Cash-Rich Stocks to Buy: iRobot (IRBT)
Cash-to-Market Cap: 11.0%
iRobot Corporation (NASDAQ:IRBT) makes products that keep your house looking clean, including the Roomba robot vacuum, the Braava robot mop and Mirra robot pool cleaner. It finished Q1 2017 with $275.7 million in cash and no long-term debt.
People are time-starved these days, so anything that can get some of that time back to enjoy life rather than cleaning up after yourself is going to be a winner in the long-term.
iRobot’s first-quarter results were a thing of beauty. Revenues increased 28.8% to $168.5 million while operating income was $21.6 million, 292.7% higher than a year earlier. U.S. and international revenues increased by 34% and 29%, respectively. In fiscal 2017, iRobot expects revenues and operating income of least $780 million and $60 million respectively.
In April, iRobot filed suit against Hoover, Stanley Black & Decker, Inc. (NYSE:SWK) and Bissell Homecare, which the company says are infringing on its patented technology. As iRobot moves into China and elsewhere, its intellectual property must be protected against unauthorized use.
“As a pioneer in consumer robots for the home, iRobot has invested significantly in the development of robotic technologies and the protection of our intellectual property,” said Colin Angle, chairman and chief executive officer of iRobot. “The filing of this litigation signals our commitment to protecting our investments.”
iRobot clearly has its eye on the prize.