Fundamental Analysis

iRobot, the leading global consumer robot company, designs and builds robots that empower people to do more both inside and outside of the home.

iRobot’s products, including the award-winning Roomba® Vacuuming Robot and the Braava® family of mopping robots, have been welcomed into millions of homes around the world and are hard at work every day helping people to get more done.

unnamed (1)

Reasons to buy – IROBOT

High level decisions on buy or sell for a stock should be driven by

1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.

    • Here we see IROBOT makes a margin of 11.7% on Operating Level and about 9.4% on Net level. This means that out of $1 that it makes $0.094 is being pocketed as profits.

2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.

    • Here we see net revenue growth of 29% in the revenue and the net profit figures grew by 25%.

3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.

    • Here we see IROBOT makes a Return on Assets of 13% and Return of Equity of 16% which is pretty good.

Given the amount of time you or me spend cleaning and sweeping the house and with kids and both parents working the luxury of having a robot cleaning your house when you are out of your house will soon become a household entity. Please buy the stock before you get the iRobot.

GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.

All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by IROBOT to the SEC. All the data on the above analysis can be found at the link below

Balance Sheet

 unnamed (2)

Income Statement

 unnamed (3)

Leave a Reply