Palantir Technologies Inc.
Palantir Technologies Inc. Fundamental Analysis
Palantir Technologies Inc. (PLTR) shows strong financial fundamentals with a PE ratio of 222.13, profit margin of 36.31%, and ROE of 25.66%. The company generates $4.3B in annual revenue with strong year-over-year growth of 28.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PLTR's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPLTR demonstrates superior asset utilization.
Valuation Score
WeakPLTR trades at a premium to fair value.
Growth Score
ModeratePLTR shows steady but slowing expansion.
Financial Health Score
ExcellentPLTR maintains a strong and stable balance sheet.
Profitability Score
ExcellentPLTR achieves industry-leading margins.
Key Financial Metrics
Is PLTR Expensive or Cheap?
P/E Ratio
PLTR trades at 222.13 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PLTR's PEG of 4.75 indicates potential overvaluation.
Price to Book
The market values Palantir Technologies Inc. at 48.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 241.33 times EBITDA. This signals the market has high growth expectations.
How Well Does PLTR Make Money?
Net Profit Margin
For every $100 in sales, Palantir Technologies Inc. keeps $36.31 as profit after all expenses.
Operating Margin
Core operations generate 31.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.66 in profit for every $100 of shareholder equity.
ROA
Palantir Technologies Inc. generates $18.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Palantir Technologies Inc. generates strong operating cash flow of $2.05B, reflecting robust business health.
Free Cash Flow
Palantir Technologies Inc. generates strong free cash flow of $2.02B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.88 in free cash annually.
FCF Yield
PLTR converts 0.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
222.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.75
vs 25 benchmark
P/B Ratio
Price to book value ratio
48.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
77.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How PLTR Stacks Against Its Sector Peers
| Metric | PLTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 222.13 | 34.43 | Worse (Expensive) |
| ROE | 25.66% | 1135.00% | Weak |
| Net Margin | 36.31% | -134663.00% (disorted) | Strong |
| Debt/Equity | 0.06 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 7.11 | 5.77 | Strong Liquidity |
| ROA | 18.26% | -310462.00% (disorted) | Strong |
PLTR outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Palantir Technologies Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.43%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
125.30%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
321.57%
Industry Style: Growth, Innovation, High Beta
High Growth