Palantir Technologies Inc. (NASDAQ: PLTR)

Sector: Technology Industry: Software - Infrastructure CIK: 0001321655
Market Cap 412.18 Bn
P/B 62.54
P/E 376.30
P/S 105.79
ROIC (Qtr) 12.98
Div Yield % 0.00
Rev 1y % (Qtr) 62.79
Total Debt (Qtr) 235.44 Mn
Debt/Equity (Qtr) 0.04

About

Palantir Technologies Inc., often referred to as Palantir, operates in the software industry, offering innovative solutions that integrate data, decisions, and operations at scale. Established in 2003, Palantir has grown into a leading provider of software solutions for government agencies and commercial enterprises. The company's software platforms aim to help organizations make informed decisions by providing a unified view of their data and operations. Palantir's main business activities revolve around the design and development of software...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 1.82B provides robust 7.72x coverage of total debt 235.44M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.62B provide 34.92x coverage of short-term debt 46.27M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 8.11B provides 34.46x coverage of total debt 235.44M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 1.82B provides exceptional 394.51x coverage of minority interest expenses 4.61M, showing strong core operations.
  • Robust free cash flow of 1.79B exceeds capital expenditure of 23.72M by 75.64x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 1.82B barely covers its investment activities of (1.19B), with a coverage ratio of -1.53, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.19B) provide weak support for R&D spending of 585.62M, which is -2.02x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 1.82B shows concerning coverage of stock compensation expenses of 769.43M, with a 2.36 ratio indicating potential earnings quality issues.
  • Retained earnings of (4.17B) provide limited buffer against comprehensive income items of 11.54M, which is -361.54x, indicating elevated exposure to market risks.
  • Short-term investments of 4.82B represent 0.75x of working capital 6.41B, suggesting potentially excessive financial asset allocation versus operational needs.

Concentration Risk Type Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,554.89 Bn 33.88 12.10 60.56 Bn
2 ORCL Oracle Corp 536.76 Bn 34.80 8.80 124.39 Bn
3 PLTR Palantir Technologies Inc. 412.18 Bn 376.30 105.79 0.24 Bn
4 PANW Palo Alto Networks Inc 127.64 Bn 114.25 13.36 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 114.75 Bn -365.25 25.14 0.82 Bn
6 SNPS Synopsys Inc 84.31 Bn 63.28 11.95 14.29 Bn
7 NET Cloudflare, Inc. 64.21 Bn -623.20 31.89 3.50 Bn
8 FTNT Fortinet, Inc. 59.93 Bn 31.99 9.14 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 50.71 2.61
EV to Cash from Ops. EV/CFO 226.40 30.31
EV to Debt EV to Debt 1,747.79 17.39
EV to EBIT EV/EBIT 370.07 -9.38
EV to EBITDA EV/EBITDA 464.97 7.84
EV to Free Cash Flow [EV/FCF] EV/FCF 229.40 26.48
EV to Market Cap EV to Market Cap 1.00 0.36
EV to Revenue EV/Rev 105.61 -11.97
Price to Book Value [P/B] P/B 62.54 3.77
Price to Earnings [P/E] P/E 376.30 -10.73
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 0.00 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -64.83 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 110.22 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 129.84 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 115.90 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 120.81 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 120.81 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 113.64 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 82.98 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 46.69 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.48 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.37 1.22
Current Ratio Curr Ratio (Qtr) 6.43 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 -0.96
Interest Cover Ratio Int Coverage (Qtr) 0.00 -14.20
Times Interest Earned Times Interest Earned (Qtr) 0.00 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 29.40 -548.16
EBIT Margin % EBIT Margin % (Qtr) 28.54 -199.84
EBT Margin % EBT Margin % (Qtr) 28.54 -607.20
Gross Margin % Gross Margin % (Qtr) 80.80 51.88
Net Profit Margin % Net Margin % (Qtr) 28.10 -610.00