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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
RootROOT +2.26%71 FCF Margin % is 13.82% as of Jun. 2026. GuruFocus rates ROOT with a GF Score™ of 71/100 and a GF Value™ of $88.57 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 504 Insurance companies, Root ranks better than 55.16% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Root's Free Cash Flow for the
three
months ended in Jun. 2026 was $54 Mil. Root's Revenue for the
three
months ended in Jun. 2026 was $389 Mil. Therefore, Root's FCF Margin % for the quarter that ended in Jun. 2026 was 13.82%.
The historical data trend for Root's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Property & Casualty subindustry, Root's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Root FCF Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Root's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Root's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Root (ROOT) has a FCF Margin % of 13.82% as of Jun. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Root and its competitors. According to the industry distribution chart, Root ranks #226 out of 504 companies in the Insurance industry, placing it in the top 44.8%.
Is Root's FCF Margin % too high?
Root's current FCF Margin % is 13.82%. The Insurance industry median FCF Margin % is 9.22. Root's value of 13.82% is 49.9% above this industry median. Based on the distribution chart, Root ranks #226 out of 504 companies in the Insurance industry, which is above the industry midpoint. Overall, Root has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Root's FCF Margin % compare to HRTG and BOW?
According to the Insurance industry distribution chart, Root ranks #226 out of 504 companies for FCF Margin %. This puts Root in the upper half of its industry. The industry median FCF Margin % is 9.22. Root's value of 13.82% is 49.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for an Insurance company?
The median FCF Margin % among Insurance companies is 9.22, based on 504 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Root's current FCF Margin % of 13.82% is 49.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Root and its competitors. For the Insurance industry, the median FCF Margin % is 9.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Root's current FCF Margin % is 13.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Root stock overvalued right now?
Based on GuruFocus' analysis, Root (ROOT) is currently considered Significantly Undervalued. The stock's GF Value™ is $88.57, compared to a current price of $52.67 — trading 40.5% below its estimated fair value. The current FCF Margin % is 13.82% and 49.9% above the Insurance industry median of 9.22. Root's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Root (ROOT), the current FCF Margin % is 13.82% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Root (ROOT) Overvalued in 2026?
Based on GuruFocus' analysis, Root stock appears to be undervalued.
The current stock price of $52.67 is trading 40.5% below its estimated GF Value™ of $88.57.
GuruFocus considers Root to be Significantly Undervalued.
Key valuation signals for ROOT:
FCF Margin %: 13.82%
GF Value™: $88.57 vs. price of $52.67 (40.5% below fair value)
Industry Position: 49.9% above the Insurance median (#226 of 504)
No single metric tells the full story. See the ROOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Root Inc develops and launches a direct-to-consumer personal automobile insurance and mobile technology company. It generates revenue from the sales of auto insurance policies within the United States.
71GF Score
Get the complete analysis for ROOT
FCF Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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