Roots (RROTF) ROCE %: -19.36% (As of Apr. 2026)

What is Roots ROCE %?

Roots RROTF 61 ROCE % is -19.36% as of Apr. 2026. GuruFocus rates RROTF with a GF Score™ of 61/100 and a GF Value™ of $2.22 (Significantly Overvalued). The stock has 4 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Roots's annualized ROCE % for the quarter that ended in Apr. 2026 was -19.36%.

Roots (OTCPK:RROTF) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Roots ROCE % Related Terms

Roots ROCE % Historical Data

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The historical data trend for Roots's ROCE % 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 ROCE % Chart

Roots Annual Data

Trend

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Jan25

Jan26

ROCE %

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12.17

5.45

3.88

-12.16

5.82

Roots Quarterly Data
	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24	Jan25	Apr25	Jul25	Oct25	Jan26	Apr26
ROCE %	Get a 7-Day Free Trial															-13.94	-6.50	8.42	35.22	-19.36

61GF Score

Roots Corp RROTF

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Roots ROCE % Calculation

Roots's annualized ROCE % for the fiscal year that ended in Jan. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2026 )		(A: Jan. 2025 )		(A: Jan. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2026 )		(A: Jan. 2025 )		(A: Jan. 2026 )
	=	10.565	/	( ( (228.673 - 46.244)	+	(229.253 - 48.62) )	/ 2 )
	=	10.565	/	( (182.429	+	180.633)	/ 2 )
	=	10.565	/	181.531
	=	5.82 %

Roots's ROCE % of for the quarter that ended in Apr. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Apr. 2026 )		(Q: Jan. 2026 )		(Q: Apr. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Apr. 2026 )		(Q: Jan. 2026 )		(Q: Apr. 2026 )
	=	-34.284	/	( ( (229.253 - 48.62)	+	(213.25 - 39.782) )	/ 2 )
	=	-34.284	/	( ( 180.633	+	173.468 )	/ 2 )
	=	-34.284	/	177.0505
	=	-19.36 %

(1) Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -19.36% mean?

Roots (RROTF) has a ROCE % of -19.36% as of Apr. 2026.

Is Roots' ROCE % too high?

Roots' current ROCE % is -19.36%. Overall, Roots has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Roots' ROCE % compare to TJX and ROST?

Roots' ROCE % of -19.36% can be compared against companies in the Retail - Cyclical industry. The industry median ROCE % is 7.58. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Retail - Cyclical company?

The median ROCE % among Retail - Cyclical companies is 7.58, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median ROCE % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roots's current ROCE % is -19.36%. 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 (RROTF) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.22, compared to a current price of $3.00 — trading 35.1% above its estimated fair value. The current ROCE % is -19.36%. Roots' overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Roots (RROTF), the current ROCE % is -19.36% 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 (RROTF) Overvalued in 2026?

Based on GuruFocus' analysis, Roots stock appears to be overvalued. The current stock price of $3.00 is trading 35.1% above its estimated GF Value™ of $2.22. GuruFocus considers Roots to be Significantly Overvalued.

Key valuation signals for RROTF:

ROCE %: -19.36%
GF Value™: $2.22 vs. price of $3.00 (35.1% above fair value)
GF Score™: 61/100 with 4 warning signs

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

Roots Business Description

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies TSXV:RET.A XMAD:ITX TJX TSE:9983 ROST BURL LSE:NXT BOM:500251 LULU TSX:ATZ GAP URBN TSX:GRGD LSE:JD.BOOT VSCO TSE:8227 TSE:2670 TSE:7564 ANF

Other Exchanges 4RO:Germany ROOT:Canada

Address 1400 Castlefield Avenue, Toronto, ON, CAN, M6B 4C4

Website https://www.roots.com

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.

61GF Score

Get the complete analysis for RROTF

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

$3.00

Price

$2.22

GF Value

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