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Palantir Technologies Inc Ordinary Shares - Class A PLTR

Morningstar Rating
$23.01 −1.50 (6.12%)
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Company Report

Palantir: Titan Contract Win Underscores Continued Strength in the Government Vertical

We are raising our fair value estimate for narrow-moat Palantir to $16 from $15 as we incorporate the financial impact of the firm winning the 24-month, $178 million U.S. Army Titan, or Tactical Intelligence Targeting Access Node, contract. Along with the near-term uplift as the contract value flows through Palantir’s financials, we also see this contract award as a potential long-term value driver for the business. First, we believe Palantir’s success in landing the Titan contract could enable the firm to improve its software capabilities, leading to better bids for future large contracts. Second, while not set in stone, we see the US Army possibly extending the TITAN contract beyond its initial 24-month phase. If Palantir executes well over the next couple of years, the firm could potentially bag additional mandates as the Army builds out TITAN further.

Price vs Fair Value

PLTR is trading at a 53% premium.
Price
$24.51
Fair Value
$39.00
Uncertainty
Very High
1-Star Price
$79.00
5-Star Price
$2.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Palantir has strong secular tailwinds as the AI/ML market is expected to grow rapidly due to the exponential increase in data harvested by organizations.

Bears

By not selling to countries or companies that are antithetical to its mission and cultural values, Palantir has self-restricted its growth opportunities.

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News

Trading Information

Previous Close Price
$24.51
Day Range
$22.9424.28
52-Week Range
$7.2827.50
Bid/Ask
$22.96 / $22.98
Market Cap
$50.91 Bil
Volume/Avg
70.0 Mil / 75.8 Mil

Key Statistics

Price/Earnings (Normalized)
90.47
Price/Sales
23.76
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Palantir 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.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Large Growth
Total Number of Employees
3,735

Competitors

Valuation

Metric
PLTR
CRWD
ZS
Price/Earnings (Normalized)
90.47104.0975.54
Price/Book Value
14.5733.6630.08
Price/Sales
23.7625.5614.95
Price/Cash Flow
74.9070.0749.23
Price/Earnings
PLTR
CRWD
ZS

Financial Strength

Metric
PLTR
CRWD
ZS
Quick Ratio
5.411.601.86
Current Ratio
5.551.761.98
Interest Coverage
31.12−0.01−22.56
Quick Ratio
PLTR
CRWD
ZS

Profitability

Metric
PLTR
CRWD
ZS
Return on Assets (Normalized)
14.41%13.35%11.57%
Return on Equity (Normalized)
19.17%40.68%55.65%
Return on Invested Capital (Normalized)
13.71%24.76%17.27%
Return on Assets
PLTR
CRWD
ZS
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