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Penguin Solutions, Inc. Quality Score

PENG

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Quality41

Growth is the primary weakness (avg 35/100). No single area scores well.

Broad-market heuristics · Not a buy/sell signal

Valuation and growth

Earnings Multiple
90/100
18.6x

Under 20x, reasonable relative to earnings

Cash Flow Multiple
0/100
-17.8x

Negative FCF, no valuation support

Revenue Growth
70/100
6.3%

5–10% CAGR, steady but not exceptional

Cash Flow Growth
0/100
Negative FCF

FCF negative, burning cash after capex

Business Quality & Capital Allocation

Share Dilution
0/100
14.6%

Heavy dilution above 5%

Margin Trend
100/100
+9.0pp

Expanded 3+pp, strong improvement

Capital Structure
0/100
$206M

Positive debt with no FCF to service it

2023
$391M
$867M
2024
$389M
$726M
2025
$454M
$530M
2026
$647M
$853M
CashDebt
Return on Capital
60/100
11.4%

10–15%, respectable returns

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Penguin Solutions (PENG) quality: score, margins and returns

Penguin Solutions (PENG) scores 41/100 on Intrinsiqq's quality score (a mixed business), a weighted blend of 7 metrics each scored 0 to 100, on 9.6% operating margins and 11.4% ROIC. Every metric is computed from SEC filings; this is analysis, not investment advice.

Frequently asked

Is Penguin Solutions (PENG) a high-quality business?+

Penguin Solutions scores 41 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which rates it a mixed business on these measures. Recent figures include a 9.6% operating margin and a 11.4% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.

What does Penguin Solutions's quality score measure?+

Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from PENG's SEC filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Penguin Solutions scores well and where it falls behind.

What is Penguin Solutions's return on invested capital (ROIC)?+

Penguin Solutions earns about 11.4% on its invested capital, which is solid. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to PENG's margins and growth on this scorecard to judge durability.

How profitable is Penguin Solutions?+

Penguin Solutions runs an operating margin of about 9.6% and a net margin of about 10.4%. Revenue has grown at roughly 10.4% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from SEC filings, not investment advice.

How the market compares: US profitability statistics

SourceQuality score computed 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.

Fiscal year ends Aug. Sector medians are approximate S&P 500 benchmarks and update periodically. Checks use broad-market heuristics, so sector norms may differ, and the valuation checks are more cyclical than the quality checks.

Peers

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Held by ETFs

PENG is in 84 US ETFs. The largest of them, with PENG's weight in each:

Spot a number that looks wrong? Check it in PENG's SEC filings or

Download this analysis as a PDF (Pro)

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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Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.