Balance sheet analysis
Palantir reported total assets of $4.5 billion and $3.5 billion in 2023 and in 2022.
Palantir ‘s total assets in 2023 were up 28.6% year-on-year.
Palantir ‘s total liabilities in 2023 were $0.96 billion in 2023.
We get a debt ratio : 21.3%.
Palantir’ s debt ratio is small.
Debt servicing pressure for palantir is rather small.
Palantir’ s current assets were $4.1 billion, accounting for 92% of total assets.
Palantir ‘s assets were liquid.
Profitability analysis
Palantir’ s revenues were $2.2 billion, $1.9 billion and $1.5 billion for 2023, 2022 and 2021.
Palantir’ s gross profit was $1.8 billion, $1.5 billion and $1.2 billion in 2023, 2022 and 2021.
Palantir’ s gross profit margin was 81.8%, 79% and 80% for 2023, 2022 and 2021.
Palantir’ s operating income was $1.2 billion, -$0.16 billion and -$0.4 billion in 2023, 2022 and in 2021.
When gross margin is so high, why is operating income still so poor ? The answer is stock-based compensation.
The amount of Palantir ‘s stock-based compensation was $0.48 billion, $0.56 billion and $0.78 billion in 2023, in 2022 and in 2021.
Palantir ‘s total operating expenses include stock-based compensation.
The rate of stock-based compensation expenses to revenues was 20%, 29% and 52% in 2023, 2022 and 2021.
The rate is gradually decreasing, and this is a good news.
Cash flow analysis
Net cash provided by operating activities was $0.7 billion, $0.2 billion and $0.3 billion in 2023, 2022 and 2021.
Palantir has never repurchased stock and has never paid dividends to shareholders.
Summary
At present, Palantir has a market value of $53 billion, but we reckon that Palantir is worth $9 billion, or $4 per share is appropriate to buy.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
Palantir builds software that empowers organizations to effectively integrate their data, decisions, and operations at scale.
palantir was founded in 2003 and started building software for the intelligence community in the United States to assist in counterterrorism investigations and operations. palantir later begans working with commercial enterprises, who often faced fundamentally similar challenges in working with data.
palantir has built four principal software platforms, Gotham, Foundry, Apollo, and its Artificial Intelligence Platform (“AIP”). Gotham and Foundry enable institutions to transform massive amounts of information into an integrated data asset that reflects their operations, and AIP leverages the power of its existing machine learning technologies alongside large language models (“LLMs”) directly within Gotham and/or Foundry to help connect AI to enterprise data. For over a decade, Gotham has surfaced insights for global defense agencies, the intelligence community, disaster relief organizations and beyond. Foundry is becoming a central operating system not only for individual institutions but also for entire industries. Apollo, which we began offering as a commercial solution in 2021, is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Apollo allows our customers to run their software in virtually any environment.
