iRobot (NAS:IRBT) Owner Earnings per Share (TTM)

: -0.43 (As of Jun. 2023)

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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

iRobot's Owner Earnings per Share (TTM) ended in Jun. 2023 was $-0.43. It's Price-to-Owner-Earnings ratio for today is 0.

The historical rank and industry rank for iRobot's Owner Earnings per Share (TTM) or its related term are showing as below:

During the past 13 years, the highest Price-to-Owner-Earnings ratio of iRobot was 150.94. The lowest was 8.21. And the median was 34.37.

IRBT's Price-to-Owner-Earnings is not ranked ^*
in the Furnishings, Fixtures & Appliances industry.
Industry Median: 17.50
* Ranked among companies with meaningful Price-to-Owner-Earnings only.

iRobot's Earnings per Share (Diluted) for the three months ended in Jun. 2023 was $-2.93. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2023 was $-13.66. It's PE Ratio ratio for today is At Loss.

iRobot's EPS without NRI for the three months ended in Jun. 2023 was $-2.93. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2023 was $-13.66. It's PE Ratio without NRI ratio for today is At Loss.

iRobot Owner Earnings per Share (TTM) Historical Data

The historical data trend for iRobot's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

iRobot Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Owner Earnings per Share (TTM)

1.07

3.15

7.58

-1.93

-5.95

iRobot Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Owner Earnings per Share (TTM)																-9.53	-8.28	-5.95	-4.82	-0.43

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, iRobot's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

iRobot Owner Earnings per Share (TTM) Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, iRobot's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where iRobot's Owner Earnings per Share (TTM) falls in comparison to its industry or sector. The grey bar indicates the Owner Earnings per Share (TTM)'s extreme value range as defined by GuruFocus.

iRobot Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

iRobot's Owner Earnings per Share (TTM) Calculation:

	TTM / Last Quarter	Average of Last 20 Quarters
Net Income	-374
Depreciation, Depletion and Amortization	43
Change In Deferred Tax	56
5Y Average of Maintenance Capital Expenditure		20
Change In Working Capital	283
Shares Outstanding (Diluted Average)	28

1. Start with "Net Income" from income statement. iRobot's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was $-374 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. iRobot's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jun. 2023 was $43 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. iRobot's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jun. 2023 was $56 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $20 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

iRobot's 5-Year Average Maintenance Capital Expenditure = $20 Mil

5. "Change In Working Capital" is from cashflow statement. iRobot's Change In Working Capital for the trailing twelve months (TTM) ended in Jun. 2023 was $283 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. iRobot's Shares Outstanding (Diluted Average) for the months ended in Jun. 2023 was 27.619 Mil.

iRobot's Onwer Earnings Per Share for Jun. 2023 is calculated as:

	Owner Earnings per Share (TTM)
=	( Net Income	+	Depreciation, Depletion and Amortization	+	Change In Deferred Tax
=	( -374.38	+	42.997	+	56.265
-	5Y Avg of Maintenance CAPEX	+	Change In Working Capital )	/	Shares Outstanding (Diluted Average)
-	19.895372422696	+	283.195)	/	27.619
=	-0.43

Price-to-Owner-Earnings	=	Current Price	/	Owner Earnings per Share (TTM)
	=	37.86	/	-0.43
	=	0

Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.

iRobot Owner Earnings per Share (TTM) Related Terms

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iRobot (NAS:IRBT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » iRobot Corp (NAS:IRBT) » Definitions » Owner Earnings per Share (TTM)

Comparable Companies

Traded in Other Exchanges

I8R:Germany IRBT:Austria

Address

8 Crosby Drive, Bedford, MA, USA, 01730

Website

https://www.irobot.com

iRobot Corp is a united state based consumer robot company. It designs and builds robots that assist consumers with the solutions for the activities to be carried both inside and outside of the home. The company's consumer robot comprises a portfolio of solutions which includes cleaning, mapping and navigation, human-robot interaction, and physical solutions. The company operates in the business segment of Consumer robots. The consumer robot products are provided to the consumers by retail businesses and online store. The company derives its revenue from the product sales. It sells the products across the United States and around the world.

Executives

Karen Golz	director	ONE TECHNOLOGY WAY, NORWOOD MA 02062
Jean Jacques Blanc	officer: Chief Commercial Officer	IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
Faris Habbaba	officer: Chief R&D Officer	IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
Julie Zeiler	officer: EVP, Chief Financial Officer	C/O IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
Karian Wong	officer: VP, Finance	C/O IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
Timothy Saeger	officer: EVP Engineering	C/O IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
David Keith Hartsfield	officer: Chief Product Officer	C/O IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01730
Eva Manolis	director	C/O SHUTTERFLY, INC., 2800 BRIDGE PARKWAY, REDWOOD CITY CA 94065
Ruey Bin Kao	director	CHINA HOLDINGS ACQUISITION CORP., 33 RIVERSIDE AVENUE, 5TH FLOOR, WESTPORT CT 06880
Elisha W Finney	director	C/O VARIAN MEDICAL SYSTEMS, INC, 3100 HANSEN WAY M/S E-327, PALO ALTO CA 94304
Andrew Miller	director	111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Michael Bell	director	C/O SILVER SPRING NETWORKS, INC., 555 BROADWAY STREET, REDWOOD CITY CA 94063
Mohamad Ali	director	2 AVENUE DE LAFAYETTE, BOSTON MA 02111
Michelle Stacy	director	33 COFFEE LANE, WATERBURY VT 05676
Christian Cerda	officer: SVP & GM, Home Robots	IROBOT CORPORATION, 8 CROSBY DRIVE, BEDFORD MA 01930