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iRobot (IRBT) Valuation Check After Trump’s Potential Robotics Support Sparks Speculation

Simply Wall St·12/07/2025 16:12:30
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iRobot (IRBT) just swung back into the spotlight after reports that the Trump administration is weighing an executive order to support the domestic robotics industry, sparking a sharp rally and fresh questions about its long term prospects.

See our latest analysis for iRobot.

The speculation around federal support has lit a fire under iRobot, with a 133.54% 7 day share price return and a 67.73% 30 day share price return, yet the 1 year total shareholder return of minus 58.72% shows that long term momentum is still deeply negative and this move looks more like a sharp sentiment reset than a full trend change.

If this kind of policy driven rally has your attention, it could be a good moment to see which other high growth tech names are catching flows through high growth tech and AI stocks.

With the stock still down sharply over one and three years, despite a rally that more than doubled the share price in a week, are investors staring at a deeply discounted turnaround story, or has the market already priced in every ounce of future growth?

Price to Sales of 0.2x, is it justified?

iRobot trades on a 0.2x price to sales ratio at a last close of $3.69, a steep discount compared to both peers and the wider Consumer Durables industry.

The price to sales multiple compares the company’s market value to its annual revenue, which is often more useful than earnings based ratios for loss making businesses like iRobot.

With revenues of roughly $547 million but ongoing losses and negative shareholder equity, a cut price sales multiple suggests investors are heavily discounting the durability of that revenue base and the odds of a profitable turnaround.

Relative to a 0.6x industry average and a 0.4x peer group average, the current 0.2x multiple signals that the market is pricing iRobot as a distressed outlier rather than a typical consumer durables name.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to Sales of 0.2x (UNDERVALUED)

However, investors still face meaningful risks, including prolonged losses from weak consumer demand and the possibility that policy support fails to translate into sustainable profitability.

Find out about the key risks to this iRobot narrative.

Build Your Own iRobot Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a fresh perspective in just a few minutes: Do it your way.

A great starting point for your iRobot research is our analysis highlighting 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.