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TheStreet Open House

Why iRobot (IRBT) Hit an All-Time High Today

NEW YORK (TheStreet) -- iRobot  (IRBT) hit an all-time high of $42.88 as of 11:45 a.m. on Tuesday after the designer and builder of robots earned an honor from The Patent Board for having one of the top patent portfolios in the competitive electronics and instruments industry.

The board ranked iRobot fifth on the list overall, ahead of SamsungPanasonic and others. The company ranked second in the "Science Strength" category and third in the "Industry Impact" category. "Science Strength" measures the degree to which a company's portfolio is connected to core science, and iRobot was four times stronger in this category than the next entrant on the list. "Industry Impact" measures the influence of a company's patents on technology developed by the rest of the industry.

The company currently holds 238 U.S. patents and more than 400 worldwide patents.

Must ReadIRobot Honored For Strong Patent Portfolio

TheStreet Ratings team rates IROBOT CORP as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate IROBOT CORP (IRBT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • IROBOT CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, IROBOT CORP increased its bottom line by earning $0.94 versus $0.61 in the prior year. This year, the market expects an improvement in earnings ($1.15 versus $0.94).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 153.7% when compared to the same quarter one year prior, rising from -$5.94 million to $3.19 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 26.3%. Since the same quarter one year prior, revenues rose by 25.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • IRBT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.81, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 152.38% and other important driving factors, this stock has surged by 62.04% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • You can view the full analysis from the report here: IRBT Ratings Report

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