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 0.94%, juxtaposed with a three-month change of 44.91%. 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: 9/10
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 $88.76 billion and sales of $2.48 billion, operates primarily through its analytical software platforms, Foundry and Gotham. These platforms are designed to leverage data to create efficiencies in its clients' organizations, serving both commercial and government sectors. Founded in 2003 and headquartered in Denver, Palantir went public in 2020. The company's operating margin stands at 11.78%, reflecting its profitability in transforming data into actionable insights.
Profitability Breakdown
Palantir Technologies Inc's low Profitability rank can also raise warning signals. Despite its innovative technology and broad market base, the company's profitability metrics are underwhelming compared to industry standards. This aspect is crucial as it directly impacts the company's ability to reinvest in innovation and expand its market reach, potentially limiting its growth and attractiveness to investors.
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 closely monitor these metrics and consider the broader industry trends and economic factors that might influence the company's future. For those looking to explore more about companies with strong GF Scores, GuruFocus Premium members can use 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.
