Taking everything into account, PLTR scores 7 out of 10 in our fundamental rating. PLTR was compared to 277 industry peers in the Software industry. Both the health and profitability get an excellent rating, making PLTR a very profitable company, without any liquidiy or solvency issues. PLTR is valued quite expensively, but it does show have an excellent growth rating. With these ratings, PLTR could be worth investigating further for growth and quality investing!.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year PLTR was profitable.
PLTR had a positive operating cash flow in the past year.
In multiple years PLTR reported negative net income over the last 5 years.
PLTR had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

The Return On Assets of PLTR (13.50%) is better than 91.34% of its industry peers.
The Return On Equity of PLTR (16.62%) is better than 84.12% of its industry peers.
PLTR's Return On Invested Capital of 9.68% is amongst the best of the industry. PLTR outperforms 83.75% of its industry peers.

		Industry Rank	Sector Rank
ROA	13.5%
ROE	16.62%
ROIC	9.68%

ROA(3y)0.38%

ROA(5y)-11.69%

ROE(3y)0.24%

ROE(5y)-19.79%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

PLTR has a better Profit Margin (28.11%) than 88.45% of its industry peers.
Looking at the Operating Margin, with a value of 21.81%, PLTR belongs to the top of the industry, outperforming 87.73% of the companies in the same industry.
The Gross Margin of PLTR (80.81%) is better than 83.03% of its industry peers.
In the last couple of years the Gross Margin of PLTR has grown nicely.

		Industry Rank	Sector Rank
OM	21.81%
PM (TTM)	28.11%
GM	80.81%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.96%

GM growth 5Y3.56%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PLTR is destroying value.
PLTR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PLTR has more shares outstanding
PLTR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 156.71 indicates that PLTR is not in any danger for bankruptcy at the moment.
PLTR's Altman-Z score of 156.71 is amongst the best of the industry. PLTR outperforms 99.28% of its industry peers.
There is no outstanding debt for PLTR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	156.71

ROIC/WACC0.87

WACC11.1%

2.3 Liquidity

A Current Ratio of 6.43 indicates that PLTR has no problem at all paying its short term obligations.
The Current ratio of PLTR (6.43) is better than 90.25% of its industry peers.
A Quick Ratio of 6.43 indicates that PLTR has no problem at all paying its short term obligations.
PLTR's Quick ratio of 6.43 is amongst the best of the industry. PLTR outperforms 90.25% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	6.43
Quick Ratio	6.43

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WACC

Debt/Equity

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 82.86% over the past year.
The Earnings Per Share has been growing by 43.07% on average over the past years. This is a very strong growth
PLTR shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.23%.
PLTR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.01% yearly.

EPS 1Y (TTM)82.86%

EPS 3Y43.07%

EPS 5YN/A

EPS Q2Q%110%

Revenue 1Y (TTM)47.23%

Revenue growth 3Y22.95%

Revenue growth 5Y31.01%

Sales Q2Q%62.79%

3.2 Future

The Earnings Per Share is expected to grow by 43.31% on average over the next years. This is a very strong growth
Based on estimates for the next years, PLTR will show a very strong growth in Revenue. The Revenue will grow by 42.63% on average per year.

EPS Next Y79.82%

EPS Next 2Y58.55%

EPS Next 3Y50.95%

EPS Next 5Y43.31%

Revenue Next Year56.56%

Revenue Next 2Y48.64%

Revenue Next 3Y45.29%

Revenue Next 5Y42.63%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 265.00 indicates a quite expensive valuation of PLTR.
Based on the Price/Earnings ratio, PLTR is valued a bit more expensive than the industry average as 60.29% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.21. PLTR is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 164.56 indicates a quite expensive valuation of PLTR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PLTR indicates a slightly more expensive valuation: PLTR is more expensive than 62.09% of the companies listed in the same industry.
PLTR is valuated expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	265
Fwd PE	164.56

4.2 Price Multiples

PLTR's Enterprise Value to EBITDA ratio is in line with the industry average.
PLTR's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	225.26
EV/EBITDA	438.44

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PLTR does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PLTR may justify a higher PE ratio.
A more expensive valuation may be justified as PLTR's earnings are expected to grow with 50.95% in the coming years.