Root (ROOT) Moat Score: 3/10 (As of Jun. 26, 2026)


ROOT Root Inc ROOT
73 GF Score
Price $55.70
GF Value $88.02
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Root Moat Score?

Root ROOT +6.77% 73 Moat Score is 3 as of Jun. 26, 2026. GuruFocus rates ROOT with a GF Score™ of 73/100 and a GF Value™ of $88.02 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 596 Insurance companies, Root ranks better than 72.48% on this metric.

Root has the Moat Score of 3, which implies that the company might have No Moat - Very weak/transient advantages.

Root has No Moat: Root Inc operates in the competitive insurance industry with limited brand strength and customer loyalty. It lacks significant market share or proprietary technology, resulting in transient advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Root might have No Moat - Very weak/transient advantages.

Root  (NAS:ROOT) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Root Moat Score Related Terms

ROOT vs BOW, ASIC, TRUP: Moat Score Comparison

For the Insurance - Property & Casualty subindustry, Root's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Insurance Industry

For the Insurance industry and Financial Services sector, Root's Moat Score distribution charts can be found below:

* The bar in red indicates where Root's Moat Score falls into.


ROOT
73GF Score
Root Inc ROOT
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 3 mean?
Root (ROOT) has a Moat Score of 3 as of Jun. 26, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Root ranks #164 out of 596 companies in the Insurance industry, placing it in the top 27.5%.
Is Root's Moat Score too high?
Root's current Moat Score is 3. Based on the distribution chart, Root ranks #164 out of 596 companies in the Insurance industry, which is above the industry midpoint. Overall, Root has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Root's Moat Score compare to BOW and ASIC?
According to the Insurance industry distribution chart, Root ranks #164 out of 596 companies for Moat Score. This puts Root in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Insurance company?
A good Moat Score depends on the Insurance industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Root's current Moat Score is 3. 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 $88.02, compared to a current price of $55.70 — trading 36.7% below its estimated fair value. The current Moat Score is 3. Root's overall GF Score™ is 73/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Root (ROOT), the current Moat Score is 3 as of Jun. 26, 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 $55.70 is trading 36.7% below its estimated GF Value™ of $88.02. GuruFocus considers Root to be Significantly Undervalued.

Key valuation signals for ROOT:

  • Moat Score: 3
  • GF Value™: $88.02 vs. price of $55.70 (36.7% below fair value)
  • GF Score™: 73/100 with 3 warning signs

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 Business Description

Address 80 East Rich Street, Suite 500, Columbus, OH, USA, 43215
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.
73GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$55.70
Price
$88.02
GF Value