Palantir Technologies Inc.PLTR
NMS • Technology
$134.85
P/E
140.40
PEG
0.46
FCF Yield
0.6%
Rev Growth YoY
+84.7% YoY
Gross Margin
86.8%
Health Score
9/10
D/E Ratio
—
Confidence
MEDIUM
Business Snapshot
Palantir Technologies operates in the software infrastructure industry, providing data analytics platforms primarily to government and commercial clients through its Foundry and Gotham products. The company competes as a dominant player in the government data analytics space and is expanding its commercial footprint. At a market capitalisation of $323.28B, it is a large-cap stock with TTM revenue of $5.22B. A defining characteristic is its high-margin, asset-light business model with gross margins above 86%, allowing it to scale revenue with relatively low incremental capital costs.
Financial Health
Gross margin stands at 86.8%, up from 84.6% in the prior year, while net margin reached 43.7% — both reflect a highly profitable business model. The balance sheet is extremely conservative with a debt/equity ratio of 0.0x and a current ratio of 6.91x, signalling exceptional short-term liquidity and no leverage risk...
Risk Assessment
- VALUATION — P/E of 140.4x is 3.7x the sector average of 38.4x, requiring extremely optimistic growth expectations to be sustained.
- VALUATION DIVERGENCE — The Python DCF estimate of $29.85 suggests the stock trades at a 352% premium to modelled intrinsic value, with no FMP DCF available for cross-reference.
- INSIDER — Over the last 90 days, there were 0 insider buys vs 8 insider sells, a signal of insider caution.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — FCF yield of 0.6% is extremely low, indicating the market is pricing $134.85 per share against only $2.10B in free cash flow....
Gross margin stands at 86.8%, up from 84.6% in the prior year, while net margin reached 43.7% — both reflect a highly profitable business model. The balance sheet is extremely conservative with a debt/equity ratio of 0.0x and a current ratio of 6.91x, signalling exceptional short-term liquidity and no leverage risk. Free cash flow of $2.10B is strongly positive, though the FCF yield is low at 0.6%, reflecting the premium valuation the market places on the stock. Overall, this is a fortress balance sheet with ample capacity for reinvestment and no need for external financing, though the low FCF yield means investors are paying a high price for each dollar of cash generated.
- VALUATION — P/E of 140.4x is 3.7x the sector average of 38.4x, requiring extremely optimistic growth expectations to be sustained. - VALUATION DIVERGENCE — The Python DCF estimate of $29.85 suggests the stock trades at a 352% premium to modelled intrinsic value, with no FMP DCF available for cross-reference. - INSIDER — Over the last 90 days, there were 0 insider buys vs 8 insider sells, a signal of insider caution. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — FCF yield of 0.6% is extremely low, indicating the market is pricing $134.85 per share against only $2.10B in free cash flow.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives