Long-established in the software industry, Palantir Technologies Inc (PLTR, Financial) has enjoyed a stellar reputation. However, it has recently witnessed a daily loss of 0.91%, juxtaposed with a three-month change of 116.53%. Fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of Palantir Technologies Inc.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 10/10
- Profitability rank: 3/10
- Growth rank: 6/10
- GF Value rank: 1/10
- Momentum rank: 3/10
Based on the above method, GuruFocus assigned Palantir Technologies Inc the GF Score of 60 out of 100, which signals poor future outperformance potential.
Understanding Palantir Technologies Inc Business
Palantir Technologies Inc is an analytical software company that focuses on leveraging data to create efficiencies in its clients' organizations. The firm serves commercial and government clients via its Foundry and Gotham platforms, respectively. The Denver-based company was founded in 2003 and went public in 2020. With a market cap of $181.83 billion and sales amounting to $2.65 billion, Palantir Technologies Inc has an operating margin of 13.8%. Despite its impressive market presence, the company's financial metrics suggest potential challenges ahead.
Profitability Breakdown
Palantir Technologies Inc's low Profitability rank can also raise warning signals. Additionally, Palantir Technologies Inc's Gross Margin has also declined over the past five years, as evidenced by the data: 2020: 67.74; 2021: 77.99; 2022: 78.56; 2023: 80.62; 2024: 63.56. This trend underscores the company's struggles to convert its revenue into profits.
Next Steps
Given the company's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential underperformance. Investors should carefully consider these factors when evaluating Palantir Technologies Inc's future prospects. For those seeking companies with stronger GF Scores, GuruFocus Premium members can find more options using the following screener link: GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
