PENG Stock Analysis: Penguin Solutions | NASDAQ
Information Technology Services | NASDAQ, USA | Market Cap: 3.290m USD | 12M Return: 168.9% | US7069151055 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 89.9M
EPS Trend: 69.0%
Qual. Beats: 4
Rev. Trend: 43.5%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 9.3 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 U.S.-based provider of enterprise computing, memory, and LED solutions, operating through three segments: Advanced Computing, Integrated Memory, and Optimized LED. Founded in 1988 and headquartered in Fremont, California, the company was formerly known as SMART Global Holdings, Inc. before adopting its current name in October 2024. It sits within the Information Technology sector and is classified in the Semiconductors sub-industry as a mid-cap stock.
The company delivers technical computing hardware, software, and services for core and cloud environments, including the Penguin Solutions OriginAI platform designed for customers deploying GPUs at scale. Its Stratus-branded products support continuous availability of critical data and applications across data centers and edge locations. Through its SMART Modular Technologies brand, Penguin Solutions supplies DRAM modules, solid-state and flash storage, and integrated memory products to customers in networking, telecom, data analytics, and AI/ML workloads, while also offering Altus and AMD EPYC-based servers optimized for memory-intensive AI applications.
Beyond core computing and memory offerings, Penguin Solutions supplies flash memory products in multiple form factors (2.5 enclosures, M.2, EDSFF), embedded and removable storage (multimediacard, SD, microSD, USB), and provides value-added supply chain services such as procurement, logistics, inventory management, programming, kitting, and packaging. The Optimized LED segment markets LEDs under the Cree LED brand, including Cree LED XLamp and J Series packaged LED components. The business model is primarily B2B, serving OEMs, enterprises, and government customers through direct sales and third-party channels, with strategic collaborations involving Deepgram, Dell Technologies, and ZulaFly to deliver healthcare, location-based workflow, and safety solutions.
- OriginAI GPU infrastructure bookings surge on enterprise AI demand
- Integrated Memory margins track DRAM pricing cycle volatility
- Cree LED faces pricing pressure from Chinese supplier competition
| Net Income: 96.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.03 > 0.02 and ΔFCF/TA -11.68 > 1.0 |
| NWC/Revenue: 40.53% < 20% (prev 57.61%; Δ -17.08% < -1%) |
| CFO/TA -0.03 > 3% & CFO -55.8m > Net Income 96.6m |
| Net Debt (121.6m) to EBITDA (164.4m): 0.74 < 3 |
| Current Ratio: 1.54 > 1.5 & < 3 |
| Outstanding Shares: last quarter (53.2m) vs 12m ago -1.03% < -2% |
| Gross Margin: 27.90% > 18% (prev 28.67%; Δ -0.76% > 0.5%) |
| Asset Turnover: 75.25% > 50% (prev 74.44%; Δ 0.81% > 0%) |
| Interest Coverage Ratio: 79.84 > 6 (EBIT TTM 125.4m / Interest Expense TTM 1.57m) |
| A: 0.28 (Total Current Assets 1.73b - Total Current Liabilities 1.12b) / Total Assets 2.19b |
| B: 0.06 (Retained Earnings 125.0m / Total Assets 2.19b) |
| C: 0.06 (EBIT TTM 125.4m / Avg Total Assets 2.00b) |
| D: 0.25 (Book Value of Equity 439.1m / Total Liabilities 1.74b) |
| Altman-Z'' = 2.70 = A |
| DSRI: 2.15 (Receivables 704.3m/292.5m, Revenue 1.50b/1.34b) |
| GMI: 1.03 (GM 28.67% / 27.90%) |
| AQI: 0.67 (AQ_t 0.15 / AQ_t-1 0.22) |
| SGI: 1.12 (Revenue 1.50b / 1.34b) |
| TATA: 0.07 (NI 96.6m - CFO -55.8m) / TA 2.19b) |
| Beneish M = -2.16 (Cap -4..+1) = BB |
As of October 08, 2026, the stock is trading at USD 72.61 with a total of 20,973,895 shares traded. Over the past week, the price has changed by +32.77%, over one month by +41.54%, over three months by +15.79% and over the past year by +168.93%.
Current recommended Stop Loss: 68.60 (which is 5.5% or 1.1 ATR below the current price).
Penguin Solutions has no consensus analysts rating.
| Analysts Target Price | 74.3 | 2.3% |
P/E Trailing = 45.8643
P/E Forward = 12.4844
P/S = 2.1896
P/B = 6.2883
Revenue TTM = 1.50b USD
EBIT TTM = 125.4m USD
EBITDA TTM = 164.4m USD
Long Term Debt = 294.8m USD (from longTermDebt, last quarter)
Short Term Debt = 148.4m USD (from shortTermDebt, last quarter)
Debt = 561.9m USD (from shortLongTermDebtTotal, last quarter) + Leases 59.3m
Net Debt = 121.6m USD (calculated: Debt 561.9m - CCE 440.3m)
Enterprise Value = 3.41b USD (3.29b + Debt 561.9m - CCE 440.3m)
Interest Coverage Ratio = 79.84 (Ebit TTM 125.4m / Interest Expense TTM 1.57m)
EV/FCF = -51.40x (Enterprise Value 3.41b / FCF TTM -66.4m)
FCF Yield = -1.95% (FCF TTM -66.4m / Enterprise Value 3.41b)
FCF Margin = -4.42% (FCF TTM -66.4m / Revenue TTM 1.50b)
Net Margin = 6.43% (Net Income TTM 96.6m / Revenue TTM 1.50b)
Gross Margin = 27.90% ((Revenue TTM 1.50b - Cost of Revenue TTM 1.08b) / Revenue TTM)
Gross Margin QoQ = 27.83% (prev 27.32%)
Tobins Q-Ratio = 1.56 (Enterprise Value 3.41b / Total Assets 2.19b)
Interest Expense / Debt = 0.28% (Interest Expense 1.57m / Debt 561.9m)
Taxrate = 18.19% (22.5m / 123.9m)
NOPAT = 102.6m (EBIT 125.4m * (1 - 18.19%))
Current Ratio = 1.54 (Total Current Assets 1.73b / Total Current Liabilities 1.12b)
Debt / Equity = 1.28 (Debt 561.9m / totalStockholderEquity, last quarter 439.1m)
Debt / EBITDA = 0.74 (Net Debt 121.6m / EBITDA 164.4m)
Debt / FCF = -1.83 (negative FCF - burning cash) (Net Debt 121.6m / FCF TTM -66.4m)
Total Stockholder Equity = 556.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.84% (Net Income 96.6m / Total Assets 2.19b)
RoE = 17.37% (Net Income TTM 96.6m / Total Stockholder Equity 556.2m)
RoCE = 14.74% (EBIT 125.4m / Capital Employed (Equity 556.2m + L.T.Debt 294.8m))
RoIC = 8.97% (NOPAT 102.6m / Invested Capital 1.14b)
WACC = 15.94% (E(3.29b)/V(3.85b) * Re(18.62%) + D(561.9m)/V(3.85b) * Rd(0.28%) * (1-Tc(0.18)))
Discount Rate = 18.62% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 24.69 | Cagr: 0.98%
[DCF] Fair Price = unknown (Cash Flow -66.4m)
EPS Correlation: 68.99 | EPS CAGR: 18.37% | SUE: 4.0 | # QB: 4
Revenue Correlation: 43.51 | Revenue CAGR: 3.80% | SUE: 3.16 | # QB: 1
EPS current Quarter (2026-11-30): EPS=0.73 | Chg30d=+0.99% | Revisions=+44% | Analysts=7
EPS current Year (2027-08-31): EPS=3.38 | Chg30d=+0.94% | Revisions=+70% | GrowthEPS=+28.8% | GrowthRev=+31.2%
[Analyst] Revisions Ratio: +69% (up=12, down=1)