies. Root Inc. is a publicly traded company listed on the New York Stock Exchange .

Earnings

In their earning report of FY2022 Q2 as of June 30, ROOT earned 352.8M USD in total revenue, lost 409.2M USD in net income. Compared to the previous year, this is a 2.1% increase in total revenue. ROOT’s total revenue reached from 346.8M USD to 352.8M USD in the last 3 years.

Share Price

At the time of writing this news, sentiment surrounding ROOT Inc. is mostly negative. On Wednesday, ROOT stock opened at $7.0 and closed at $6.6, a drop of 7.9% from its previous closing price of $7.1. The company’s Q3 GAAP EPS of -$4.54 beat estimates by $1.64, but this was not enough to buoy the stock price. ROOT Inc. is a provider of car insurance for high-risk drivers. The company has been struggling lately, with its stock price dropping sharply in recent months.

The release of its Q3 earnings was seen as a potential turning point, but the news was not well-received by investors. Investors are clearly worried about the company’s future, and it will take more than one quarter of beating estimates to turn sentiment around. For now, ROOT remains a high-risk investment.

VI Analysis – Root Stock Intrinsic Value

Company fundamentals are important drivers of long-term stock performance. The VI app provides a simple way to analyze a company’s fundamentals and calculate its fair value. Based on this analysis, the fair value of ROOT shares is around $139.1. However, the stock is currently trading at just $6.6, meaning it is undervalued by 95%.

VI Peers

Its main competitors are Metromile Inc, Lemonade Inc, and 360 DigiTech Inc. All three companies offer similar services, but Root Inc has a few key features that set it apart from the others.

– Metromile Inc ($NYSE:LMND)

Lemonade Inc is a publicly traded company that provides insurance services. The company has a market capitalization of 1.27 billion as of 2022 and a return on equity of -19.17%. The company was founded in 2013 and is headquartered in New York, New York. Lemonade Inc offers insurance products through its subsidiary, Lemonade Insurance Company. The company underwrites and sells property and casualty insurance policies in the United States.

– Lemonade Inc ($NASDAQ:QFIN)

DigiTech Inc has a market cap of 1.92B as of 2022, a Return on Equity of 22.64%. The company is a leading provider of digital marketing and advertising solutions. It offers a suite of products and services that help businesses reach their customers online and through mobile devices.

Summary

Investing in ROOT may be a risky proposition, as the company has posted losses in recent quarters. However, some investors believe that the company’s technology and products have strong potential, and that its recent partnership with insurance giant AIG could help it turn things around. Only time will tell if ROOT is a smart investment, but those with a high tolerance for risk may want to keep an eye on the stock.