Planet Labs PBC Stock To $12?
Planet Labs PBC (PL) stock has jumped 35% during the past day, and is currently trading at $17.47. Our multi-factor assessment suggests that it may be time to sell PL stock. We have, overall, a pessimistic view of the stock, and a price of $12 may not be out of reach. We believe there is a near-equal mix of good and bad in PL stock given its overall Moderate operating performance and financial condition. Hence, together with its Very High valuation, this makes the stock look Risky.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Very High |
| What you get: | |
| Growth | Very Strong |
| Profitability | Very Weak |
| Financial Stability | N/A |
| Downturn Resilience | Very Weak |
| Operating Performance | Moderate |
| Stock Opinion | Risky |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $4.0 Bil in market cap, Planet Labs PBC provides high-cadence geospatial data through satellite constellations designed, constructed, and launched for diverse customer needs.
[1] Valuation Looks Very High
| PL | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 14.1 | 3.2 |
| Price-to-Earnings Ratio | -30.7 | 23.5 |
| Price-to-Free Cash Flow Ratio | 114.3 | 20.9 |
This table highlights how PL is valued vs broader market. For more details see: PL Valuation Ratios
[2] Growth Is Very Strong
- Planet Labs PBC has seen its top line grow at an average rate of 17.3% over the last 3 years
- Its revenues have grown 17% from $242 Mil to $282 Mil in the last 12 months
- Also, its quarterly revenues grew 32.6% to $81 Mil in the most recent quarter from $61 Mil a year ago.
| PL | S&P 500 | |
|---|---|---|
| 3-Year Average | 17.3% | 5.5% |
| Latest Twelve Months* | 16.9% | 6.0% |
| Most Recent Quarter (YoY)* | 32.6% | 7.3% |
This table highlights how PL is growing vs broader market.
[3] Profitability Appears Very Weak
- PL last 12 month operating income was $-73 Mil representing operating margin of -26.0%
- With cash flow margin of 38.0%, it generated nearly $107 Mil in operating cash flow over this period
- For the same period, PL generated nearly $-130 Mil in net income, suggesting net margin of about -45.9%
| PL | S&P 500 | |
|---|---|---|
| Current Operating Margin | -26.0% | 18.8% |
| Current OCF Margin | 38.0% | 20.4% |
| Current Net Income Margin | -45.9% | 13.1% |
This table highlights how PL profitability vs broader market.
[4] Financial Stability Looks N/A
| PL | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 20.4% | |
| Current Cash-to-Assets Ratio | 7.0% |
[5] Downturn Resilience Is Very Weak
PL has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- PL stock fell 82.6% from a high of $11.84 on 22 November 2021 to $2.06 on 1 November 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 September 2025
- Since then, the stock increased to a high of $17.47 on 11 December 2025 $17.47
| PL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -82.6% | -25.4% |
| Time to Full Recovery | 692 days | 464 days |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read PL Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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