PENG Stock Analysis: Penguin Solutions | NASDAQ
Information Technology Services | NASDAQ, USA | Market Cap: 3.296m USD | 12M Return: 247.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 217M
EPS Trend: 16.1%
Qual. Beats: 3
Rev. Trend: -14.5%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 9.1 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Penguin Solutions, Inc. (NASDAQ: PENG) is a Fremont, California-based technology company that designs, builds, deploys, and manages enterprise solutions for customers worldwide. The company operates through three reporting segments: Advanced Computing, Integrated Memory, and Optimized LED. Penguin Solutions is classified within the Information Technology sector and the GICS Semiconductors sub-industry, reflecting its position in the memory and storage supply chain alongside its broader AI and high-performance computing exposure.
The Advanced Computing segment delivers hardware, software, and services for technical computing in core and cloud environments, including high-performance computing (HPC) and AI infrastructure solutions marketed under the Penguin Solutions, Penguin Computing, Stratus, and Penguin Edge brands. The OriginAI platform targets customers deploying GPUs at scale, addressing rising enterprise demand for AI infrastructure. Stratus-branded products provide continuous availability for mission-critical data and applications in data centers and edge locations, an area commonly referred to as the high-availability or fault-tolerant computing segment.
The Integrated Memory segment operates under the SMART Modular Technologies brand, supplying dynamic random-access memory (DRAM) modules, solid-state and flash storage, and specialized memory products such as the Zefr memory module to networking, telecom, data analytics, AI, and machine learning customers. The segment also offers Altus and AMD EPYC-based servers designed for memory-intensive AI workloads, along with SSDs, SATA, and PCIe NVMe products in multiple form factors, plus embedded multimedia, USB, SD, and microSD configurations and firmware development services.
The Optimized LED segment markets packaged LED components under the Cree LED brand, including the XLamp and J Series product lines. In addition, the company provides supply chain services such as procurement, logistics, inventory management, programming, kitting, and packaging, serving OEMs, enterprise, and government customers through direct and third-party channels.
Penguin Solutions maintains collaborations with Deepgram, a speech-recognition AI software provider, and Dell Technologies, supporting integration across its computing portfolio. The company was founded in 1988 and was formerly known as SMART Global Holdings, Inc. before adopting its current name in October 2024.
- AI infrastructure demand drives OriginAI GPU deployment revenue
- Memory pricing cycle pressures Integrated Memory segment margins
- Cree LED segment faces competition from Asian LED manufacturers
| Net Income: 54.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -1.62 > 1.0 |
| NWC/Revenue: 48.04% < 20% (prev 58.49%; Δ -10.44% < -1%) |
| CFO/TA 0.07 > 3% & CFO 114.8m > Net Income 54.6m |
| Net Debt (135.9m) to EBITDA (123.0m): 1.10 < 3 |
| Current Ratio: 2.10 > 1.5 & < 3 |
| Outstanding Shares: last quarter (53.2m) vs 12m ago -2.20% < -2% |
| Gross Margin: 28.27% > 18% (prev 28.71%; Δ -0.44% > 0.5%) |
| Asset Turnover: 75.72% > 50% (prev 72.78%; Δ 2.94% > 0%) |
| Interest Coverage Ratio: 55.13 > 6 (EBIT TTM 82.4m / Interest Expense TTM 1.49m) |
| A: 0.37 (Total Current Assets 1.24b - Total Current Liabilities 590.7m) / Total Assets 1.75b |
| B: 0.05 (Retained Earnings 83.4m / Total Assets 1.75b) |
| C: 0.05 (EBIT TTM 82.4m / Avg Total Assets 1.78b) |
| D: 0.52 (Book Value of Equity 597.5m / Total Liabilities 1.14b) |
| Altman-Z'' = 3.45 = A |
| DSRI: 1.09 (Receivables 369.9m/330.4m, Revenue 1.35b/1.32b) |
| GMI: 1.02 (GM 28.71% / 28.27%) |
| AQI: 0.92 (AQ_t 0.21 / AQ_t-1 0.23) |
| SGI: 1.02 (Revenue 1.35b / 1.32b) |
| TATA: -0.03 (NI 54.6m - CFO 114.8m) / TA 1.75b) |
| Beneish M = -2.97 (Cap -4..+1) = A |
As of July 10, 2026, the stock is trading at USD 81.39 with a total of 8,881,243 shares traded. Over the past week, the price has changed by +18.28%, over one month by +31.93%, over three months by +256.19% and over the past year by +247.38%.
Current recommended Stop Loss: 71.80 (which is 11.8% or 1.1 ATR below the current price).
Penguin Solutions has received a consensus analysts rating of 4.25. Therefore, it is recommended to buy PENG.
- StrongBuy: 3
- Buy: 4
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 51.6 | -36.6% |
P/E Trailing = 45.1151
P/E Forward = 12.4844
P/S = 2.4447
P/B = 7.8985
Revenue TTM = 1.35b USD
EBIT TTM = 82.4m USD
EBITDA TTM = 123.0m USD
Long Term Debt = 442.8m USD (from longTermDebt, last quarter)
Short Term Debt = 25.7m USD (from shortTermDebt, last fiscal year)
Debt = 625.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 60.8m
Net Debt = 135.9m USD (calculated: Debt 625.0m - CCE 489.2m)
Enterprise Value = 3.43b USD (3.30b + Debt 625.0m - CCE 489.2m)
Interest Coverage Ratio = 55.13 (Ebit TTM 82.4m / Interest Expense TTM 1.49m)
EV/FCF = 32.68x (Enterprise Value 3.43b / FCF TTM 105.0m)
FCF Yield = 3.06% (FCF TTM 105.0m / Enterprise Value 3.43b)
FCF Margin = 7.79% (FCF TTM 105.0m / Revenue TTM 1.35b)
Net Margin = 4.05% (Net Income TTM 54.6m / Revenue TTM 1.35b)
Gross Margin = 28.27% ((Revenue TTM 1.35b - Cost of Revenue TTM 967.1m) / Revenue TTM)
Gross Margin QoQ = 27.32% (prev 27.87%)
Tobins Q-Ratio = 1.96 (Enterprise Value 3.43b / Total Assets 1.75b)
Interest Expense / Debt = 0.24% (Interest Expense 1.49m / Debt 625.0m)
Taxrate = 27.55% (22.3m / 80.9m)
NOPAT = 59.7m (EBIT 82.4m * (1 - 27.55%))
Current Ratio = 2.10 (Total Current Assets 1.24b / Total Current Liabilities 590.7m)
Debt / Equity = 1.05 (Debt 625.0m / totalStockholderEquity, last quarter 597.5m)
Debt / EBITDA = 1.10 (Net Debt 135.9m / EBITDA 123.0m)
Debt / FCF = 1.29 (Net Debt 135.9m / FCF TTM 105.0m)
Total Stockholder Equity = 592.7m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.07% (Net Income 54.6m / Total Assets 1.75b)
RoE = 9.21% (Net Income TTM 54.6m / Total Stockholder Equity 592.7m)
RoCE = 7.95% (EBIT 82.4m / Capital Employed (Equity 592.7m + L.T.Debt 442.8m))
RoIC = 5.34% (NOPAT 59.7m / Invested Capital 1.12b)
WACC = 13.76% (E(3.30b)/V(3.92b) * Re(16.34%) + D(625.0m)/V(3.92b) * Rd(0.24%) * (1-Tc(0.28)))
Discount Rate = 16.34% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 46.67 | Cagr: 0.95%
[DCF] Terminal Value 55.76% ; FCFF base≈118.3m ; Y1≈103.7m ; Y5≈83.8m
[DCF] Fair Price = 11.46 (EV 717.7m - Net Debt 135.9m = Equity 581.8m / Shares 50.7m; r=13.76% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 16.05 | EPS CAGR: 3.92% | SUE: 3.85 | # QB: 3
Revenue Correlation: -14.47 | Revenue CAGR: -1.34% | SUE: 0.20 | # QB: 0
EPS current Quarter (2026-11-30): EPS=0.64 | Chg30d=+0.00% | Revisions=+40% | Analysts=6
EPS current Year (2026-08-31): EPS=2.27 | Chg30d=+0.00% | Revisions=+50% | GrowthEPS=+19.7% | GrowthRev=+15.6%
EPS next Year (2027-08-31): EPS=2.81 | Chg30d=+0.00% | Revisions=+50% | GrowthEPS=+23.5% | GrowthRev=+17.3%
[Analyst] Revisions Ratio: +73% (up=8, down=0)