ValueInvestingEasily
Oct 23, 6:33 PM
$ROOT
12 days until the TTM PE ratio shrinks from 15 down to 8.
The math: 65 million last 9 months earnings, Q3 25 had 20 million in warrant expense compensation and higher marketing expenses. Both of these will be lower likely leading to a Q1-2 esque quarter. Going from -5 to +30 million will leave net income for TTM at 100 million. Root shares outstanding are currently 15.3 million. With buybacks at
$50 a share average, root could have bought 1.1 million shares this quarter. 14.4 million shares would remain if SBC added 200,000 for the quarter (likely far lower).
100/14.4 =6.94 EPS TTM
7x8=56
Their market cap adjusting for buybacks is 763 million. 55 million in buyback activity would leave them right at 300 million cash on hand. Almost half of the market cap in net assets is far higher than the other large insurers
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