Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on iRobot Corporation (NASDAQ:IRBT) due to its excellent fundamentals in more than one area. IRBT is a company with great financial health as well as a an impressive history of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, take a look at the report on iRobot here.
Flawless balance sheet with solid track record
IRBT delivered a bottom-line expansion of 64% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did IRBT outperformed its past performance, its growth also surpassed the Consumer Durables industry expansion, which generated a 19% earnings growth. This paints a buoyant picture for the company. IRBT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. Looking at IRBT's capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$2.6b market cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For iRobot, there are three important aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for IRBT’s future growth? Take a look at our free research report of analyst consensus for IRBT’s outlook.
- Valuation: What is IRBT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether IRBT is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IRBT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.