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 61.57%. 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: 8/10
- Profitability rank: 3/10
- Growth rank: 8/10
- GF Value rank: 1/10
- Momentum rank: 3/10
Based on the above method, GuruFocus assigned Palantir Technologies Inc the GF Score of 65 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. Palantir works only with entities in Western-allied nations and reserves the right not to work with anyone that is antithetical to Western values. The Denver-based company was founded in 2003 and went public in 2020. With a market cap of $318.95 billion and sales amounting to $3.12 billion, Palantir Technologies Inc has an operating margin of 13.02%, reflecting its operational efficiency.
Profitability Breakdown
Palantir Technologies Inc's low Profitability rank can also raise warning signals. Despite its strong financial strength and growth potential, the company's profitability rank of 3/10 indicates challenges in converting its operations into profit. This could be attributed to high operational costs or competitive pressures in the software industry. Investors should be cautious and consider these factors when evaluating the company's potential for future growth and profitability.
Next Steps
In conclusion, while Palantir Technologies Inc exhibits strong financial strength and growth metrics, its low profitability and valuation ranks highlight potential challenges for future outperformance. The GF Score of 65 suggests that the company may face hurdles in maintaining its historical performance levels. Investors should carefully assess these factors and consider the broader industry trends and competitive landscape before making investment decisions. For those seeking companies with strong GF Scores, GuruFocus Premium members can explore 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.
