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RBLX

BEARISH
$45.13 Live
Roblox Corporation · NYSE
Target $80.07 (+77.4%)
$41.75 52W Range $150.59

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
Roblox exhibits severe financial instability, highlighted by a weak Piotroski F-Score of 2/9 and a concerning Debt/Equity ratio of 3.97. While the company maintains strong top-line momentum with 39.3% YoY revenue growth, this is offset by a massive negative ROE of -311.94% and a current ratio below 1.0 (0.89), indicating liquidity risks. The stock is in a technical freefall, losing over 60% of its value in the last six months, coupled with bearish insider selling and an astronomical Price-to-Book ratio of 81.02.

Key Strengths

Strong YoY revenue growth of 39.30%
Consistent earnings beats (3 of the last 4 quarters)
Positive Q/Q EPS growth of 40.0%
High analyst target price ($80.07) suggesting long-term optimism
Dominant market position in the electronic gaming and multimedia sector

Key Risks

Critical financial health (Piotroski F-Score 2/9)
Severe valuation disconnect (Price/Book of 81.02)
Liquidity risk with a Current Ratio of 0.89
High leverage with a Debt/Equity ratio of 3.97
Strong bearish technical trend (-60.3% 6-month return)
AI Fair Value Estimate
Based on comprehensive analysis
$32.5
-28.0% below current price

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