iRobot Stock

iRobot is a name under discussion among the investors and traders. This article will reveal all the important information if you want to buy iRobot stock.
December 29, 2020

Is It Good to Buy iRobot Stock? Know the Facts

iRobot- It might be something new for you, but the world has known it for three decades. Most of the consumer robots you see and make use of are a product of this company. If you want to trade stocks of the company let me briefly introduce what iRobot is.



This is a corporation
that is well known for its consumer technology and robots. iRobot corporation
or NASDAQ – IRBT
was founded in 1990 in the
United States. The company has its headquarters in Bedford, MA.
It
is one of the leading companies for the manufacture of robots worldwide. iRobot
excels not only in the domestic field, but it is a leader in the commercial
arena also.

 

It should be mentioned here that the corporation works for manufacturing and
producing mobile robots. The most renowned products by iRobot corporation are
Mirra, Braava, Looj, and Roomba. The company holds the copyrights to the
technology used in these robots. They are engineered to deal with domestic
chores like floor scrubbing, vacuuming and mopping, gutter cleaning, and pool
cleaning.

Various
distribution channels are working to sell these robots, such as online
websites, online stores, national retailers, and other value added distributors
and authorized resellers. At the beginning of 2019, in the month of January,
iRobot entered the lawn care market in addition to mopping, vacuuming, and
cleaning products. It made it possible by the invention of a robot mower named
Terra. The robot features revolutionizing technologies like state-of-the-art
mapping and navigation. It provides high-quality mowing and has easy
installation capabilities.

Now that you have a
clear picture of iRobot and what it is famous for, let’s move on to our primary
concern: Is it good to buy iRobot stock?

 

iRobot
Stock – What is its Market Value, and Is it Beneficial to Invest in?

To
have a better understanding, let’s review the company’s progress in business
and market from the beginning. In the year 2016, iRobot corporation divested
its business of defense and security. After this decision, most of its revenues
were being generated from the company’s consumer business.

iRobot
was further strengthened in the year 2017 when it got acquisitions to the Sales
on Demand Corporation that is a Japan-based company, and Robopolis SAS, which
is a Europe based corporation. These two powerful distributors helped the
company further expand its business in growing markets like Germany, Spain, Austria,
Japan, Portugal, Netherlands, and Belgium. The year 2019 is marked by the
generation of $1.21 billion for the iRobot company.

 

Current
Position of iRobot Stocks in the Market

After
the invention of Roomba, which is the predominant source of generating revenues
for the company, followed by Braava, the company generated remarkable revenue.
But it is experiencing slow growth as the last few years came out to be much
challenging for making place in the market. And iRobot is facing a decline
every year.

Let’s
understand why the company is facing decline and the chances of future growth.

What
Is the Reason Behind the Decline in The Company’s Revenue?

Rising
competition is the main reason why the company has been generating low revenues
in the last few years. Ecovacs
Robotics, SharkNinja, and Neato Robotics started sharing market revenue with
iRobot. As a result, the company has to respond with price cuts. CEO Colin
Angle said that he is expecting the competition will further affect profits and
revenue generation in the coming years.

The other reason that weighed on iRobot is
dealing with the payment of import duties on the products manufactured in China
and imported by the company. It caused the company’s tariff to reach up to 25%,
which was previously 10%. The iRobot stock has recently experienced a fall of
$0.18 on the earning on each of its shares. It brought down the value of the
earning on a single share to $0.70 from $0.88.

Though the company’s stock price hit as high
as $132.30 per share in April 2019, after experiencing a constant decline, this
price has fallen down to $32.79. These prices reflect a drop of around 70%.

Covid-19 has also played its role in weighing
down the company’s revenues.

What Are the Chances of Growth in the Near
Future?

Investors are optimistic that this decline is
temporary, and a rebound is expected in 2021. Though the analysts estimate a
doubling in the earnings in the coming five years, most do not recommend iRobot
as a good stock to buy until the situation gets better for the company.

 

 

Sign Up Today!

Any questions?

What's going on?