Penguin Solutions, Inc.
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.
$53.83
-$4.55 (-7.79%)
EOD Oct 22, 2026
Operating margin is thin at 9.56%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue up 26.5% YoY with margins expanding 5.3pp. However, free cash flow softened 263%, worth monitoring whether this is timing or structural.
Free cash flow declined 263% versus the prior year, cash generation momentum has weakened. Negative free cash flow of -$163M. The business is consuming cash, not generating it.
20.7x earnings. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.73B
▲ +26.5% YoY
Net Income (TTM)
$181M
▲ +611.3% YoY
Op. Margin
9.56%
▲ +5.3pp YoY
ROIC
11.38%
▲ +7.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$163M
▼ -263.4% YoY
Op. Cash Flow (TTM)
-$152M
▼ -239.3% YoY
Net Debt
$206M
Cash & Equiv.
$647M
5Y CAGR: +10.4%
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SourceComputed from the 10-Q filed 14 Oct 2026, covering the period ending 28 Aug 2026, as reported to the SEC. Data last refreshed 21 Oct 2026. How this is calculated.
Price from market data, last close as of 22 Oct 2026. Fiscal year ends Aug. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Penguin Solutions (PENG) overvalued?
At a P/E of 20.7, 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 40/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
Is Penguin Solutions a high-quality business?+
Penguin Solutions scores 40 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 9.6% operating margin and a 11.4% 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.
Is Penguin Solutions a good stock to buy right now?+
That depends on valuation and quality together, not either alone. you should weigh PENG's valuation and scores 40/100 on quality (mixed). 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.
Related stocks: Semiconductors & Related Devices
Spot a number that looks wrong? Check it in PENG's SEC filings or
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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