iRobot Stock Analysis, Valuation (NASDAQ:IRBT)

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$89.28 $1.5 (1.71%) IRBT stock closing price Aug 15, 2018 (Closing)

Investors can watch the Amigobulls iRobot stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for IRBT stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

iRobot Corporation Stock Rating 2.9/5

Amigobulls IRBT stock analysis uses latest quarter 2018 Q2 financial data like iRobot revenue growth, profit margins and cash flows. We compare iRobot valuation with its sector peers to gauge relative attractiveness of IRBT stock. iRobot stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy IRBT stock?

  • iRobot's revenue growth came in at 23.6% in 2018-06.
  • LTM Net margins were good at 5.9% for iRobot.
  • iRobot generates a high return on invested capital of 20.5.

Should you sell IRBT stock?

  • Operating cash flows are negative.
  • Trading at a PE ratio of 40.5, IRBT stock is overvalued in comparison to sector average multiple of 20.1.
  • The company is trading at a price to sales multiple of 2.5, which is overvalued in comparison to the Industrial Products sector average multiple of 1.4.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -4.

Comments on this video and iRobot stock

Amigobulls iRobot stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

iRobot revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.