RootsRROTF 56 3-Year ROIIC % is 3.91 as of Jan. 2026. GuruFocus rates RROTF with a GF Score™ of 56/100 and a GF Value™ of $2.18 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,057 Retail - Cyclical companies, Roots ranks worse than 51.47% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Roots's 3-Year ROIIC % for the quarter that ended in Jan. 2026 was 3.91%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Roots's 3-Year ROIIC % or its related term are showing as below:
RROTF's 3-Year ROIIC % is ranked worse than 51.47% of 1057
companies
in the Retail - Cyclical industry
Industry Median: 4.82
vs RROTF: 3.91
Roots (OTCPK:RROTF) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Roots 3-Year ROIIC % Related Terms
Roots 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Roots's 3-Year ROIIC % 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.
RROTF vs TJX, ROST, BURL: 3-Year ROIIC % Comparison
For the Apparel Retail subindustry, Roots's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Roots's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Roots's 3-Year ROIIC % falls into.
Roots's 3-Year ROIIC % for the quarter that ended in Jan. 2026 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 7.4110715 (Jan. 2026) - 9.5375872 (Jan. 2023) )
/
( 190.867 (Jan. 2026) - 245.311 (Jan. 2023) )
=
-2.1265157
/
-54.444
=
3.91%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Roots (RROTF) has a 3-Year ROIIC % of 3.91 as of Jan. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Roots and its competitors. According to the industry distribution chart, Roots ranks #544 out of 1057 companies in the Retail - Cyclical industry, placing it in the top 51.5%.
Is Roots' 3-Year ROIIC % too high?
Roots' current 3-Year ROIIC % is 3.91. The Retail - Cyclical industry median 3-Year ROIIC % is 4.82. Roots' value of 3.91 is 18.9% below this industry median. Based on the distribution chart, Roots ranks #544 out of 1057 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Roots has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roots' 3-Year ROIIC % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Roots ranks #544 out of 1057 companies for 3-Year ROIIC %. This places Roots in the lower half of its industry. The industry median 3-Year ROIIC % is 4.82. Roots' value of 3.91 is 18.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Retail - Cyclical company?
The median 3-Year ROIIC % among Retail - Cyclical companies is 4.82, based on 1,057 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Roots's current 3-Year ROIIC % of 3.91 is 18.9% below 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Roots and its competitors. For the Retail - Cyclical industry, the median 3-Year ROIIC % is 4.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roots's current 3-Year ROIIC % is 3.91. 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 Modestly Overvalued. The stock's GF Value™ is $2.18, compared to a current price of $2.70 — trading 23.9% above its estimated fair value. The current 3-Year ROIIC % is 3.91 and 18.9% below the Retail - Cyclical industry median of 4.82. Roots' overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Roots (RROTF), the current 3-Year ROIIC % is 3.91 as of Jan. 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 $2.70 is trading 23.9% above its estimated GF Value™ of $2.18.
GuruFocus considers Roots to be Modestly Overvalued.
Key valuation signals for RROTF:
3-Year ROIIC %: 3.91
GF Value™: $2.18 vs. price of $2.70 (23.9% above fair value)
Industry Position: 18.9% below the Retail - Cyclical median (#544 of 1057)
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 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.
56GF Score
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