Added to YB: 2026-04-08
Pitch date: 2026-04-06
ROOT.TO [neutral]
Roots Corporation
-0.75%
current return
Author Info
Racoon Capital Notebook is a value and special-situations focused investor. Sign up for the newsletter.
Company Info
Roots Corporation, together with its subsidiaries, designs, markets, and sells apparel, leather goods, footwear, and accessories under the Roots brand in Canada and internationally.
Market Cap
CAD 154.5M
Pitch Price
CAD 4.01
Price Target
5.30 (+34%)
Dividend
N/A
EV/EBITDA
6.24
P/E
-4.87
EV/Sales
0.99
Sector
Specialty Retail
Category
special_situation
Q1-2026 Portfolio Update : +5% - Roots Corporation
ROOT.TO (holding update): Strategic review announced March 3, 2026 as Searchlight Capital (~52% stake) seeks exit. Trading 6.5x TTM adj EBITDA ($23.5M) vs peer txns at 7-10x (Canada Goose PE bid 8x). Implied price $4.30-$4.60 (7.5-8x exit multiple) = 22-32% upside, ~30% IRR over 9-12mo. Risks: no deal or low-ball bid reverts to $2.50-3.00. Mitigants: <0.4x leverage, turnaround (positive comps since Q3'24, 60% GM), NCIB, 50yr brand w/ 100 stores.
Read full article (1 min)