Investment Research report

iRobot Corp.

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iRobot Corp.
About to Short Circuit (original)
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iRobot Corp.
Shark Infected Waters (Update 1)
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iRobot Corp.
Shark Infected Waters (Update 2)
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iRobot Corp.
Update 3 – Report 4
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iRobot Corp.
All Good Things Come To An End (Update 4) – Report 5
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iRobot Corp.
All Good Things Come To An End (Update 5) – Report 6
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iRobot Corp.
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Research Overview

S&P 500
Consumer Discretionary
Mar 11, 2019

After conducting a forensic financial and accounting review, Spruce Point believes iRobot Corp (Nasdaq: IRBT), a robotics company, has been covering up weakening fundamentals and growth prospects, questionable reliability and accuracy of the financial guidance. Based on our original investigation, we estimated a 25% to 40% downside risk or $20.00 - $25.00 per share. We have since updated this estimate five times, most recently to a 60% to 80% downside risk.

The report highlights several key concerns with the company, including: 

  • We believe that recent strength is the result of channel re-stocking, which will likely result in difficult comps going forward
  • We find significant new competition is on the horizon from SharkNinja / Ecovacs
  • Evidence of financial control issues tied to recent acquisition of its Japanese distributor
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