COMPANY OVERVIEW:
Founded: 2003
Business Focus: Palantir Technologies specializes in data analytics, artificial intelligence (AI), and machine learning. Its primary platforms, Palantir Gotham and Palantir Foundry, enable organizations to integrate, manage, and analyze large datasets for enhanced decision-making.
KEY FINANCIAL METRICS:
Stock Price: $36.57
PE Ratio (TTM): 217.06
EPS (TTM): 0.17
Market Cap: $82.636B
Net Income: $404.55M
Total Revenue $2.479B
Gross Profit: $2.017B
Free Cash Flow: $696.41M
Working Capital: $3.393B
Return on Equity (ROE): 11.49%
Current Ratio: 5.92
Debt-to-Equity Ratio: 6.25%
FINANCIAL OVERVIEW:
Palantir has a high PE ratio of 217.06, indicating strong expectations for future growth despite a relatively low EPS of 0.17. The company holds substantial liquidity, with $4 billion in total cash and a current ratio of 5.92, demonstrating a healthy ability to meet short-term obligations.
With free cash flow of $696.41 million and net income of $404.55 million, Palantir is generating positive cash flow and profitability. The gross profit of $2.017 billion further highlights its solid revenue generation.
Palantir’s debt-to-equity ratio of 6.25% is low, indicating minimal reliance on debt financing. This, combined with its strong working capital, places the company in a stable financial position.
STOCK PERFORMANCE OUTLOOK:
Palantir’s premium valuation, indicated by its high PE ratio, suggests it is viewed as a high-growth stock. The company’s expanding government contracts and advancements in AI bolster its future growth potential. However, the high PE may also indicate overvaluation relative to its earnings, warranting careful investor consideration.
SWOT ANALYSIS:
Strengths:
Strong presence in government and defense sectors.
Positive free cash flow and profitability.
Low debt burden and strong liquidity.
Weaknesses:
High PE ratio, which can lead to volatility if growth expectations are not met.
Relatively low earnings compared to valuation.
Opportunities:
Expansion in healthcare and AI sectors.
Increased global demand for data analytics solutions.
Threats:
Competition in the AI and data analytics space.
Dependence on large government contracts, which could face policy changes.
Overall, Palantir is well-positioned for future growth but faces potential risks tied to its high valuation and reliance on key sectors like government and defense.
BUSINESS SEGMENTS:
Government: Strong partnerships with agencies like the U.S. Department of Defense and CIA, providing AI-driven solutions for intelligence and defense operations.
Commercial: Expanding into industries like finance and healthcare, offering tools for operational optimization and data-driven insights.
KEY COLLABORATIONS:
Enhanced AI capabilities in healthcare through strategic partnerships.
New defense contracts strengthening its role in government projects.
Increased commercial collaborations with Fortune 500 companies for business intelligence solutions.
Strategic Vision: Palantir aims to be a leader in data analytics, leveraging advanced technologies to empower organizations across sectors in their decision-making processes while maintaining a strong presence in government services.
Founded: 2003
Business Focus: Palantir Technologies specializes in data analytics, artificial intelligence (AI), and machine learning. Its primary platforms, Palantir Gotham and Palantir Foundry, enable organizations to integrate, manage, and analyze large datasets for enhanced decision-making.
KEY FINANCIAL METRICS:
Stock Price: $36.57
PE Ratio (TTM): 217.06
EPS (TTM): 0.17
Market Cap: $82.636B
Net Income: $404.55M
Total Revenue $2.479B
Gross Profit: $2.017B
Free Cash Flow: $696.41M
Working Capital: $3.393B
Return on Equity (ROE): 11.49%
Current Ratio: 5.92
Debt-to-Equity Ratio: 6.25%
FINANCIAL OVERVIEW:
Palantir has a high PE ratio of 217.06, indicating strong expectations for future growth despite a relatively low EPS of 0.17. The company holds substantial liquidity, with $4 billion in total cash and a current ratio of 5.92, demonstrating a healthy ability to meet short-term obligations.
With free cash flow of $696.41 million and net income of $404.55 million, Palantir is generating positive cash flow and profitability. The gross profit of $2.017 billion further highlights its solid revenue generation.
Palantir’s debt-to-equity ratio of 6.25% is low, indicating minimal reliance on debt financing. This, combined with its strong working capital, places the company in a stable financial position.
STOCK PERFORMANCE OUTLOOK:
Palantir’s premium valuation, indicated by its high PE ratio, suggests it is viewed as a high-growth stock. The company’s expanding government contracts and advancements in AI bolster its future growth potential. However, the high PE may also indicate overvaluation relative to its earnings, warranting careful investor consideration.
SWOT ANALYSIS:
Strengths:
Strong presence in government and defense sectors.
Positive free cash flow and profitability.
Low debt burden and strong liquidity.
Weaknesses:
High PE ratio, which can lead to volatility if growth expectations are not met.
Relatively low earnings compared to valuation.
Opportunities:
Expansion in healthcare and AI sectors.
Increased global demand for data analytics solutions.
Threats:
Competition in the AI and data analytics space.
Dependence on large government contracts, which could face policy changes.
Overall, Palantir is well-positioned for future growth but faces potential risks tied to its high valuation and reliance on key sectors like government and defense.
BUSINESS SEGMENTS:
Government: Strong partnerships with agencies like the U.S. Department of Defense and CIA, providing AI-driven solutions for intelligence and defense operations.
Commercial: Expanding into industries like finance and healthcare, offering tools for operational optimization and data-driven insights.
KEY COLLABORATIONS:
Enhanced AI capabilities in healthcare through strategic partnerships.
New defense contracts strengthening its role in government projects.
Increased commercial collaborations with Fortune 500 companies for business intelligence solutions.
Strategic Vision: Palantir aims to be a leader in data analytics, leveraging advanced technologies to empower organizations across sectors in their decision-making processes while maintaining a strong presence in government services.