IRBT still has value (II)As I mentioned in my other post, IRBT can go as low as 2$ and here it is. I added a big chunck at this price and will also add if it goes to 1.5$. Still, I think the upside is coming for this stock
IRBT trade ideas
Is iRobot's Bankruptcy the End or a New Start?iRobot, the renowned maker of the Roomba robotic vacuum cleaners, now finds itself in a precarious financial situation marked by significant debt and dwindling liquidity. Once a symbol of innovation, the company has been battling mounting losses and a challenging cash crunch, raising serious concerns about its ability to continue as a going concern.
The collapse of a high-profile acquisition deal with Amazon—derailed by European antitrust authorities—has compounded iRobot’s woes. The termination of this deal led to a dramatic plunge in share value and market capitalization and intensified investor skepticism, leaving the company with a heavier debt load and forcing it to consider strategic alternatives such as refinancing or selling assets.
Facing regulatory pressures, shifting market dynamics, and the human cost of necessary layoffs, iRobot’s future now hangs in the balance. This unfolding crisis invites investors and industry observers to reflect deeply on broader questions: Could a strategic overhaul pave the way for recovery, or does this signal the end of an era for the iconic brand?
The heavy stoneComprehensive Financial Analysis and Stock Price Forecast of iRobot Corporation
iRobot Corporation, the globally recognized consumer robotics company, is currently undergoing a significant transformation period. The company's financial performance, market position, and future prospects deserve considerable attention from investors. Despite challenges in recent years, the company has initiated strategic initiatives to restore long-term growth and profitability. This analysis provides a comprehensive overview of iRobot's current financial situation, corporate strategy, and future stock price prospects.
Current Financial Situation and Performance
iRobot Corporation's financial performance has faced significant challenges over the past year, although signs of improvement are appearing in certain areas. According to the company's 10-K report for the 2024 fiscal year, total revenue decreased to $681.8 million, representing a 23.4% decline compared to fiscal year 2023. This significant revenue decline is primarily attributed to decreasing orders from retailers and distributors, as well as aggressive market competition.
Gross profit was $142.4 million, representing a gross margin of 20.9%, compared to 22.0% in 2023. The decline in gross margin was primarily negatively affected by increased promotional activities and inventory adjustments. However, it's important to note that the company's operating loss improved to $102.95 million from $264.08 million in 2023, thanks to cost reduction and restructuring efforts.
Net loss also improved to $145.52 million from $304.71 million in 2023. GAAP net loss per share was $4.92, also showing improvement compared to the $11.01 loss in 2023. These improvements indicate that the company's restructuring and cost management initiatives are beginning to yield results, although we're still talking about loss-making operations.
Fourth Quarter 2024 Results
iRobot's preliminary financial results for the fourth quarter of fiscal 2024 provide further insight into the company's current situation. In the fourth quarter, they expect revenue of approximately $171 million, with a GAAP operating loss of approximately $59 million and a non-GAAP operating loss of approximately $47 million. The company's cash and cash equivalents are expected to total approximately $134 million at the end of the fiscal year, exceeding the company's internal forecasts and indicating improving operating cash flow.
However, the preliminary results were negatively impacted by increased seasonal promotional expenses and a one-time cost of $8 million for writing off excess inventory and losses on procurement obligations. These factors negatively affected the gross margin and operating loss in the last quarter.
Corporate Strategy and Future Directions
iRobot's management emphasizes that the company has implemented fundamental changes in its innovation, development, and manufacturing processes, which play a central role in its strategy to improve financial performance and increase long-term shareholder value. Gary Cohen, iRobot's CEO, explained that these results are part of the transition to a new product development approach with contract manufacturers.
The company exceeded its restructuring targets for operating costs in 2024 while investing in areas expected to generate growth. This balanced approach shows management's commitment to reducing costs while not neglecting the creation of foundations for future growth.
Looking ahead, iRobot expects a return to annual revenue growth in 2025, facilitated by new product launches. The company forecasts that the second half of 2025 will be stronger than the first as market acceptance of new products increases. Due to reduced product costs and shorter development periods, iRobot expects better margins and improving profitability throughout 2025.
Financial Forecasts and Indicators
iRobot's financial forecasts provide further insight into the company's future prospects. EBITDA is expected to increase from $159.9 million (2024) to $178.2 million in 2025, representing an 11.45% growth. Similarly, EBIT is forecasted to increase from $86.62 million (2024) to $146.3 million in 2025, a remarkable 68.93% growth.
In terms of financial indicators, the EBITDA margin improves from -9.64% (2024) to 1.77% in 2025, indicating a positive turn in the company's operational efficiency. The EBIT margin also improves from -11.89% (2024) to -2.87% in 2025, although it remains in negative territory. The net margin similarly improves from -15.36% (2024) to -5.24% in 2025.
Earnings per share (EPS) is forecast to improve from -$4.21 (2024) to -$1.823 in 2025, a 56.69% improvement, although still reflecting loss-making operations. Return on equity (ROE) improves from -74.5% (2024) to -20% in 2025, a significant advancement but still a negative value.
Valuation Metrics
In terms of valuation metrics, iRobot's P/E ratio is forecasted to be -1.54x in 2024 and -3.55x in 2025. The negative P/E ratio reflects the loss-making operations. The P/B (price-to-book value) ratio is expected to be 2.01x in 2024 and 2.45x in 2025. The EV/Sales (enterprise value-to-sales) ratio is forecasted to be 0.27x in both 2024 and 2025.
Stock Price Analysis and Forecasts
iRobot's stock price has shown significant volatility in recent periods. According to the latest data, the stock price is hovering around $6.65, showing a 34.02% decrease over the past year. The daily trading range has been between $6.55 and $7.11.
2025 Stock Price Forecasts
According to analyst forecasts, iRobot's stock price has significant growth potential for 2025. Expectations suggest an average stock price of $18.51 in 2025, representing a 178.28% increase from the current price of $6.65. The forecasts show a wide range, with the lowest estimate at $1.734 and the highest at $35.28.
Monthly breakdown forecasts indicate significant volatility expected in 2025. In April 2025, the average price could be $31.42, which would represent a 372.48% increase from the current price. However, the September forecast shows only $4.8758, which would represent a 26.68% decrease. This fluctuation reflects uncertainties related to the company's transformation process and the wide range of market expectations.
Long-term Stock Price Outlook
Long-term forecasts are even more optimistic about iRobot stock prospects. Analyses suggest the stock price could reach $79.09 by 2030, $32.23 by 2040, and as high as $149.88 by 2050. These long-term forecasts naturally carry significant uncertainty but indicate that analysts associate positive long-term prospects with the company, assuming successful transformation and settling into a sustainable growth trajectory.
Operational Challenges and Market Outlook
iRobot faces numerous operational challenges that affect its current performance and future prospects. Main reasons for the revenue decline include decreasing order volumes from retailers and distributors, as well as increasing competition in the consumer robotics market. The company's promotional activities and inventory adjustments have negatively impacted gross margin.
At the same time, iRobot is making significant efforts to improve operational efficiency. The company has implemented fundamental changes in its innovation, development, and manufacturing processes, which play a central role in its strategy to improve financial performance. Reduced product costs and shorter development periods are expected to result in better margins and improving profitability in the future.
iRobot's market outlook depends on the long-term growth in demand for consumer robotics. The company is focusing on new product launches, which are expected to facilitate the return of revenue growth in 2025. Analyst expectations suggest the company will return to a growth trajectory, although the path to profitability still appears long.
Conclusions and Investor Outlook
iRobot Corporation is currently in a transitional period where financial results still show challenges, but signs of improvement are already visible. The company's operating and net losses have decreased compared to the previous year, and management has taken decisive measures to reduce costs and improve operational efficiency.
Financial forecasts show gradual improvement in the coming years, although the company is expected to remain unprofitable in 2025. EBITDA and EBIT indicators show significant improvement, and the EBITDA margin may enter positive territory in 2025.
Stock price forecasts indicate significant growth potential for 2025, albeit with a wide volatility range. Long-term forecasts are even more optimistic, projecting significant growth in the coming decades.
For investors, iRobot shares currently represent a high-risk but potentially high-return investment. The company's successful transformation and restoration of competitiveness in the consumer robotics market will be crucial for the future development of the stock price. Investors should consider both short-term challenges and long-term growth potential when making investment decisions regarding iRobot shares.
Continuous monitoring of the transformation process progress and the success of new product launches will be essential for evaluating iRobot's future prospects. The year 2025 will be particularly important, as the company is expected to return to a growth trajectory during this period, and this timeframe will show whether the restructuring efforts truly deliver the expected results.
IRBT Symmetrical Triangle Breakout Setup - Entry, Targets & SL!
Entry Point: Around $12.20, marked by the yellow line.
Stop Loss (SL): At $11.10, marked by the white horizontal line.
Target 1 (T1): At $13.41, represented by the red horizontal line.
Target 2 (T2): At $15.08, represented by the green horizontal line.
This setup highlights a breakout from a symmetrical triangle pattern, offering a clear strategy for entry, risk management, and profit-taking.
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Short SqueezeLooks like someone somewhere knows something. I entered at $9 and I’ve already moved stop loss to break even. Let’s see how far this can go
IRBT close to key Support LevelIRBT close to support level but needs to break out of pattern to increase chance of bullish activity
IRBT is breaking out of a narrow baseIRBT has been narrowing since mid-May and is breaking out today. Not a lot of activity on Twitter. My stop loss is 8.50.
iRobot still has valueThe company still has expertise and patents in the robot and automation world. Their debt is manageble and robotics still has potential in other areas like warehouse. Also a 33% short interest means that any move up would encourage shorters to close their positions. I think 28$ is a good target.
Hidden price target, $APPL wants in. $IRBT will bounce backHidden price target and confluence of support , $APPL wants in. NASDAQ:IRBT will bounce back
IRobot Announces Restructuring Plan and Leadership ChangesiRobot Corporation (NASDAQ: NASDAQ:IRBT ), a prominent player in the consumer robotics industry, has unveiled a comprehensive operational restructuring plan. The announcement comes on the heels of the mutual decision with Amazon to terminate their proposed merger agreement. The restructuring plan includes leadership transitions, cost-saving measures, and a renewed focus on core business elements. Let's delve into the details and implications of this transformative strategy for iRobot.
Leadership Transition:
One of the significant changes involves the departure of Colin Angle, the long-standing Chairman and CEO of iRobot. Angle, who founded the company over three decades ago, has played a pivotal role in revolutionizing the robotics industry. Despite stepping down from his leadership roles, Angle will continue to serve on the iRobot Board of Directors until May 2024 and will act as a senior advisor for up to 12 months to facilitate a smooth transition.
Glen Weinstein, iRobot's Executive Vice President and Chief Legal Officer, steps into the role of Interim CEO. The board has initiated a search for a permanent CEO with the support of a leading executive search firm. These leadership changes signal a strategic shift and the need for a leader with turnaround experience to guide iRobot through its next chapter.
Operational Restructuring Plan:
The operational restructuring plan aims to align iRobot's cost structure with near-term revenue expectations and drive profitability. Key initiatives include achieving margin improvements, reducing R&D expenses through offshoring, centralizing global marketing activities, rightsizing the global real estate footprint, and focusing the product roadmap on core value drivers. The company anticipates generating $80-$100 million in savings through agreements with manufacturing partners and reducing its workforce by 31%, resulting in approximately 350 job cuts.
Jeff Engel, a seasoned turnaround expert, has been appointed Chief Restructuring Officer to oversee the implementation of these initiatives. The restructuring efforts are expected to incur charges of $12-$13 million, primarily for severance and related costs.
Financial Update:
iRobot provided preliminary fourth-quarter results, indicating a 25% reduction in full-year 2023 revenue compared to the previous year, a GAAP operating loss of $265-$285 million, and a non-GAAP operating loss of approximately $200 million. The company ended fiscal year 2023 with $185 million in cash and cash equivalents. Under the terminated merger agreement, Amazon ( NASDAQ:AMZN ) will pay iRobot ( NASDAQ:IRBT ) a $94 million termination fee, providing a financial cushion to support future repayments and inventory purchases.
Looking Ahead:
Despite the disappointment in the company's 2023 performance, iRobot's ( NASDAQ:IRBT ) leadership expresses confidence in the strategic measures taken. Andrew Miller, the newly appointed Chairman of the Board, emphasizes a renewed focus on the company's brand, product performance, and underlying technology. The upcoming fourth-quarter earnings call on February 27, 2024, is expected to provide additional insights into iRobot's restructuring efforts and future business plans.
Conclusion:
iRobot's ( NASDAQ:IRBT ) announcement of a comprehensive operational restructuring plan and leadership changes reflects a proactive response to current challenges. The strategic shift towards profitability, cost optimization, and a refined business focus signals a commitment to long-term sustainability and growth. As the company navigates this transformative phase, the industry and investors will be closely watching for the successful execution of these strategic initiatives and the potential resurgence of iRobot's ( NASDAQ:IRBT ) brand in the consumer robotics market.
IROBOT Stock Chart Fibonacci Analysis 032923 Trading Idea
1) Find a FIBO slingshot
2) Check FIBO 61.80% level
3) Entry Point > 43.5/61.80%
IRBT | Mmmnn... I Like it Here | LONGiRobot Corporation designs, builds, and sells robots and home innovation products in the United States, Europe, the Middle East, Africa, Japan, and internationally. The company offers floor care products, including Roomba floor vacuuming robots; Roomba accessories and consumables, such as the Clean Base Automatic Dirt Disposal, replacement dirt disposal bags for the Clean Base, filters, brushes, and batteries; Braava family of automatic floor mopping robots; and Braava accessories and consumables, which include cleaning solution, washable and disposable mopping pads, replacement tanks, and batteries, as well as subscription services. It also provides H1 Handheld Vacuum, a portable vacuum; H1 Handheld Vacuum accessories comprising filters, chargers, batteries, and an extension kit that converts the H1 Handheld Vacuum into a stick vacuum; air purifiers under the Aeris brand; Root robots to help children learn how to code; and Create 2, a mobile robot platform that offers an opportunity for educators, developers, and high-school and college students to program behaviors, sounds, movements, and add additional electronics, as well as sells filters and fabric covers. The company sells its products through chain stores and other national retailers, distributors, and resellers, as well as through its website and app, and e-commerce websites. iRobot Corporation was incorporated in 1990 and is headquartered in Bedford, Massachusetts.
IRBT Reversal with Momentum from two quarters in a row of beating on earnings.
ADX oscillator shows a positive direction.
Good support for long entry just above
POC on long-term volume profile
This is the company that makes the vacuum cleaner robots
and those that mow the grass.
IRBT Long Term Buying OpportunityIRBT looks like an attractive long-term buy as it sits hovering around its 13-year support trend line. RSI signaling we are around oversold territory on the weekly. Scaling into an IRBT position seems like a smart move here as short-term momentum will likely take price action lower to the 29.72 support area.
This is not financial advice. Good Luck!
Shorting $IRBT iRobot Corporation and after going longWill be shorting $IRBT iRobot Corporation to the range of $30, after that will go long to the the target of $75 and exit it.
$IRBT Growing Fast and Technically OversoldiRobot makes robotic applications primarily for residential household use, like vacuums and pool cleaners. The company has a steady upward trajectory with revenue growing on average 20% per annum for the past several years. However today, the stock has been beaten down 3.75% on below average volume. It's currently under the lower Buy Sell Band with a RSI of 13 and range indicators showing price is in a non-trending mode, with 12.68% upside to the 50 day MA now looks like a good long play.
iRobot: Undervalued Amid Global Chip ShortageRelated News : "Bad decisions, bad luck, and then increased demand" has led to a global semiconductor shortage, with the bad luck being the covid 19 pandemic closing down the only factories that made chips, and the increased demand being bored children who want a new iPhone 12 to pass time during quarantine.
How iRobot is Affected : iRobot needs semiconductors to make their Roomba vacuum cleaners. The global chip shortage is reducing the amount of vacuums they can produce, which leads to lower gross revenue and makes the business seem more unattractive to outside investors.
Fundamental Analysis : A PE (price to earnings) ratio of 20.48 and a PB (price to book) ratio of 2.86 indicates this company is still modestly valued, despite the recent 60% selloff from its all time high of 196$. A current ratio of 2.90 and a DE (debt to equity) ratio of 0 shows iRobot can easily pay off any debt it may have. Sales over the past five years have increased by 18.30% annually, and iRobots EPS (earnings per share) has increased by 28.50% annually, leading me to believe this is a fast growing company. ROE (return on equity) is 13.90% as well. All in all, everything is good with iRobots balance sheet, at least for now. In the future, however, the company has stated that revenue, net profit, and eps will not be in line with past predictions; the chip shortage will temporarily reduce profits and gross revenue, although next year will be better as the semiconductor situation gets under control. iRobot also said it plans to repurchase 100 million dollars worth of shares under an accelerated share repurchasing agreement next month, which means a slight increase in stock prices in the shorter term.
Technical Analysis : iRobot has been in a downtrend for the past six-seven months, which provides an opportunity to buy the dip (my favorite term)! My proposed buying range is between 60-70$, as it has not yet been established how long this downtrend will continue. 60-70$ is an area with many key supports, which makes it a good place to enter into a then undervalued stock. My first price target is 100$ by December of next year. The semiconductor situation will have been resolved by then, and it is likely more outside investors will be interested in iRobot when the money starts flowing. My second price target is 132$ by August of 2023. iRobot will have completely recovered and should continue to grow at a fast pace, resulting in a higher stock price than in previous years.
Personal Opinion : Honestly, I believe iRobot will survive the semiconductor shortage and do well in the next two to three years. It has the fundamentals, the buyback plan, the temporarily adverse market conditions to make the stock a bargain, and the strong support levels that provide a place to park my money. Everything is there; and I won't miss this opportunity like I missed bitcoin at 10k (damn it).
***Diamond hands to you all---and also, this is not actual financial advice. You can follow it, of course, but I'm not a financial advisor, nor am I a guru or an old hag with a magic mirror; I do this for fun, and to improve my personal trading. Link is down below to my Alibaba idea, where I dive into why this Chinese tech stock has the potential to provide some massive returns.***
IRBT Retesting Support and Divergent RSIIRBT daily frame shows a hammer candle matching previous support from January. RSI shows a slight uptrend in divergence against price which is in a downtrend with new lower lows. Fibonacci retracement suggests possibles take profit points. Wait until confirmation in lower timeframes so the best entry point could be found.
Disclaimer: This is not financial advice. This is just an idea. Trade under your own risk.
IRBT straddling the 200 day maNASDAQ:IRBT holding the 200 day. Small position JUN 18 '21 $100 CALLS @$3.40
