| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 60.70 | 580 |
iRobot Corporation (I8R.DE) is a pioneering leader in consumer robotics, best known for its Roomba robotic vacuum cleaners and Braava floor mopping robots. Headquartered in Bedford, Massachusetts, the company designs, builds, and sells innovative home automation products globally, including in the U.S., Europe, the Middle East, Africa, and Japan. iRobot’s product portfolio extends beyond floor care to include handheld vacuums, air purifiers under the Aeris brand, and educational robots like Root, which helps children learn coding. The company sells through major retailers, e-commerce platforms, and its own digital channels. Founded in 1990, iRobot has established itself as a key player in the smart home appliances sector, leveraging advanced robotics to enhance household efficiency. Despite recent financial challenges, iRobot remains a significant innovator in the consumer cyclical industry, competing in the high-growth smart home market.
iRobot presents a high-risk, high-reward investment opportunity. The company is a market leader in robotic vacuum cleaners, benefiting from strong brand recognition and technological innovation. However, it faces significant financial headwinds, including negative net income (-€145.5M in FY 2023) and operating cash flow (-€33.2M). Its high beta (1.188) indicates volatility, likely tied to competitive pressures and macroeconomic sensitivity. The lack of dividends and reliance on discretionary consumer spending further add to risks. Potential investors should weigh iRobot’s innovation pipeline against its profitability challenges and increasing competition in the smart home sector.
iRobot’s competitive advantage lies in its first-mover status in robotic vacuums, strong brand equity (Roomba), and a diversified product ecosystem (Braava, Aeris, Root). However, its market position is under threat from low-cost Asian manufacturers and tech giants expanding into smart home devices. The company’s R&D focus differentiates it, but operational inefficiencies and negative margins weaken its ability to compete on price. iRobot’s direct-to-consumer sales and retail partnerships provide distribution leverage, but competitors with deeper pockets (e.g., Amazon, Samsung) are eroding its moat. The recent termination of Amazon’s acquisition deal further exposes iRobot to standalone competitive risks. Its educational robotics segment (Root) is niche but faces stiff competition from LEGO and Sphero. To sustain growth, iRobot must accelerate innovation, improve cost structures, and potentially seek strategic alliances.