Roblox Corp (NYSE: RBLX)

Sector: Communication Services Industry: Electronic Gaming & Multimedia CIK: 0001315098
Market Cap 43.57 Bn
P/B 110.45
P/E -40.91
P/S 8.91
ROIC (Qtr) -61.05
Div Yield % 0.00
Rev 1y % (Qtr) 43.19
Total Debt (Qtr) 1.64 Bn
Debt/Equity (Qtr) 4.15
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About

Roblox Corporation, often referred to as Roblox, is a digital entertainment company that operates a platform for connection and communication. This platform enables users to create, play, work, learn, and interact with others in immersive 3D experiences. The company's mission is to reimagine the way people come together in a world that is safe, civil, and optimistic. Roblox's primary source of revenue is the sale of its virtual currency, Robux, which users can utilize to purchase virtual items and accessories for their avatars, as well as through...

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Investment thesis

Bull case

  • Strong operating cash flow of 1.80B provides robust 1.10x coverage of total debt 1.64B, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 1.80B provides exceptional 43.33x coverage of interest expenses 41.46M, showing strong debt service capability.
  • Strong tangible asset base of 9.40B provides 5.74x coverage of total debt 1.64B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 1.36B exceeds capital expenditure of 440.98M by 3.07x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 1.80B provides 2.17x coverage of SG&A expenses 826.29M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 1.80B barely covers its investment activities of (1.39B), with a coverage ratio of -1.29, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.39B) provide weak support for R&D spending of 1.57B, which is -0.89x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 1.80B provides insufficient coverage of deferred revenue obligations of 6.51B, which is 0.28x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 1.80B shows concerning coverage of stock compensation expenses of 1.13B, with a 1.59 ratio indicating potential earnings quality issues.
  • Operating earnings of (1.02B) show weak coverage of depreciation charges of 346.10M, with a -2.95 ratio indicating high capital intensity and potential reinvestment needs.

Concentration Risk Benchmark Breakdown of Revenue (2025)

Concentration Risk Benchmark Breakdown of Revenue (2025)

Peer comparison

Companies in the Electronic Gaming & Multimedia
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NTES NetEase, Inc. 76.19 Bn 15.89 4.76 0.91 Bn
2 EA Electronic Arts Inc. 50.25 Bn 73.90 6.88 1.89 Bn
3 RBLX Roblox Corp 43.57 Bn -40.91 8.91 1.64 Bn
4 TTWO Take Two Interactive Software Inc 34.06 Bn -8.59 5.19 3.51 Bn
5 PLTK Playtika Holding Corp. 1.22 Bn 14.21 0.45 2.54 Bn
6 SOHU Sohu.com Ltd 0.46 Bn 1.16 0.78 0.00 Bn
7 GRVY GRAVITY Co., Ltd. 0.45 Bn 8.02 1.09 0.00 Bn
8 DDI DoubleDown Interactive Co., Ltd. 0.43 Bn 4.17 1.19 0.04 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.62 0.73
EV to Cash from Ops. EV/CFO 24.59 9.02
EV to Debt EV to Debt 26.99 42.93
EV to EBIT EV/EBIT -43.30 5.14
EV to EBITDA EV/EBITDA -49.83 -0.17
EV to Free Cash Flow [EV/FCF] EV/FCF 32.58 2.00
EV to Market Cap EV to Market Cap 1.01 0.31
EV to Revenue EV/Rev 9.03 -278.61
Price to Book Value [P/B] P/B 110.45 5.21
Price to Earnings [P/E] P/E -40.91 5.61
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1,143.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.62
Dividend per Basic Share Div per Share (Qtr) 0.00 0.31
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 21.95
Interest Coverage Int. cover (Qtr) -24.60 2.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -145.47 -144.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 69.36 2,047.52
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.39
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -14.48 10.58
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -23.30 -40.36
EBIT Growth (1y) % EBIT 1y % (Qtr) -14.60 28.44
EBT Growth (1y) % EBT 1y % (Qtr) -13.98 -25.09
EPS Growth (1y) % EPS 1y % (Qtr) -6.94 -25.14
FCF Growth (1y) % FCF 1y % (Qtr) 110.90 -203.71
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 36.33 977.78
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.51 0.61
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.24 1.98
Current Ratio Curr Ratio (Qtr) 0.96 4.93
Debt to Equity Ratio Debt/Equity (Qtr) 4.15 -1.05
Interest Cover Ratio Int Coverage (Qtr) -24.60 2.42
Times Interest Earned Times Interest Earned (Qtr) -24.60 2.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -13.80 9,395.66
EBIT Margin % EBIT Margin % (Qtr) -20.86 10,488.08
EBT Margin % EBT Margin % (Qtr) -21.70 -43,333.75
Gross Margin % Gross Margin % (Qtr) 78.10 57.20
Net Profit Margin % Net Margin % (Qtr) -21.80 -43,332.40