Roblox Corporation
Roblox Corporation Fundamental Analysis
Roblox Corporation (RBLX) shows moderate financial fundamentals with a PE ratio of -46.66, profit margin of -21.78%, and ROE of -2.91%. The company generates $4.9B in annual revenue with strong year-over-year growth of 28.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -279.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RBLX's fundamental strength across five key dimensions:
Efficiency Score
WeakRBLX struggles to generate sufficient returns from assets.
Valuation Score
ModerateRBLX shows balanced valuation metrics.
Growth Score
ExcellentRBLX delivers strong and consistent growth momentum.
Financial Health Score
WeakRBLX carries high financial risk with limited liquidity.
Profitability Score
WeakRBLX struggles to sustain strong margins.
Key Financial Metrics
Is RBLX Expensive or Cheap?
P/E Ratio
RBLX trades at -46.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RBLX's PEG of 5.56 indicates potential overvaluation.
Price to Book
The market values Roblox Corporation at 125.99 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -62.02 times EBITDA. This is generally considered low.
How Well Does RBLX Make Money?
Net Profit Margin
For every $100 in sales, Roblox Corporation keeps $-21.78 as profit after all expenses.
Operating Margin
Core operations generate -25.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-2.91 in profit for every $100 of shareholder equity.
ROA
Roblox Corporation generates $-11.14 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Roblox Corporation generates strong operating cash flow of $1.81B, reflecting robust business health.
Free Cash Flow
Roblox Corporation generates strong free cash flow of $1.49B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.10 in free cash annually.
FCF Yield
RBLX converts 2.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-46.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
125.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.15
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-2.91
vs 25 benchmark
ROA
Return on assets percentage
-0.11
vs 25 benchmark
ROCE
Return on capital employed
-0.28
vs 25 benchmark
How RBLX Stacks Against Its Sector Peers
| Metric | RBLX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -46.66 | 35.87 | Better (Cheaper) |
| ROE | -290.61% | 1175.00% | Weak |
| Net Margin | -21.78% | -136937.00% (disorted) | Weak |
| Debt/Equity | 4.15 | 0.45 | Weak (High Leverage) |
| Current Ratio | 0.96 | 4.81 | Weak Liquidity |
| ROA | -11.14% | -312685.00% (disorted) | Weak |
RBLX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Roblox Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
475.82%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-971.21%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
573.81%
Industry Style: Growth, Innovation, High Beta
High Growth