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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3353
Positioning
Market Dominance
Services
Computer Software
$96.0B
David B. Baszucki
Roblox Corporation develops and operates an online entertainment platform. The company offers a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content. It serves customers in the United States, the United Kingdom, Canada, Europe, China, the Asia-Pacific and internationally.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = RBLX ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$RBLX Roblox Corp | 42 | 34 | 41 | 51 | - | - | -265.1% | -10.4% | 78.1% | -26.7% | -23.0% | 52.2% | 0.0% | 313.0x | $96.0B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
Roblox Corp (RBLX) receives a "Reduce" rating with a composite score of 41.5/100. It ranks #3353 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for RBLX.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 34 | 23 | +11ALPHA |
| MOMENTUM | 51 | 51 | 0NEUTRAL |
| VALUATION | 41 | 39 | +2NEUTRAL |
| INVESTMENT | 22 | 7 | +15ALPHA |
| STABILITY | 46 | 46 | 0NEUTRAL |
| SHORT INT | 81 | 93 | -12DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC -618.0% vs WACC 9.5% (spread -627.5%)
GM 78% vs sector 65%, OM -27% vs sector 5%
Capital turnover 31.04x, R&D intensity 32.1%
Rev growth 52%, 5yr history
Interest coverage -119.0x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Roblox Corp (RBLX) as a Reduce with a composite score of 41.5/100 at a current price of $66.75. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Roblox Corp holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 41.5/100 places it at rank #3353 in our full universe.
Narrow
Very High
Poor
Fair Value
Gross margins of 78% signal strong pricing power.
Stable competitive position in a defensive sector.
Leverage of 313% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
Roblox Corp represents a reduce based on multi-factor quantitative performance.
Roblox Corp receives a Reduce rating from our analysis, with a composite score of 41.5/100 and 2 out of 5 stars, ranking #3353 out of 7,333 stocks. RBLX's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
RBLX's quality score of 34/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -265.1% (sector avg: 5.7%), gross margins of 78.1% (sector avg: 64.6%), net margins of -23.0% (sector avg: 2.8%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 41/100, RBLX appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 117.99x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Roblox Corp's investment score of 22/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 52.2% vs. a sector average of 8.6% and a return on assets of -10.4% (sector: 2.4%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
RBLX demonstrates moderate momentum with a score of 51/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 52.2% year-over-year, while a beta of 1.28 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 46/100, RBLX exhibits average financial resilience. Key stability metrics include a beta of 1.28 and a debt-to-equity ratio of 313.00x (sector avg: 0.3x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
RBLX's short interest factor score of 81/100 indicates very low short selling activity relative to peers — a positive signal suggesting institutional investors see limited near-term downside. Specific risk factors include above-average market sensitivity (beta: 1.28), elevated leverage (D/E: 313.00x). As a large-cap company with a market capitalization of $96.0B, Roblox Corp benefits from the generally lower volatility and deeper liquidity associated with its size class.
Roblox Corp is a large-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #3353 of 7,333 overall (54th percentile). Key comparisons include ROE of -265.1% trailing the 5.7% sector median and operating margins of -26.7% below the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While RBLX currently exhibits a REDUCE profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Investment (22) would have the largest impact on the composite score.
ROE 4718% BELOW SECTOR MEDIAN
Gross Margin 21% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 692% BELOW SECTOR MEDIAN
U.S. stock futures advanced on Friday following Thursday's sharp sell-off, with major indices showing gains. Amazon dropped 8.39% after mixed Q4 results, while Reddit surged 11.22% on strong earnings and guidance. Roblox jumped 14.41% and Strategy Inc. gained 6.98% after beating estimates. The January jobs report was delayed to next Wednesday due to a government shutdown. Markets are pricing an 81.3% likelihood of the Fed keeping rates unchanged in March.
U.S. stocks experienced significant volatility this week with the NASDAQ down nearly 4%, driven by AI spending concerns. Amazon plunged 9% after announcing a $200 billion 2026 capex increase for AI infrastructure. Weak jobs data, including rising job cuts and falling openings, raised growth concerns. The Dow Jones fared better, remaining relatively flat as investors rotated from tech to cyclical stocks. Oil prices declined over 3.5% amid weak fundamentals and Saudi price cuts.
Roblox (NYSE: RBLX) shares surged 18.38% to $71.70 in after-hours trading following strong Q4 earnings results. The company beat revenue estimates with $2.22 billion in quarterly revenue (vs. $2.05 billion consensus) and reported 144 million daily active users. Full-year 2025 results showed 36% revenue growth to $4.9 billion and 55% bookings growth to $6.8 billion, with top creators earning an average of $1.3 million.
Google's Project Genie AI game design tool sparked a market sell-off in gaming stocks, raising concerns about disruption to game engines and platforms. However, analysts argue the technology is still limited and may actually benefit established platforms with distribution control and quality gatekeeping. Meanwhile, PayPal's CEO departure signals board dissatisfaction, though the stock's valuation at 8.5x earnings presents a potential value opportunity.
Australia recently became the first country to outlaw anyone under 16 from having a social media profile. Spain, France and Greece are following suit.
Above 50MA
37.18%
Net New Highs
+51081