Summary
- iRobot has depreciated over 50% in the last 6 months.
- This can be attributed to slowing growth and political challenges.
- At the current price, we believe this offers a buying opportunity.
- iRobot is a healthy company with a good track record in a growing industry.
Thesis
I believe shares of iRobot Corporation (IRBT) have been overly punished by the market. Therefore, I see this as a perfect entry point to invest in a money-making enterprise in a promising market.
In the article, we will validate this thesis by assessing the company's profitability and growth potential based on its financials.
With that in mind, I think iRobot could recover its previous share price of around $100 within the next 2 years.
Company Overview
iRobot is a company that designs and produces robots for consumers. Some of their main products include robot vacuums (Roombas), mops, and lawnmowers.
Founded in 1990 and located in Massachusetts, the company has enjoyed significant growth and high margins thanks to increasing demand and improving technology.
In 2019, the company has faced increasing challenges, making the share price fall by almost 50%.
However, the latest Q3 report is encouraging and we believe the company is overall solid and profitable. Having said this, it will be important to keep an eye out for any new developments 2019 brings in terms of political challenges
iRobot is a solid company
While the market has punished this stock in the past year, let me begin by explaining why I think iRobot is a solid company, while later addressing some of the potential problems and threats the business is facing/may face
