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 6.86%, juxtaposed with a three-month change of 90.96%. 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.
Based on the above method, GuruFocus assigned Palantir Technologies Inc a GF Score of 67 out of 100, which signals poor future outperformance potential.
Understanding Palantir Technologies Inc Business
Palantir Technologies Inc, with a market cap of $139.55 billion and sales of $2.65 billion, operates with a 13.8% operating margin. The company, an analytical software provider, leverages data to create efficiencies in its clients’ organizations. Serving both commercial and government clients through its Foundry and Gotham platforms, the Denver-based company was founded in 2003 and went public in 2020.
Profitability Breakdown
Palantir Technologies Inc’s low Profitability rank can also raise warning signals. The company’s profitability metrics, particularly its low rank, reflect challenges in maintaining higher profit margins compared to industry peers. This aspect is crucial as it directly impacts the company’s ability to reinvest in innovation and growth, potentially limiting its long-term value creation.
Next Steps
Considering Palantir Technologies Inc’s financial strength, profitability, and growth metrics, the GF Score highlights the firm’s unparalleled position for potential underperformance. Investors should weigh these factors heavily when considering the future trajectory of Palantir’s stock. For those looking to explore more companies with strong GF Scores, GuruFocus Premium members can use the following screener link: GF Score Screen.
Is Palantir’s current valuation a reflection of its true potential, or are there hidden variables that could influence its future performance? This question remains central to any investment decision in the tech giant’s shares.
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.
