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PLTR

Palantir Technologies NYSE:PLTR Stock Report

Last Price

US$7.53

Market Cap

US$15.5b

7D

-4.2%

1Y

-72.6%

Updated

26 Sep, 2022

Data

Company Financials +
PLTR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

PLTR Stock Overview

Palantir Technologies Inc. builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.

Palantir Technologies Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Palantir Technologies
Historical stock prices
Current Share PriceUS$7.53
52 Week HighUS$28.38
52 Week LowUS$6.44
Beta0
1 Month Change-5.16%
3 Month Change-19.12%
1 Year Change-72.59%
3 Year Changen/a
5 Year Changen/a
Change since IPO-20.74%

Recent News & Updates

Sep 26

Palantir secures $95.9M contract to support Homeland Security Investigations

Palantir Technologies (NYSE:PLTR) said on Monday that the Department of Homeland Security renewed its contract to support Homeland Security Investigations with Investigative Case Management  software. The contract is worth $95.9M over a five-year period. HSI selected Palantir’s software for speed of delivery as well as the platform’s leading edge access controls and data protections to enforce critical security and privacy standards. PLTR shares are down 1.08% pre-market. Shares tumbled in early Aug after the data software company posted second-quarter results and offered full-year sales guidance that fell short of Wall Street's expectations. Read a recent bullish analysis on stock by SA contributor Rumak Research: Deeply Oversold At Current Market Prices.

Sep 19

Palantir: Expansion Into Space Is A Game Changer

Summary The market underestimates Palantir’s ability to create additional shareholder value in the long run. There’s an indication that Palantir’s geospatial intelligence capabilities along with its abilities to create custom AI solutions will continue to attract new clients from the public and private sectors. With geopolitical tensions on the rise, Palantir appears to be a good investment to hedge yourself against global uncertainty and minimize your downside. As markets tank due to the worsening macroeconomic environment, there are companies that once again trade at significant discounts to their fair value and have an opportunity to appreciate and create additional shareholder value once the dust settles. One such company is Palantir (PLTR). As enterprises try to optimize their business processes to weather the upcoming economic crisis, while governments increase their defense spending budgets due to the changing geopolitical landscape, it becomes safe to assume that the demand for organized data on which stakeholders could act to create a meaningful impact is only going to increase. Palantir is able to address this need. While in the past I have already covered various solutions that the company provides, this article aims at highlighting Palantir's capabilities in space, which are less covered and are underestimated by the market, but which could also be one of the main growth drivers of the company in the future. Additional Eyes In The Sky To enhance the capabilities of its AI-based solutions, Palantir has been actively exploring ways to enter the space domain by buying an equity stake in the satellite imagery company BlackSky (BKSY) last year and also partnering with Satellogic (SATL) to launch satellites into the orbit. By having additional eyes in the sky, Palantir has the ability to provide time-sensitive solutions to clients that rely on geospatial intelligence to achieve their goals. Thanks to both of those initiatives, Palantir was able to deploy various products that run on the Edge AI platform and help clients detect various objects or discover multiple patterns that are happening on Earth in real-time. What's also important to note is that Palantir doesn't rely on one particular satellite, as it has the ability to use the constellation of satellites to meet the needs of its clients at any time. Going forward, the space domain will play a more important role both for the private and public sectors, as having the capabilities to analyze everything that's happening on the Earth could be crucial for Palantir's clients, who are looking for time-sensitive solutions that could impact their decision-making process. That's why commercial satellite imagery services have been constantly added to the various security packages that the U.S. Department of Defense provided to Ukraine since the beginning of the Russian invasion in February, as they help Ukraine to locate Russian troops on Ukrainian soil, strike the adversary arms depots and better prepare their counteroffensives. On top of that, recently a popular Ukrainian charity has launched a crowdfunding campaign to buy its own satellite along with access to the constellation of other satellites, which were later transferred to Ukraine's Ministry of Defense, in order to help the Ukrainian Armed Forces to have additional eyes in the sky. Considering the increased importance of geospatial intelligence, Palantir has been winning multi-million dollar awards from the U.S. Space System Command to develop solutions that would help the agency to have greater cross-space situational awareness. At the same time, earlier this year, Pentagon's National Reconnaissance Office awarded its largest-ever contracts to various commercial satellite imagery companies due to the rising demand for geospatial intelligence mostly thanks to the successful impact of satellite imagery in the ongoing Russo-Ukrainian war. One of the main beneficiaries of those contracts is BlackSky in which Palantir has an equity stake. As a result of all of this, Palantir now has the opportunity to increase its client base and create an additional shareholder value at the same time as its capabilities in space improve, while the geospatial analytics market alone is forecasted to grow at a CAGR of 13% and worth $209.47 billion by 2030. What's The Fair Value Of The Business In The Current Environment? Given the improvement of Palantir's space capabilities along with the fact that the demand for satellite imagery services is increasing, it's safe to assume that the company has additional room for growth, especially since it generated only $1.54 billion in revenues in 2021, while the geospatial intelligence market alone could be worth over $200 billion by 2030. To find out the intrinsic value of the business in the current environment, I created a DCF model in which revenues estimates for FY22 are in-line the management estimates, while in the following years the revenue growth is only 25%, below the company's initial growth target of at least 30% by 2025. The EBIT in the model is improving with each year mostly thanks to the decrease in stock-based compensations, which were broadly discussed in my latest article on the company where the latest earnings results were highlighted. The WACC in the model stands at 8%, while the terminal growth rate is 3%. Palantir's DCF Model (Historical Data: Seeking Alpha, Assumptions: Author) My calculations show that the fair value of Palantir right now is $10.03 per share, which represents an upside of nearly 30% from the current levels. However, this is rather a conservative estimate, as Palantir is still a growth company that is able to show double-digit top-line returns in the current environment after being in the business for nearly two decades. At the same time, there's a possibility that the growth rate itself will increase in the future due to the continuous increase of demand for AI-based software solutions that the company provides, which would increase its intrinsic value in the end. Palantir's DCF Model (Historical Data: Seeking Alpha, Assumptions: Author) Risks The most obvious risk to the bullish thesis is a global recession, which will likely negatively affect Palantir's growth and could push its stock to even lower levels. The company has likely already failed to reach its initial revenue growth target of 30% this year, as the updated guidance shows that the management expects the company to generate ~$1.9 billion in the base case scenario, which represents a revenue growth rate of only ~23.5%. However, the good news is that there's an indication that Palantir has accelerated hiring, which is a sign that things are not as bad as the market thinks, and in the end, the top-line growth rate could be greater than expected in the following quarters.

Sep 12

Palantir: Undervalued Stock, But Perspective And Patience Are Required

Summary Investors are frustrated with Palantir’s first half of 2022 results but are forgetting some key metrics that indicate the market is overreacting and growth is ahead for the stock. Palantir is oversold and undervalued, with a much lower price-to-sales ratio and price-to-free cash flow than its competitors. Leadership has estimated profitability will not be reached until 2025, yet Palantir could be profitable much sooner if government revenue regains growth and SBC continues to decrease. The bleeding losses of operating income from previous SPAC investments are almost over. Palantir’s leadership team is determined to grow their business their way and on their own time horizon. Investors must understand this and stay patient. Thesis: Palantir Technologies Inc. (NYSE:PLTR) is an undervalued software stock especially compared to its competition. It has become oversold this past month, losing nearly 22% of its share price in the last month. What's interesting is a lot of the selling is coming from retail investors, of which shareholder count has dropped 8% year-over-year, but institutions have increased their holdings by nearly 10% in the same time frame. I believe the reason for this is that the institutions understand how significantly undervalued the company is, how strong their balance sheet is, and are demonstrating consistently high commercial customer growth rates. DCF from Simply Wall St. What are the Bears and Bulls Saying About Palantir Stock? Bears Feel Really Smart Right Now Palantir bears are feeling good right about now, and it is easy to see why. Palantir has been publicly traded for almost two years, and it is 26% lower in share price than the day of its DPO. Palantir bears' main thesis typically is around the company diluting shareholders, which has so far been true, with shareholders being diluted over 28% since the company went DPO. The other two main bear theses that surround Palantir are: Palantir is a consulting company and most of their revenue is government-dependent. We will discuss further how this may be perceived but is incorrect. The company is overvalued, not profitable, and now missing their 30% sales growth forecast. The stock does still have bears that are extremely short on the company with the short interest of the stock at nearly 7%. Bulls are Getting Impatient, Frustrated with Earnings, Concerned About Thesis Palantir bulls rightfully are frustrated with the company's latest earnings results and are concerned about the stock reaching their initial long-term expectations. This company had retail investors screaming from the rooftops that this is a trillion-dollar market cap stock in the making. Palantir has a very large retail investor following totaling nearly 52% of all shares, and this group of investors has been very vocal on their feelings of disappointment and concern. All you have to do is search for Palantir articles on Seeking Alpha, check the Reddit boards, type $PLTR in Twitter, or watch the hundreds of videos posted on YouTube about the stock. Now in full transparency, I am a retail investor of Palantir, and this is my number one stock holding. I too have a YouTube Channel and podcast on investing, and over 45 videos on the stock, as I am very bullish on the stock. However, I am very objective in my perspective on this company and am aware of the risks and rewards it could present. My time horizon for this stock is at least 10 to 20yrs, as long as my thesis is intact. Once a thesis is broken, I have to truly reconsider my position in a stock and if it is time to get out. I will share my fair criticisms and risks surrounding this stock but also, why the stock is undervalued at the moment and requires patience and perspective to reap the rewards I believe it will deliver. How Much Risk Does Palantir Stock Present? The definition of risk is to have something valued that is exposed to danger, harm, or loss. If Palantir was your only stock that you held in your portfolio, I would agree you have a lot of risk in this stock. However, if you have a well-diversified portfolio, a time horizon longer than five years, and just want to beat the market average in those five-plus years, then there is limited risk in Palantir in my opinion. Palantir is a stock not for short-term shareholders, nor one for the faint of heart, as it is very volatile, and not for investors who cannot get over the management style of the company. This stock holds a beta of 1.82, meaning when Palantir's stock fluctuates up or down it is almost 2x the size of what the market average is. This reason, and the lack of profitability Palantir has currently, is why institutional investor holdings are not over 50% just yet. It is also the reason the retail investing community has gotten frustrated from the whiplash their shares have taken. The risks are different for every investor when it comes to Palantir or any stock because everyone's situation is unique. Therefore, it is important to know yourself as an investor why you are investing, understand your risk-tolerance, and when you need the money. If you have patience, can dollar-cost average during a long-term horizon, understand the nature of Palantir's customers, and business model, then you will not consider it risky to be a Palantir shareholder. I believe the Institutional Investor Community is understanding these things more and more, and as a result, the number of institutional shares held since December 2020 has increased over 3.5x! Institutional Holdings from Fintel.io The Ugly Let me begin by saying I was disappointed by the Q2 2022 earnings results, considering the revenue they achieved was what they said their base case was for Q2 expectations during Q1. Palantir also made this their third quarter in a row missing analysts' expectations on earnings. I don't care who you are in the stock market, three misses in a row never provide analysts or investors additional confidence in your company. I also was not a fan of how leadership conducted themselves on the earnings call, getting short with those asking questions and sharing that some of their customers do not even like them but must use them because their product is that good. It is one thing to be overly confident or even slightly arrogant on an earnings call if you are exceeding all expectations, but it is a totally different one when performance has been consistently declining in different areas. Management dropped their commitment for 30% annual growth in 2022 and dropped a bomb on investors when CEO Alex Karp said 2025 is when the company will reach profitability. The company is growing their government revenue 13% year-over-year, but this metric has decreased five quarters in a row, leaving much concern for investors. Palantir also had to take a loss of over $135M for their losses from their SPAC investments. The sequential decline in stock-based compensation was only 2% less than the previous quarter and was $145.7M. Palantir had a net loss of $179.3M for their Q2 2022 performance, because of all these factors and due to significant government revenue pushing out due to timing of government budgets and deal cycles. It is All About Perspective, Patience, and Expectations I believe the short-term expectations of Palantir stock have been over-zealous from myself, other retail investors, and institutional investors. In my opinion, there are several reasons expectations got out of hand quickly, and perspective was lost. Here are the main reasons listed below: The amazing capabilities of Palantir's software and outcomes it has proven already in the government sector. The wild success this non-government entity had selling to the U.S. and other western allied governments for nearly 17 years before coming public.

Sep 06

3 Reasons To Buy Palantir Today For Long-Term Alpha

Summary PLTR's stock has gotten obliterated from its all-time highs and now trades below its direct listing price. That said, we remain confident in the long-term thesis. We share three reasons why buying right now could generate long-term alpha. Palantir Technologies (PLTR) stock shot up like a rocket after its direct listing, becoming one of the hottest and most popular stocks on Wall Street at the time, even developing a cult-like following with numerous YouTube channels and blogs dedicated to following the company: PLTR data by YCharts Since then, however, the stock has dropped like a rock, now trading below its direct listing price. PLTR data by YCharts Between general market bearishness, an epic collapse in high-growth speculative tech stocks, exceedingly high stock-based compensation for company insiders, and disappointing recent quarterly numbers from PLTR, the market's obsession with PLTR stock has seemingly vanished. That said, the core investment thesis for the company remains intact, and the long-term potential remains enormous. It is when market pessimism is at its peak that the best buys are made. In this article, we will discuss three reasons why we still believe that PLTR could generate significant alpha for investors over the long term, especially from the currently suppressed share price. #1. PLTR's total addressable market is very large and continues to grow rapidly When it went public, PLTR estimated that its total addressable market was ~$120 billion, and since then it has continued to grow both organically and inorganically. This provides the company with a very long growth runway, which means it could potentially compound shareholder wealth over a long period of time as it continues to innovate and create new products to meet the insatiable government and corporate demand for data analytics and artificial intelligence software. PLTR's organic total addressable market growth is simply the result of the rapid growth in the global big data industry, a segment of the economy that is expected to grow at a ~20% CAGR through 2030. Analysts expect PLTR's total addressable market to reach $230 billion by 2025 and a 20% CAGR in global big data would put PLTR's total addressable market at ~$600 billion by the end of 2030. Meanwhile, PLTR's inorganic total addressable market growth is being fueled by its innovations to bring new products to market and make its existing platforms affordable and usable by a greater audience of potential clients. This expansion was clearly illustrated in PLTR's Q2 investor presentation: PLTR TAM Growth (Q2 Investor Presentation) This has resulted in numerous new innovations since going public, including Edge AI, HyperAuto, Cosmos, MetaConstellation, and Apollo for customers' SaaS. PLTR Innovations (Q2 Investor Presentation) Given that the current expectation is that PLTR will generate $4.1 billion in 2025 (less than 2% of its expected total addressable market), the vastness of PLTR's growth runway is clear. Given its aggressive innovative pace and ability to attract top industry talent, there is good reason to be bullish on its ability to sustain high revenue growth rates for many years to come. #2. PLTR's Gotham business has a wide moat and has a major long-term growth catalyst PLTR's Gotham (i.e., government) business is another reason we really like PLTR. There are two main reasons why we believe this business truly has a wonderful long-term outlook: 1. It is positioned to become the sixth prime defense contractor with the U.S. government and its first software prime contractor. As management stated on a recent earnings call: Our ambition is to be the sixth prime contractor for the U.S. Federal Government, a trusted partner to deliver complex end-to-end integrated hardware and software solutions, building on the legacy of programs that we prime today. But we seek to be the first company to do this as a software prime, using software innovation and our unmatched expertise to deliver new integrated hardware software capabilities faster than the pace of conflict. This highlights the wide moat that they have built in their U.S. government business, establishing themselves as the go-to firm for data analytics and artificial intelligence software expertise whenever a department has a no-fail mission and/or platform that they are looking to execute/enhance. This reputation has come about as a combination of decades of successful relationship building and collaboration on previous high-stakes missions and Gotham's proven capabilities. Furthermore, PLTR's strong commitment to continuous innovation gives the U.S. Government confidence that they are betting on a winning horse that will be able to help them stay a step ahead of current and potential future adversaries in the new A.I.-powered defense applications arms race. 2. This leads us to another reason why we are highly bullish on Gotham's long-term outlook: it has a very strong demand catalyst in China's rise and, in particular, its obsession with winning the artificial intelligence race with the United States. The reason why this is such a lucrative catalyst for PLTR is because - as history has proven for other defense contractor primes like General Dynamics (GD) and Raytheon (RTX) - government contracts for mission-critical platforms and systems are budget-driven, not profit-driven. In other words, the higher priority of a system, the more the government will be happy to pay for it, even if it leads to wildly high profit margins for the defense contractor. Given the increasing prominence of A.I.-powered defense technologies in national security and PLTR's increasingly dominant position among potential vendors, this bodes very well not only for continued revenue growth for Gotham, but also profit margin growth. Some bears point to the fact that this theory is already springing leaks and taking on considerable water given that the U.S. Government business saw its growth decelerate to a 27% revenue growth rate in Q2. If government growth continues to decelerate (as it has for the past four quarters), PLTR's long-term intrinsic value will likely be quite disappointing. However, the reality is that PLTR still only has a small percentage of its U.S. government's total addressable market and management remains highly bullish on its long-term growth trajectory. As it pointed out on the earnings call: PLTR believes that the heightened geopolitical tensions today relative to other times in its history mean that demand should accelerate moving forward. Furthermore, CEO Alex Karp elaborated on the nature of contract winning and revenue growth in the government business on the Q2 earnings call, stating:

Aug 30

Can Palantir Be Profitable By 2025?

Summary Palantir’s growth strategy remains unchanged, despite its recent growth slowdown. The company's management has a long-term view and is taking the right steps to make the company profitable over the next three years. If execution goes well over the medium term, its shares have a lot of upside potential even considering a depressed valuation. Palantir Technologies (PLTR) is not immune to economic cycles and its business momentum has decelerated recently, but its fundamentals remain good and is likely to report a positive bottom-line by 2025. Background As I’ve covered several times in previous articles, I’m bullish on Palantir over the long term as I think the upside potential is quite attractive, as the company executes on its growth strategy and becomes a much larger company over the next few years. Despite that, the last few months have been quite negative for ‘growth’ companies, and Palantir has been no exception. Its share price has declined by more than 55% since the beginning of the year, as the market has been quite punitive for unprofitable companies. As an early growth company, Palantir’s investment case is still somewhat speculative and one of its weakest investment factors is profitability, being a key reason, in my opinion, for its share price weakness in recent months. Moreover, due to the current economic slowdown, Palantir’s growth and profitability have been hurt lately, which has punished its share price even further. Despite that, Palantir has recently said that it maintains its growth strategy and that it's not focused on improving margins in the short term, continuing to focus on managing the business with a long-term mentality. I think that achieving profitability, on a GAAP basis, will be key for a higher valuation over the medium term as the company would no longer be considered ‘speculative’, being more important for its investment case than short term cycles. While in the next few months the market will look mainly at the company’s prospects over the coming quarters, for long-term investors I think it is much more important to look at the big picture and not worry too much about quarter to quarter earnings. As Palantir’s CEO said during the last earnings conference call, management expects the company to become profitable by 2025, which would certainly be a great milestone and a key reason for a higher valuation. Therefore, in this article I analyze Palantir’s fundamentals over the next few years, to see if its claim of being a profitable company by 2025 has some merit, or if management is using that argument to distract investors from short-term woes. Profitability Analysis of Palantir On the revenue side, Palantir’s medium-term goal is to grow its annual revenues by about 30% per year, a slower growth rate than it has achieved over the past three years. From 2019-2021, Palantir’s revenues increased from just $743 million to more than $1.5 billion last year, representing an annual growth rate, on average, of about 37%. This growth was supported both from its government and commercial businesses, but more recently the commercial segment has been the company’s major growth engine and is expected to become its largest segment in the near future. Indeed, some 44% of its revenues were generated in the commercial segment in the last quarter, a weight that is expected to gradually increase considering that revenue growth has been higher in the commercial segment (+46% YoY in Q2 2022) compared to governments (+13% YoY) in recent quarters and this trend is not expected to reverse soon. Overall revenue growth has been supported mainly by a higher customer count, which increased to more than 300 at the end of last quarter (of which 203 are in the commercial business) and represented an increase of 80% YoY, a trend that is expected to remain strong over the coming years. Customer count (Palantir) Strong revenue growth in the recent past and a growing customer base are strong signs that Palantir’s growth strategy is progressing well, even though it may be challenging in the current macroeconomic environment to achieve its annual revenue growth of about 30%. In fact, Palantir’s guidance is to reach annual revenue of around $1.9 billion in 2022, which is an increase of 23% compared to the previous year. Over the next three years, revenue growth is expected to be around 28% per year and reach some $4 billion in revenue by 2025. However, this represents annual growth of 35% YoY in 2025, which may be hard to achieve, and assuming a more conservative approach I estimate that Palantir generates $3.8 billion in revenue by 2025, representing a CAGR of 26% during 2023-25. Annual revenue (Palantir and Bloomberg) To achieve higher revenues, particularly in the commercial business, Palantir’s strategy was to create a sales team, something that it didn’t have just a couple of years ago. Despite the recent slowdown in its business, Palantir continues to add salespeople, while other technology companies are freezing hires or reducing employees to cut costs, showing that Palantir continues focused on the company’s growth over the medium term rather than trying to beat market estimates in the next quarter. As revenue is growing slower in recent quarters than the company was expecting, this strategy is negative for Palantir’s profitability, but is necessary over the medium to long term to grow the business. Palantir is expected to increase its headcount by about 25% during 2022, reaching around 3,700 employees by year end, compared to some 2,920 at the end of 2021. What this means is that staff costs are expected to increase significantly in the short term, and probably at a higher rate than revenue, at least until the company reaches its desired scale and starts to reap the benefits of economies of scale. Even though this will put pressure on the company’s business margins in the next few quarters, as Palantir’s business gains scale it will become easier to reach GAAP profitability, while it will likely take at least a few more years. Palantir’s gross margin has been quite stable at around 80% over the past few years, thus as revenue increases its gross profit will be higher, which will gradually allow it to finance research & development expenses, a higher headcount and general expenses. In 2021, its gross profit amounted to $1.2 billion (margin of 82% excluding stock-based compensation), and this margin is not expected to change much in coming years, which means Palantir’s gross profit should increase to about $3.1 billion by 2025, on revenue of $3.8 billion. Gross margin (Palantir) This is a strong increase in gross profit over the next three years, but as Palantir continues to invest in business growth, staff and marketing expenses are expected to increase significantly in the next few years, plus stock-based compensation is also expected to remain a drag on GAAP profitability for some time. As Palantir continues to invest in its software platform and improves its products, R&D expenses should continue to increase, but their weight is expected to gradually decline over the next few years. In 2021, R&D expenses increased by $34 million compared to 2020 to $237 million, and I expect similar increases in the following years of about $30 million per year, which means that Palantir’s R&D expenses should be around $350 million by 2025, and represent 9.2% of revenue (vs. 15.4% in 2021). General expenses have not increased much in 2021 (0.7% YoY), but to be conservative I expect annual growth of about 14% from 2022-25, which means that general expenses should increase from $295 million in 2021 to about $500 million by 2025, representing some 13% of revenue compared to 19% in 2021. Where I’m expecting much higher cost growth is regarding sales & marketing, which I expect to grow at a higher rate than revenue. This assumption may be much too conservative, but as Palantir is building its sales team and there isn’t much track record on its efficiency and capacity to leverage existing customers into increasing retention, I estimate that sales & marketing costs will increase at about 31% per year, over the next three years. Therefore, these costs should increase from $372 million in 2021 (24% of revenues) to about $1.1 billion by 2025 (29% of revenue).

Shareholder Returns

PLTRUS SoftwareUS Market
7D-4.2%-4.9%-6.9%
1Y-72.6%-34.3%-23.7%

Return vs Industry: PLTR underperformed the US Software industry which returned -35.4% over the past year.

Return vs Market: PLTR underperformed the US Market which returned -23% over the past year.

Price Volatility

Is PLTR's price volatile compared to industry and market?
PLTR volatility
PLTR Average Weekly Movement8.9%
Software Industry Average Movement9.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: PLTR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: PLTR's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20033,269Alex Karphttps://www.palantir.com

Palantir Technologies Inc. builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations. The company provides palantir gotham, a software platform which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform. It also offers palantir foundry, a platform that transforms the ways organizations operate by creating a central operating system for their data; and allows individual users to integrate and analyze the data they need in one place.

Palantir Technologies Fundamentals Summary

How do Palantir Technologies's earnings and revenue compare to its market cap?
PLTR fundamental statistics
Market CapUS$15.54b
Earnings (TTM)-US$539.03m
Revenue (TTM)US$1.74b

8.9x

P/S Ratio

-28.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PLTR income statement (TTM)
RevenueUS$1.74b
Cost of RevenueUS$370.99m
Gross ProfitUS$1.37b
Other ExpensesUS$1.91b
Earnings-US$539.03m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.26
Gross Margin78.73%
Net Profit Margin-30.90%
Debt/Equity Ratio0%

How did PLTR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is PLTR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PLTR?

Other financial metrics that can be useful for relative valuation.

PLTR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.6x
Enterprise Value/EBITDA-61.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does PLTR's PS Ratio compare to its peers?

PLTR PS Ratio vs Peers
The above table shows the PS ratio for PLTR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average15.5x
AZPN Aspen Technology
29.6x29.7%US$14.3b
TYL Tyler Technologies
7.8x9.4%US$14.3b
SPLK Splunk
4.3x16.6%US$12.9b
BILL Bill.com Holdings
20.3x23.1%US$13.0b
PLTR Palantir Technologies
8.9x22.3%US$15.5b

Price-To-Sales vs Peers: PLTR is good value based on its Price-To-Sales Ratio (8.9x) compared to the peer average (15.5x).


Price to Earnings Ratio vs Industry

How does PLTR's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: PLTR is expensive based on its Price-To-Sales Ratio (8.9x) compared to the US Software industry average (4.3x)


Price to Sales Ratio vs Fair Ratio

What is PLTR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PLTR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio8.9x
Fair PS Ratio14x

Price-To-Sales vs Fair Ratio: PLTR is good value based on its Price-To-Sales Ratio (8.9x) compared to the estimated Fair Price-To-Sales Ratio (14x).


Share Price vs Fair Value

What is the Fair Price of PLTR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PLTR ($7.53) is trading below our estimate of fair value ($25.35)

Significantly Below Fair Value: PLTR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Palantir Technologies forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


69.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PLTR is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PLTR is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PLTR is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PLTR's revenue (22.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: PLTR's revenue (22.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PLTR is forecast to be unprofitable in 3 years.


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Past Performance

How has Palantir Technologies performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-0.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PLTR is currently unprofitable.

Growing Profit Margin: PLTR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PLTR is unprofitable, and losses have increased over the past 5 years at a rate of 0.2% per year.

Accelerating Growth: Unable to compare PLTR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PLTR is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.3%).


Return on Equity

High ROE: PLTR has a negative Return on Equity (-22.95%), as it is currently unprofitable.


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Financial Health

How is Palantir Technologies's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PLTR's short term assets ($2.9B) exceed its short term liabilities ($665.7M).

Long Term Liabilities: PLTR's short term assets ($2.9B) exceed its long term liabilities ($267.8M).


Debt to Equity History and Analysis

Debt Level: PLTR is debt free.

Reducing Debt: PLTR had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable PLTR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PLTR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 84.2% per year.


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Dividend

What is Palantir Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Palantir Technologies Dividend Yield vs Market
How does Palantir Technologies dividend yield compare to the market?
SegmentDividend Yield
Company (Palantir Technologies)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Software)1.1%
Analyst forecast in 3 Years (Palantir Technologies)0%

Notable Dividend: Unable to evaluate PLTR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PLTR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PLTR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PLTR's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PLTR has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Alex Karp (55 yo)

19.67yrs

Tenure

US$4,483,614

Compensation

Dr. Alexander C. Karp, also known as Alex, Co-Founded Palantir Technologies, Inc. in 2003 and serves as its Chief Executive Officer and Director since 2003. He was President at Palantir Technologies Inc. D...


CEO Compensation Analysis

Alex Karp's Compensation vs Palantir Technologies Earnings
How has Alex Karp's remuneration changed compared to Palantir Technologies's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-US$539m

Mar 31 2022n/an/a

-US$498m

Dec 31 2021US$4mUS$1m

-US$520m

Sep 30 2021n/an/a

-US$513m

Jun 30 2021n/an/a

-US$1b

Mar 31 2021n/an/a

-US$1b

Dec 31 2020US$1bUS$1m

-US$1b

Sep 30 2020n/an/a

-US$1b

Jun 30 2020n/an/a

-US$472m

Mar 31 2020n/an/a

-US$502m

Dec 31 2019US$12mUS$902k

-US$588m

Compensation vs Market: Alex's total compensation ($USD4.48M) is below average for companies of similar size in the US market ($USD13.05M).

Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PLTR's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: PLTR's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:PLTR Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
11 Nov 21SellUS$571,420Spencer RascoffIndividual25,000US$22.86

Ownership Breakdown

What is the ownership structure of PLTR?
Owner TypeNumber of SharesOwnership Percentage
State or Government765,2940.04%
Public Companies81,626,8814.0%
Individual Insiders219,893,88410.7%
Institutions689,170,95633.4%
General Public1,072,705,18052.0%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.


Top Shareholders

Top 25 shareholders own 37.97% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
7.72%
The Vanguard Group, Inc.
159,406,670$1.2b2.18%0.03%
7.05%
Peter Thiel
145,603,955$1.1b5.24%no data
4.43%
BlackRock, Inc.
91,443,147$688.6m5.16%0.02%
3.95%
Sompo Holdings, Inc.
81,626,881$614.7m0%no data
2.56%
Alexander Karp
52,740,043$397.1m0%no data
1.66%
State Street Global Advisors, Inc.
34,217,499$257.7m-0.21%0.01%
1.37%
Renaissance Technologies LLC
28,204,147$212.4m125.37%0.26%
1.01%
Geode Capital Management, LLC
20,751,665$156.3m2.03%0.02%
0.87%
Mithril Capital Management LLC
17,861,224$134.5m0%no data
0.72%
Norges Bank Investment Management
14,780,767$111.3m0%0.01%
0.62%
CPP Investments
12,699,154$95.6m0.35%0.09%
0.58%
Stephen Cohen
11,935,555$89.9m2.75%no data
0.51%
Morgan Stanley, Investment Banking and Brokerage Investments
10,568,078$79.6m-22.78%0.02%
0.51%
Northern Trust Global Investments
10,555,962$79.5m0.93%0.02%
0.49%
Legal & General Investment Management Limited
10,031,568$75.5m8.69%0.02%
0.48%
UBS Asset Management
9,830,145$74.0m-6.94%0.01%
0.47%
Goldman Sachs Group, Investment Banking and Securities Investments
9,605,725$72.3m38.72%0.05%
0.43%
Primavera Capital Group
8,787,385$66.2m0%5.95%
0.42%
D. E. Shaw & Co., L.P.
8,687,189$65.4m29594.72%0.12%
0.38%
Clarium Capital Management LLC
7,818,526$58.9m0%100%
0.37%
Susquehanna International Group, LLP, Asset Management Arm
7,593,049$57.2m-33.34%0.13%
0.36%
Champlain Investment Partners, LLC
7,459,495$56.2m0%0.37%
0.35%
Thiel Capital
7,255,295$54.6m0%no data
0.35%
Citadel Advisors LLC
7,171,118$54.0m-16.15%0.08%
0.34%
Swiss National Bank, Asset Management Arm
7,113,300$53.6m1.34%0.03%

Company Information

Palantir Technologies Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Palantir Technologies Inc.
  • Ticker: PLTR
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$15.543b
  • Shares outstanding: 2.06b
  • Website: https://www.palantir.com

Number of Employees


Location

  • Palantir Technologies Inc.
  • 1555 Blake Street
  • Suite 250
  • Denver
  • Colorado
  • 80202
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PLTRWBAG (Wiener Boerse AG)YesClass A SharesATEURSep 2020
PLTRNYSE (New York Stock Exchange)YesClass A SharesUSUSDSep 2020
PTXDB (Deutsche Boerse AG)YesClass A SharesDEEURSep 2020
PTXXTRA (XETRA Trading Platform)YesClass A SharesDEEURSep 2020
PLTR *BMV (Bolsa Mexicana de Valores)YesClass A SharesMXMXNSep 2020
PTXBUL (Bulgaria Stock Exchange)YesClass A SharesBGEURSep 2020
P2LT34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 3 REPR 1 COM USD0.001 CLASS ABRBRLAug 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/26 00:00
End of Day Share Price2022/09/26 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.