High Gross Profit Margin
Strong Net Profit Margin
Strong Liquidity Ratios
Low Debt Levels
🏆 Strong Revenue Growth
💪 Competitive Advantage with AIP
🌍 Strong Government Contracts
🚀 Continued Innovation in AI
📈 Expanding Customer Base
Extremely High Valuation Ratios
Low Return on Equity
Negative Interest Coverage
⚠️ Dependence on U.S. Market
📉 International Growth Challenges
Palantir demonstrates strong business quality through substantial revenue growth and a competitive edge in AI solutions. However, its dependence on the U.S. market and challenges in international growth present notable risks. Future prospects appear bright with ongoing innovation and an expanding customer base, but international performance remains a concern.
Analysis Date: February 3, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$7.72
Current Market Price: $75.31
IV/P Ratio: 0.10x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-875.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for PLTR
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (369.08)
P/B ratio ≤ 1.5 (34.09)
Current ratio ≥ 2.0 (5.96x)
Long-term debt < Net current assets (0.04x)
Margin of safety (-875.0%)
PLTR does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The net profit margin of 16.13% indicates that PLTR retains a healthy percentage of its revenue as profit, showcasing effective cost control.
With a return on equity of only 10.67%, the company is not efficiently utilizing shareholder equity to generate profits.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
10.67%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
1.25%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
80.25%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
16.13%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
The current ratio of 5.96 and quick ratio of 5.96 demonstrate excellent liquidity, indicating that PLTR can easily cover its short-term liabilities.
The debt to equity ratio of 0.05 and debt to assets ratio of 0.04 indicate that PLTR has very low levels of debt, which enhances its financial stability.
An interest coverage ratio of 0.0 implies that the company is currently not generating enough earnings to cover its interest obligations, which is a significant red flag for investors.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.05x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
5.96x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Palantir demonstrated impressive financial performance, with revenue growing 36% year-over-year in Q4 and 29% for the full year, indicating robust demand for its solutions.
The company is leveraging its AI capabilities through AIP (AI Production), which has resulted in a substantial increase in customer acquisitions and expansions, emphasizing its unique position in the market.
Palantir has maintained strong relationships with government entities, with U.S. government revenue growing 45% year-over-year, reflecting its foundational strength in this sector.
Although the U.S. market shows significant growth, the international market remains sluggish with only 3% growth year-over-year, indicating a potential risk if reliance on the U.S. continues.
Palantir is at the forefront of the AI revolution, with significant investments in AIP and innovations like Warp Speed, positioning it well for future growth and relevance in various industries.
With nearly five times the number of U.S. commercial customers compared to three years ago, Palantir is well-positioned to capitalize on expanding demand.
Despite strong domestic performance, Palantir's international segment has not grown significantly, indicating challenges in penetrating foreign markets.