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IRBT

Irobot Corp – Small Electrical Appliance Manufacturing
iRobot®, the leading global consumer robot company, designs and builds robots that empower people to do more both inside and outside of the home. iRobot created the home robot cleaning category with the introduction of its Roomba® Robot Vacuum in 2002. Today, iRobot is a global enterprise that has sold more than 30 million robots worldwide. iRobot's product line, including the Roomba and the Braava® family of mopping robots, feature proprietary technologies and advanced concepts in cleaning, mapping and navigation. iRobot engineers are building an ecosystem of robots and technologies to enable the smart home.
Analysis Results
Intrinsic Value $37.08
Latest Price $57.47
Relative Value 55% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 4.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 84.5 76.5
2023 88.3 72.3
2024 92.2 68.4
2025 96.3 64.7
2026 101 61.1
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1210 million. This corresponds to a present value of 667 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 343 million. Adding in the terminal value gives a total present value of 1010 million.

There are presently 27.2 million outstanding shares, so the intrinsic value per share is 37.08.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 789,533,000
Current Cash 234,501,000
Current Liabilities 395,683,000
Current Debt 0
Non-Cash Working Capital (NCWC) 159,349,000
Change in NCWC 69,411,000
EBIT -1,100,000
Tax Provision -2,106,000
Depreciation and Amortization 33,309,000
Capital Expenditure -29,928,000
Unlevered Free Cash Flow 71,692,000
Current Assets 881,221,000
Current Cash 483,716,000
Current Liabilities 307,567,000
Current Debt 0
Non-Cash Working Capital (NCWC) 89,938,000
Change in NCWC -45,353,000
EBIT 146,322,000
Tax Provision 40,847,000
Depreciation and Amortization 34,762,000
Capital Expenditure -31,599,000
Unlevered Free Cash Flow 72,326,051
Current Assets 594,217,000
Current Cash 256,424,000
Current Liabilities 202,502,000
Current Debt 0
Non-Cash Working Capital (NCWC) 135,291,000
Change in NCWC -3,411,000
EBIT 86,618,000
Tax Provision 13,533,000
Depreciation and Amortization 37,159,000
Capital Expenditure -35,337,000
Unlevered Free Cash Flow 73,168,574
Current Assets 514,437,000
Current Cash 161,978,000
Current Liabilities 213,757,000
Current Debt 0
Non-Cash Working Capital (NCWC) 138,702,000
Change in NCWC 67,560,000
EBIT 105,822,000
Tax Provision 20,630,000
Depreciation and Amortization 36,574,000
Capital Expenditure -32,422,000
Unlevered Free Cash Flow 157,435,789
Current Assets 434,726,000
Current Cash 165,860,000
Current Liabilities 197,724,000
Current Debt 0
Non-Cash Working Capital (NCWC) 71,142,000
Change in NCWC 54,561,000
EBIT 72,690,000
Tax Provision 25,402,000
Depreciation and Amortization 25,499,000
Capital Expenditure -23,371,000
Unlevered Free Cash Flow 105,199,766
Current Assets 383,670,000
Current Cash 254,453,000
Current Liabilities 112,636,000
Current Debt 0
Non-Cash Working Capital (NCWC) 16,581,000
Change in NCWC -63,103,000
EBIT 58,957,000
Tax Provision 19,422,000
Depreciation and Amortization 13,606,000
Capital Expenditure -10,817,000
Unlevered Free Cash Flow -20,018,085
Current Assets 389,349,000
Current Cash 213,039,000
Current Liabilities 96,626,000
Current Debt 0
Non-Cash Working Capital (NCWC) 79,684,000
Change in NCWC 25,989,000
EBIT 60,618,000
Tax Provision 18,841,000
Depreciation and Amortization 15,090,000
Capital Expenditure -9,372,000
Unlevered Free Cash Flow 74,188,020
Current Assets 374,859,000
Current Cash 222,123,000
Current Liabilities 99,041,000
Current Debt 0
Non-Cash Working Capital (NCWC) 53,695,000
Change in NCWC 21,307,000
EBIT 53,117,000
Tax Provision 14,606,000
Depreciation and Amortization 13,049,000
Capital Expenditure -13,774,000
Unlevered Free Cash Flow 58,895,685
Current Assets 300,661,000
Current Cash 187,358,000
Current Liabilities 80,915,000
Current Debt 0
Non-Cash Working Capital (NCWC) 32,388,000
Change in NCWC 11,193,000
EBIT 32,618,000
Tax Provision 4,774,000
Depreciation and Amortization 12,169,000
Capital Expenditure -6,829,000
Unlevered Free Cash Flow 44,347,102
Current Assets 237,558,000
Current Cash 139,200,000
Current Liabilities 77,163,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,195,000
Change in NCWC 6,134,000
EBIT 25,172,000
Tax Provision 8,310,000
Depreciation and Amortization 11,672,000
Capital Expenditure -6,770,000
Unlevered Free Cash Flow 28,039,166

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