Palantir Technologies Inc. (PLTR) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001321655

P/B 66.39

P/E 399.47

P/S 112.31

Market Cap 437.56 Bn

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...

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 platforms that facilitate data integration and analysis. These platforms are deployed across various industries, including government, healthcare, finance, and manufacturing, in multiple countries and regions.

Revenue for Palantir is generated through the sale of its software platforms, which include Gotham, Foundry, Apollo, and Artificial Intelligence Platform (AIP). Gotham is a software platform that enables users to identify patterns hidden within datasets, making it an invaluable tool for organizations seeking insights from their data. Foundry, on the other hand, creates a central operating system for an organization's data, allowing for integration from multiple sources and providing a unified view. Apollo is a cloud-agnostic platform that manages the delivery of new features, security updates, and platform configurations, while AIP enables the integration of artificial intelligence with enterprise data.

Within the industry, Palantir competes with other software companies providing similar solutions and faces competition from internal software development efforts at potential customers. Palantir's competitive advantages lie in its platform capabilities and product functionality, data security and privacy, ease and speed of adoption, use, and deployment, product innovation, pricing and cost structures, customer experience, including support, and brand awareness and reputation.

The company's customer base consists primarily of large-scale organizations requiring complex software solutions to manage their data and operations. Palantir tailors its sales and marketing strategies to target these organizations and provide them with the necessary software solutions for success.

Palantir's brand names and trade names include Palantir, Gotham, Foundry, Apollo, and Artificial Intelligence Platform (AIP). These names are synonymous with the company's mission to integrate data, decisions, and operations at scale, offering organizations a unified view of their data and operations.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	53.84	2.56
EV to Cash from Ops.	240.37	38.32
EV to Debt	1,855.59	-11.37
EV to EBIT	392.90	-12.79
EV to EBITDA	493.64	7.72
EV to Free Cash Flow [EV/FCF]	243.55	24.22
EV to Market Cap	1.00	0.58
EV to Revenue	112.13	-35.00
Price to Book Value [P/B]	66.39	3.74
Price to Earnings [P/E]	399.47	-18.61

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	0.00	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-64.83	-404.11
Cash and Equivalents Growth (1y) %	110.22	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	129.84	31.15
EBITDA Growth (1y) %	115.90	49.02
EBIT Growth (1y) %	120.81	25.85
EBT Growth (1y) %	120.81	17.82
EPS Growth (1y) %	113.64	70.69
FCF Growth (1y) %	82.98	295.45
Gross Profit Growth (1y) %	46.69	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.48	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	1.37	1.21
Current Ratio	6.43	2.57
Debt to Equity Ratio	0.04	-0.93
Interest Cover Ratio	0.00	-13.15
Times Interest Earned	0.00	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	29.40	-544.82
EBIT Margin %	28.54	-197.78
EBT Margin %	28.54	-602.74
Gross Margin %	80.80	52.06
Net Profit Margin %	28.10	-605.52

Palantir Technologies Inc. (NASDAQ: PLTR)