Palantir Technologies Inc.PLTR
NMS • Technology
$186.03
P/E
147.61
PEG
0.66
FCF Yield
0.5%
Rev Growth YoY
+92.8% YoY
Gross Margin
84.7%
Health Score
8/10
D/E Ratio
—
Confidence
MEDIUM
Business Snapshot
Palantir Technologies is a software infrastructure company whose core products are data-integration and analytics platforms that let large organisations — governments and commercial enterprises — fuse disparate datasets and run AI-driven decision workflows on top of them. It operates in the enterprise software and AI platform market, positioning itself as a specialised analytics layer rather than a broad horizontal suite, which gives it a distinctive niche among large-scale data-operations vendors. At a $447.04B market cap it sits firmly in large-cap territory, with TTM revenue of $6.16B and TTM net income of $3.02B — a scale that reflects both a high-multiple growth profile and meaningful profitability. The defining characteristic is the combination of government-grade security clearances and deep customer embedding, which creates high switching costs and a durable moat once a platform is deployed inside an institution.
Financial Health
Gross margin stands at 84.7%, down modestly from 86.8% in the prior year, while net margin is a striking 49.0% — a level that signals exceptional pricing power and operating discipline. The balance sheet is effectively fortress-grade: debt/equity of 0.0x means essentially no leverage, and a current ratio of 7.23x provides enormous short-term liquidity headroom...
Risk Assessment
- VALUATION — P/E of 147.61x versus a sector average of 39.5x represents a ~3.7x premium that leaves little room for execution missteps.
- VALUATION — Price/Sales of 72.62x and Price/Book of 45.73x are extreme absolute multiples, pricing in sustained hyper-growth.
- VALUATION DIVERGENCE — The Python DCF estimate of $28.58 versus the current price of $186.03 implies a 551% premium, a gap wide enough to signal significant model uncertainty.
- INSIDER — 0 buys versus 7 sells over the last 90 days indicates net insider selling, a cautionary signal on management's own view of value.
- FCF / CASH BURN — FCF yield of 0.5% on $2.10B of free cash flow is very low, meaning investors are paying heavily for each dollar of cash generated.
- 52-WEEK POSITION — At $186.03 the price sits below the 52-week high of $212.94, roughly 12.6% off the peak, indicating the stock has pulled back from its highs.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Gross margin stands at 84.7%, down modestly from 86.8% in the prior year, while net margin is a striking 49.0% — a level that signals exceptional pricing power and operating discipline. The balance sheet is effectively fortress-grade: debt/equity of 0.0x means essentially no leverage, and a current ratio of 7.23x provides enormous short-term liquidity headroom. Free cash flow of $2.10B confirms the company is a genuine cash generator rather than a cash burner, though the FCF yield of just 0.5% reflects how richly the market values that cash stream relative to the $447.04B market cap. Return on equity of 38.1% reinforces that capital is being deployed efficiently. For an investor, the picture is one of low financial risk — ample capacity to reinvest in growth or return capital — with the main caveat being that the valuation, not the balance sheet, is where the risk resides.
- VALUATION — P/E of 147.61x versus a sector average of 39.5x represents a ~3.7x premium that leaves little room for execution missteps. - VALUATION — Price/Sales of 72.62x and Price/Book of 45.73x are extreme absolute multiples, pricing in sustained hyper-growth. - VALUATION DIVERGENCE — The Python DCF estimate of $28.58 versus the current price of $186.03 implies a 551% premium, a gap wide enough to signal significant model uncertainty. - INSIDER — 0 buys versus 7 sells over the last 90 days indicates net insider selling, a cautionary signal on management's own view of value. - FCF / CASH BURN — FCF yield of 0.5% on $2.10B of free cash flow is very low, meaning investors are paying heavily for each dollar of cash generated. - 52-WEEK POSITION — At $186.03 the price sits below the 52-week high of $212.94, roughly 12.6% off the peak, indicating the stock has pulled back from its highs. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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