Morningstar Rating

Stock Research and Analysis

by Adam Fleck, CFA

Bulls Say

The robotic vacuum has made inroads into the overall vacuum market since Roomba's inception in 2002 and now constitutes about 18% of the global industry (defined as vacuums over $200 apiece), up from 5% in 2009.
Because of its scalable cost structure, iRobot should be able to continue expanding profitability as deliveries increase.
IRobot's RP-VITA and AVA 500 telepresence robots offer a new, albeit uncertain, avenue for growth outside of the firm's core consumer space. Read more 

Bears Say

Some of iRobot's planned product offerings, such as robots for cleaning pools and doing other household chores, may enter more-established markets with less opportunity for growth.
Although we like that management and directors own a substantial portion of shares, these insiders have been rapidly selling shares since the initial lock-up period ended in early 2006.
IRobot faces greater competition for home robots in China; the company holds just a 10% market share in the country versus more-dominant positions in the U.S., Europe, and Japan. Read more 

Management

Three former Massachusetts Institute of Technology researchers--current CEO Colin Angle, former chairwoman Helen Greiner, and former chief technology officer Rodney Brooks--founded iRobot in 1991. We think Angle's pay over the past several years has   Read more 

Profile

Based in Bedford, Mass., and founded by MIT researchers, iRobot designs small, artificially intelligent consumer and military robots. The company's most successful products   Read more 

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