Roots (STU:4RO) Return-on-Tangible-Asset: -24.12% (As of Apr. 2026)

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Director of Data and Quant Analytics at GuruFocus
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STU:4RO Roots Corp STU:4RO
50 GF Score
Price €2.28
GF Value €1.89
Valuation Modestly Overvalued
! 3 Warning Signs
View Full Analysis

What is Roots Return-on-Tangible-Asset?

Roots STU:4RO -5.79% 50 Return-on-Tangible-Asset is -24.12% as of Apr. 2026. GuruFocus rates STU:4RO with a GF Score™ of 50/100 and a GF Value™ of €1.89 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,130 Retail - Cyclical companies, Roots ranks worse than 60.71% on this metric.

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Roots's annualized Net Income for the quarter that ended in Apr. 2026 was €-25.0 Mil. Roots's average total tangible assets for the quarter that ended in Apr. 2026 was €103.7 Mil. Therefore, Roots's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 was -24.12%.

The historical rank and industry rank for Roots's Return-on-Tangible-Asset or its related term are showing as below:

STU:4RO' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -33.58   Med: 4.73   Max: 19.13
Current: 1.51

During the past 11 years, Roots's highest Return-on-Tangible-Asset was 19.13%. The lowest was -33.58%. And the median was 4.73%.

STU:4RO's Return-on-Tangible-Asset is ranked worse than
60.71% of 1130 companies
in the Retail - Cyclical industry
Industry Median: 2.93 vs STU:4RO: 1.51

Roots  (STU:4RO) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Roots Return-on-Tangible-Asset Related Terms


Roots Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Roots's Return-on-Tangible-Asset 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.

Roots Return-on-Tangible-Asset Chart

Roots Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.18 3.37 0.97 -18.03 2.43

Roots Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -17.70 -10.94 5.29 32.85 -24.12

STU:4RO vs TJX, ROST, BURL: Return-on-Tangible-Asset Comparison

For the Apparel Retail subindustry, Roots's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.


Roots Return-on-Tangible-Asset vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Roots's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Roots's Return-on-Tangible-Asset falls into.


STU:4RO
50GF Score
Roots Corp STU:4RO
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Roots Return-on-Tangible-Asset Calculation

Roots's annualized Return-on-Tangible-Asset for the fiscal year that ended in Jan. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Jan. 2026 )  (A: Jan. 2025 )(A: Jan. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Jan. 2026 )  (A: Jan. 2025 )(A: Jan. 2026 )
=2.884/( (127.245+110.218)/ 2 )
=2.884/118.7315
=2.43 %

Roots's annualized Return-on-Tangible-Asset for the quarter that ended in Apr. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Apr. 2026 )  (Q: Jan. 2026 )(Q: Apr. 2026 )
=-25.016/( (110.218+97.188)/ 2 )
=-25.016/103.703
=-24.12 %

* 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.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Apr. 2026) net income data.

What does a Return-on-Tangible-Asset of -24.12% mean?
Roots (STU:4RO) has a Return-on-Tangible-Asset of -24.12% as of Apr. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Roots and its competitors. According to the industry distribution chart, Roots ranks #686 out of 1130 companies in the Retail - Cyclical industry, placing it in the top 60.7%.
Is Roots' Return-on-Tangible-Asset too high?
Roots' current Return-on-Tangible-Asset is -24.12%. Based on the distribution chart, Roots ranks #686 out of 1130 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Roots has a GF Score™ of 50/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roots' Return-on-Tangible-Asset compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Roots ranks #686 out of 1130 companies for Return-on-Tangible-Asset. This places Roots in the lower half of its industry. The industry median Return-on-Tangible-Asset is 2.93. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Retail - Cyclical company?
The median Return-on-Tangible-Asset among Retail - Cyclical companies is 2.93, based on 1,130 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Roots and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Asset is 2.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roots's current Return-on-Tangible-Asset is -24.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roots stock overvalued right now?
Based on GuruFocus' analysis, Roots (STU:4RO) is currently considered Modestly Overvalued. The stock's GF Value™ is €1.89, compared to a current price of €2.28 — trading 20.6% above its estimated fair value. The current Return-on-Tangible-Asset is -24.12%. Roots' overall GF Score™ is 50/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Roots (STU:4RO), the current Return-on-Tangible-Asset is -24.12% as of Apr. 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 Roots (STU:4RO) Overvalued in 2026?

Based on GuruFocus' analysis, Roots stock appears to be overvalued. The current stock price of €2.28 is trading 20.6% above its estimated GF Value™ of €1.89. GuruFocus considers Roots to be Modestly Overvalued.

Key valuation signals for STU:4RO:

  • Return-on-Tangible-Asset: -24.12%
  • GF Value™: €1.89 vs. price of €2.28 (20.6% above fair value)
  • GF Score™: 50/100 with 3 warning signs

No single metric tells the full story. See the STU:4RO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Roots Business Description

Other Exchanges RROTF:USAROOT:Canada
Address 1400 Castlefield Avenue, Toronto, ON, CAN, M6B 4C4
Roots Corp provides a portfolio of apparel, leather goods, accessories, and footwear for men, women, and children under the Roots brand. Its merchandise includes genuine leather, such as jackets, bags, kids & baby clothing, and leather, linens, towels, and accessories. The company operates through two segments: Direct-To-Consumer (DTC), which accounts for the majority of revenue, and Partners and Other. The DTC segment sells products through the company's corporate retail stores and e-commerce website, and the Partners and Other segment engages in the wholesale of Roots-branded products to the company's international operating partners, and it earns royalties on the retail sales of Roots-branded products.
50GF Score

Get the complete analysis for STU:4RO

Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€2.28
Price
€1.89
GF Value