Palantir (PLTR) Stock Analysis
This is a peer-relative look at Palantir (PLTR): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | PLTR |
|---|---|
| Name | Palantir Technologies Inc. Class A Common Stock |
| Country/Region | United States |
| GICS Sector | Information Technology |
| GICS Industry Group | Software & Services |
| GICS Industry | Software |
| GICS Sub-Industry | Application Software |
| Market Capitalization | 418.93 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | September 30, 2020 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: PLTR | Industry group median |
|---|---|---|
| Total Return (1Y) | 11.65% | -12.62% |
| Total Return (3Y, Annualized) | 125.61% | 4.96% |
| Total Return (5Y, Annualized) | 45.60% | -7.49% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: PLTR | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 60.93% | 60.88% |
| Beta (5Y) | 1.60 | 1.14 |
| Max Drawdown (5Y) | -79.14% | -76.75% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: PLTR | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.12 | -0.26 |
| Sortino Ratio (1Y) | 0.20 | -0.42 |
Profitability
ROE (TTM)
Palantir (PLTR) posts ROE of 38.10%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
PLTR
Software & Services industry group
38.10%
Group distribution
- Max
- 62.27%
- PLTR
- 38.10%
- Q3
- 17.93%
- Median
- 5.25%
- Q1
- -14.34%
- Min
- -59.77%
Largest peers
- ORCL
- 53.38%
- PLTR
- 38.10%
- IBM
- 34.46%
- MSFT
- 34.04%
- SAP
- 18.32%
- PANW
- 1.74%
- CRWD
- 1.46%
Net Margin (TTM)
Palantir (PLTR) keeps 49.01% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.
PLTR
Software & Services industry group
49.01%
Group distribution
- PLTR
- 49.01%
- Max
- 41.43%
- Q3
- 14.96%
- Median
- 3.57%
- Q1
- -6.01%
- Min
- -35.38%
Largest peers
- PLTR
- 49.01%
- MSFT
- 40.31%
- ORCL
- 25.37%
- SAP
- 20.41%
- IBM
- 15.52%
- PANW
- 2.67%
- CRWD
- 0.83%
Operating Margin (TTM)
Palantir (PLTR) turns 47.12% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
PLTR
Software & Services industry group
47.12%
Group distribution
- PLTR
- 47.12%
- Max
- 47.12%
- Q3
- 15.43%
- Median
- 4.85%
- Q1
- -7.55%
- Min
- -39.13%
Largest peers
- PLTR
- 47.12%
- MSFT
- 45.11%
- ORCL
- 36.20%
- SAP
- 27.62%
- IBM
- 16.55%
- PANW
- 5.04%
- CRWD
- -2.26%
Profitability Metrics
| Metric | Current stock: PLTR | Industry group median |
|---|---|---|
| ROE (TTM) | 38.10% | 5.25% |
| ROA (TTM) | 17.29% | 1.99% |
| Net Margin (TTM) | 49.01% | 3.57% |
| Operating Margin (TTM) | 47.12% | 4.85% |
| Gross Margin (TTM) | 84.80% | 68.92% |
Growth
Revenue Growth
Palantir (PLTR) grew revenue 56.18%, above the industry benchmark range. Demand is expanding faster than at any typical peer, though growth that far ahead of the group is worth checking for acquisitions or other one-off contributions.
EPS Growth
Palantir (PLTR) grew earnings per share 231.06%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.
Growth Metrics
| Metric | Current stock: PLTR | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 56.18% | 14.44% |
| Revenue Growth (3Y CAGR) | 32.92% | 13.51% |
| EPS Growth (YoY) | 231.06% | 7.42% |
| EPS Growth (3Y CAGR) | -- | 18.25% |
Financial Strength
Current Ratio (MRQ)
Palantir (PLTR) has current ratio of 7.23, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.
PLTR
Software & Services industry group
7.23
Group distribution
- PLTR
- 7.23
- Max
- 5.67
- Q3
- 2.95
- Median
- 1.63
- Q1
- 1.01
- Min
- 0.03
Largest peers
- PLTR
- 7.23
- CRWD
- 1.57
- MSFT
- 1.23
- SAP
- 1.15
- ORCL
- 1.12
- PANW
- 0.87
- IBM
- 0.79
Debt / Equity (MRQ)
Palantir (PLTR) has debt-to-equity ratio of 0.02, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.
PLTR
Software & Services industry group
0.02
Group distribution
- Max
- 2.62
- Q3
- 1.09
- Median
- 0.35
- Q1
- 0.06
- PLTR
- 0.02
- Min
- 0.00
Largest peers
- ORCL
- 3.89
- IBM
- 1.89
- MSFT
- 0.29
- SAP
- 0.22
- CRWD
- 0.16
- PANW
- 0.09
- PLTR
- 0.02
Financial Strength Metrics
| Metric | Current stock: PLTR | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 7.23 | 1.63 |
| Debt / Equity (MRQ) | 0.02 | 0.35 |
| Net Debt / EBITDA | -3.45 | -0.02 |
Dividends
Dividend Yield (TTM)
Palantir (PLTR) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.
PLTR
Software & Services industry group
0.00%
Group distribution
- PLTR
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- IBM
- 2.88%
- ORCL
- 1.31%
- SAP
- 1.21%
- MSFT
- 0.74%
- PLTR
- 0.00%
- PANW
- 0.00%
- CRWD
- 0.00%
Dividend Payout Ratio (TTM)
Palantir (PLTR) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.
PLTR
Software & Services industry group
0.00%
Group distribution
- PLTR
- 0.00%
- Max
- 0.00%
- Q3
- 0.00%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- IBM
- 59.77%
- SAP
- 37.53%
- ORCL
- 34.31%
- MSFT
- 19.83%
- PLTR
- 0.00%
- PANW
- 0.00%
- CRWD
- 0.00%
Dividend Metrics
| Metric | Current stock: PLTR | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 0.00% |
| Dividend Payout Ratio (TTM) | 0.00% | 0.00% |
Valuation
P/E Ratio (TTM)
Palantir (PLTR) trades at P/E ratio of 149.00, above the peer range for its industry. The market is paying unusually heavily for TTM earnings relative to comparable companies.
PLTR
Software & Services industry group
149.00
Group distribution
- PLTR
- 149.00
- Max
- 102.14
- Q3
- 55.34
- Median
- 28.53
- Q1
- 16.18
- Min
- 0.36
Largest peers
- CRWD
- 5,168.50
- PANW
- 826.63
- PLTR
- 149.00
- MSFT
- 27.63
- SAP
- 26.52
- ORCL
- 23.52
- IBM
- 21.61
P/S Ratio (TTM)
Palantir (PLTR) trades at 68.05 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.
PLTR
Software & Services industry group
68.05
Group distribution
- PLTR
- 68.05
- Max
- 20.02
- Q3
- 9.37
- Median
- 4.56
- Q1
- 2.27
- Min
- 0.02
Largest peers
- PLTR
- 68.05
- CRWD
- 39.23
- PANW
- 23.56
- MSFT
- 11.09
- ORCL
- 6.43
- SAP
- 6.24
- IBM
- 3.32
P/B Ratio (MRQ)
Palantir (PLTR) trades at 42.85 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
PLTR
Software & Services industry group
42.85
Group distribution
- PLTR
- 42.85
- Max
- 19.40
- Q3
- 9.11
- Median
- 4.43
- Q1
- 2.02
- Min
- -5.19
Largest peers
- SAP
- 64.95
- PLTR
- 42.85
- CRWD
- 41.49
- ORCL
- 11.52
- PANW
- 9.83
- MSFT
- 8.32
- IBM
- 6.65
Valuation Metrics
| Metric | Current stock: PLTR | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 149.00 | 28.53 |
| P/S Ratio (TTM) | 68.05 | 4.56 |
| P/B Ratio (MRQ) | 42.85 | 4.43 |
| Free Cash Flow Yield (TTM) | 0.52% | 4.01% |