Palantir Technologies Inc.
Palantir Technologies Inc. Fundamental Analysis
Palantir Technologies Inc. (PTX.F) shows strong financial fundamentals with a PE ratio of 140.22, profit margin of 43.66%, and ROE of 32.17%. The company generates $5.0B in annual revenue with strong year-over-year growth of 56.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.4/100 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 PTX.F's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPTX.F demonstrates superior asset utilization.
Valuation Score
ModeratePTX.F shows balanced valuation metrics.
Growth Score
ModeratePTX.F shows steady but slowing expansion.
Financial Health Score
ExcellentPTX.F maintains a strong and stable balance sheet.
Profitability Score
ExcellentPTX.F achieves industry-leading margins.
Key Financial Metrics
Is PTX.F Expensive or Cheap?
P/E Ratio
PTX.F trades at 140.22 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PTX.F's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values Palantir Technologies Inc. at 37.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 139.91 times EBITDA. This signals the market has high growth expectations.
How Well Does PTX.F Make Money?
Net Profit Margin
For every $100 in sales, Palantir Technologies Inc. keeps $43.66 as profit after all expenses.
Operating Margin
Core operations generate 38.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $32.17 in profit for every $100 of shareholder equity.
ROA
Palantir Technologies Inc. generates $22.42 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 $2.61B, reflecting robust business health.
Free Cash Flow
Palantir Technologies Inc. generates strong free cash flow of $2.58B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.12 in free cash annually.
FCF Yield
PTX.F converts 0.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
140.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
37.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
58.72
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.32
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How PTX.F Stacks Against Its Sector Peers
| Metric | PTX.F Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 140.22 | 36.80 | Worse (Expensive) |
| ROE | 32.17% | 940.00% | Weak |
| Net Margin | 43.66% | 5902782384.00% | Weak |
| Debt/Equity | 0.03 | 0.40 | Strong (Low Leverage) |
| Current Ratio | 6.91 | 4.94 | Strong Liquidity |
| ROA | 22.42% | -295168.00% (disorted) | Strong |
PTX.F outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, 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
69.00%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
157.49%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
396.92%
Industry Style: Growth, Innovation, High Beta
High Growth