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At Penguin Solutions, we understand the boundless potential of technology and support our customers in turning cutting-edge ideas into outcomes faster, and at any scale. With over two decades of experience as trusted advisors, Penguin Solutions is an end-to-end technology company solving complex challenges in computing, memory and LED solutions.
$53.37
$7.04 (-11.65%)
Live · 05:18 PM
Operating margin is thin at 4.25%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue up 16.9% YoY with margins expanding 2.7pp.
At 38x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
38.1x earnings. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.50B
▲ +16.9% YoY
Net Income (TTM)
$97M
▲ +148.4% YoY
Op. Margin
7.23%
▲ +2.7pp YoY
ROIC
9.31%
▲ +2.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$69M
▲ +73.3% YoY
Op. Cash Flow (TTM)
-$59M
▲ +41.3% YoY
Net Debt
$68M
Cash & Equiv.
$440M
5Y CAGR: +4.0%
5Y CAGR: +12.8%
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At a P/E of 38.1, Penguin Solutions (PENG)'s valuation is best read against its own history, its peers, and the growth its price implies. A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Penguin Solutions scores 28/100 on Intrinsiqq's quality scorecard, weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full . This is analysis, not investment advice.
Penguin Solutions scores 28 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 7.2% operating margin and a 9.3% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. you should weigh PENG's valuation and scores 28/100 on quality (lower-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.