Palantir CDR (PLTR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PLTR -
12.85 CAD
-0.16 (-1.23%)
PLTR gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 68 industry peers in the Software industry. PLTR is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. PLTR is growing strongly while it also seems undervalued. This is an interesting combination These ratings would make PLTR suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
- In the past year PLTR was profitable.
- In the past year PLTR had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: PLTR reported negative net income in multiple years.
- PLTR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 13.50%, PLTR belongs to the top of the industry, outperforming 92.65% of the companies in the same industry.
- With an excellent Return On Equity value of 16.62%, PLTR belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
- The Return On Invested Capital of PLTR (8.82%) is better than 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.5% | ||
| ROE | 16.62% | ||
| ROIC | 8.82% |
ROA(3y)0.38%
ROA(5y)-11.69%
ROE(3y)0.24%
ROE(5y)-19.79%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- PLTR has a Profit Margin of 28.11%. This is amongst the best in the industry. PLTR outperforms 95.59% of its industry peers.
- The Operating Margin of PLTR (21.81%) is better than 89.71% of its industry peers.
- The Gross Margin of PLTR (80.81%) is better than 88.24% of its industry peers.
- In the last couple of years the Gross Margin of PLTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.81% | ||
| PM (TTM) | 28.11% | ||
| GM | 80.81% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.96%
GM growth 5Y3.56%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PLTR is destroying value.
- The number of shares outstanding for PLTR has been increased compared to 1 year ago.
- PLTR has more shares outstanding than it did 5 years ago.
- PLTR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- PLTR has an Altman-Z score of 9.85. This indicates that PLTR is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of PLTR (9.85) is better than 88.24% of its industry peers.
- PLTR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.85 |
ROIC/WACC0.79
WACC11.1%
2.3 Liquidity
- PLTR has a Current Ratio of 6.43. This indicates that PLTR is financially healthy and has no problem in meeting its short term obligations.
- PLTR's Current ratio of 6.43 is amongst the best of the industry. PLTR outperforms 91.18% of its industry peers.
- PLTR has a Quick Ratio of 6.43. This indicates that PLTR is financially healthy and has no problem in meeting its short term obligations.
- PLTR has a better Quick ratio (6.43) than 91.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.43 | ||
| Quick Ratio | 6.43 |
3. Growth
3.1 Past
- PLTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 82.86%, which is quite impressive.
- Measured over the past years, PLTR shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.07% on average per year.
- PLTR shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.23%.
- Measured over the past years, PLTR shows a very strong growth in Revenue. The Revenue has been growing by 31.01% on average per year.
EPS 1Y (TTM)82.86%
EPS 3Y43.07%
EPS 5YN/A
EPS Q2Q%110%
Revenue 1Y (TTM)47.23%
Revenue growth 3Y22.95%
Revenue growth 5Y31.01%
Sales Q2Q%62.79%
3.2 Future
- The Earnings Per Share is expected to grow by 43.31% on average over the next years. This is a very strong growth
- PLTR is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 42.63% yearly.
EPS Next Y79.82%
EPS Next 2Y58.55%
EPS Next 3Y50.95%
EPS Next 5Y43.31%
Revenue Next Year56.56%
Revenue Next 2Y48.71%
Revenue Next 3Y45.44%
Revenue Next 5Y42.63%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- PLTR is valuated correctly with a Price/Earnings ratio of 14.60.
- PLTR's Price/Earnings ratio is rather cheap when compared to the industry. PLTR is cheaper than 83.82% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PLTR to the average of the S&P500 Index (27.25), we can say PLTR is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 9.09, the valuation of PLTR can be described as reasonable.
- Based on the Price/Forward Earnings ratio, PLTR is valued cheaply inside the industry as 83.82% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. PLTR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
- 75.00% of the companies in the same industry are more expensive than PLTR, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PLTR indicates a rather cheap valuation: PLTR is cheaper than 88.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.45 | ||
| EV/EBITDA | 12.64 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- PLTR has a very decent profitability rating, which may justify a higher PE ratio.
- PLTR's earnings are expected to grow with 50.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y58.55%
EPS Next 3Y50.95%
5. Dividend
5.1 Amount
- No dividends for PLTR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Palantir CDR / PLTR.CA FAQ
Can you provide the ChartMill fundamental rating for Palantir CDR?
ChartMill assigns a fundamental rating of 7 / 10 to PLTR.CA.
What is the valuation status for PLTR stock?
ChartMill assigns a valuation rating of 8 / 10 to Palantir CDR (PLTR.CA). This can be considered as Undervalued.
How profitable is Palantir CDR (PLTR.CA) stock?
Palantir CDR (PLTR.CA) has a profitability rating of 6 / 10.
What is the financial health of Palantir CDR (PLTR.CA) stock?
The financial health rating of Palantir CDR (PLTR.CA) is 8 / 10.