(PENG) Penguin Solutions - Overview

Sector: Technology | Industry: Information Technology Services | Exchange: NASDAQ (USA) | Market Cap: 2.403m USD | Total Return: 146.9% in 12m

AI Infrastructure, Memory Modules, LED Components, Edge Computing

Total Rating 67

Safety 86

Buy Signal 1.36

Information Technology Services
Industry Rotation: +4.7

Market Cap: 2.40B
Avg Turnover: 136M

Risk 3d forecast

Volatility60.4%

VaR 5^th Pctl8.91%

VaR vs Median-13.3%

Reward TTM

Sharpe Ratio1.81

Rel. Str. IBD97.9

Rel. Str. Peer Group81.9

Character TTM

Beta2.990

Beta Downside2.838

Hurst Exponent0.503

Drawdowns 3y

Max DD54.84%

CAGR/Max DD0.58

CAGR/Mean DD1.16

EPS (Earnings per Share)

EPS CAGR: -12.82%
EPS Trend: -42.5%

Last SUE: 1.67
Qual. Beats: 1

Revenue

Rev. CAGR: -7.66%
Rev. Trend: -46.6%

Last SUE: 0.20
Qual. Beats: 0

Warnings

No concerns identified

Tailwinds

Supp Ema8, Leader, Tailwind, Pullback 52w

Description: PENG Penguin Solutions

Penguin Solutions, Inc. (PENG), formerly SMART Global Holdings, operates as a diversified technology provider specializing in high-performance computing (HPC), AI infrastructure, and integrated memory solutions. The company’s business model is structured around three primary segments: Advanced Computing, Integrated Memory, and Optimized LED. Through brands like Penguin Computing and Stratus, the firm designs and manages end-to-end enterprise solutions, including GPU-driven AI infrastructure and fault-tolerant computing for edge and data center environments.

The company serves a broad client base across the telecommunications, networking, and government sectors. In addition to hardware, Penguin Solutions provides specialized supply chain services such as logistics and inventory management. The semiconductor and HPC sectors are currently characterized by high capital expenditures as enterprises transition toward liquid-cooled data centers and large-scale AI clusters. For a more granular perspective on these industry trends, investors may find it useful to examine the analytics available on ValueRay.

Penguin Solutions also maintains a significant presence in the specialty memory market through its SMART Modular Technologies brand, producing high-density DRAM and flash storage for industrial and enterprise applications. Its LED segment, operating under the Cree LED brand, focuses on high-performance components for general lighting and specialty applications. This multi-segment approach allows the company to capture value across different stages of the hardware lifecycle, from component manufacturing to complex system integration.

Headlines to Watch Out For

Enterprise AI infrastructure demand accelerates GPU-based high performance computing revenue
SK hynix strategic investment strengthens liquidity and AI data center expansion
Memory segment cyclicality impacts overall gross margins and hardware profitability
Transition to high-margin software and services reduces reliance on legacy hardware
Supply chain constraints for advanced chips limit deployment of large-scale AI clusters

Piotroski VR‑10 (Strict) 7.0

Net Income: 54.6m TTM > 0 and > 6% of Revenue
FCF/TA: 0.06 > 0.02 and ΔFCF/TA -1.37 > 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 (75.1m) to EBITDA (110.2m): 0.68 < 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 0.29%; Δ 2.80k% > 0.5%)
Asset Turnover: 75.72% > 50% (prev 72.78%; Δ 2.94% > 0%)
Interest Coverage Ratio: 19.21 > 6 (EBITDA TTM 110.2m / Interest Expense TTM 1.49m)

Altman Z'' 2.77

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: 0.02 (EBIT TTM 28.7m / Avg Total Assets 1.78b)
D: 0.07 (Book Value of Equity 85.3m / Total Liabilities 1.14b)
Altman-Z'' Score: 2.77 = A

Beneish M -3.00

DSRI: 1.09 (Receivables 369.9m/330.4m, Revenue 1.35b/1.32b)
GMI: 1.02 (GM 28.27% / 28.71%)
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-Score: -3.00 (Cap -4..+1) = A

What is the price of PENG shares? As of May 21, 2026, the stock is trading at USD 46.27 with a total of 3,073,190 shares traded.
Over the past week, the price has changed by +4.85%, over one month by +64.66%, over three months by +145.99% and over the past year by +146.91%.

Is PENG a buy, sell or hold? 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

What are the forecasts/targets for the PENG price?

Analysts Target Price	38.3	-17.2%

Penguin Solutions (PENG) - Fundamental Data Overview as of 20 May 2026

P/E Trailing = 65.3
P/E Forward = 8.1169
P/S = 1.782
P/B = 5.6851
Revenue TTM = 1.35b USD
EBIT TTM = 28.7m USD
EBITDA TTM = 110.2m USD
Long Term Debt = 442.8m USD (from longTermDebt, last quarter)
Short Term Debt = 25.7m USD (from shortTermDebt, last fiscal year)
Debt = 564.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 75.1m USD (from netDebt column, last quarter)
Enterprise Value = 2.48b USD (2.40b + Debt 564.3m - CCE 489.2m)
Interest Coverage Ratio = 19.21 (Ebit TTM 28.7m / Interest Expense TTM 1.49m)
EV/FCF = 22.63x (Enterprise Value 2.48b / FCF TTM 109.5m)
FCF Yield = 4.42% (FCF TTM 109.5m / Enterprise Value 2.48b)
FCF Margin = 8.12% (FCF TTM 109.5m / 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 = 1.42 (Enterprise Value 2.48b / Total Assets 1.75b)
Interest Expense / Debt = 0.13% (Interest Expense 721k / Debt 564.3m)
Taxrate = 27.21% (14.4m / 53.0m)
NOPAT = 20.9m (EBIT 28.7m * (1 - 27.21%))
Current Ratio = 2.10 (Total Current Assets 1.24b / Total Current Liabilities 590.7m)
Debt / Equity = 0.94 (Debt 564.3m / totalStockholderEquity, last quarter 597.5m)
Debt / EBITDA = 0.68 (Net Debt 75.1m / EBITDA 110.2m)
Debt / FCF = 0.69 (Net Debt 75.1m / FCF TTM 109.5m)
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 = 2.77% (EBIT 28.7m / Capital Employed (Equity 592.7m + L.T.Debt 442.8m))
RoIC = 2.20% (NOPAT 20.9m / Invested Capital 947.5m)
WACC = 13.38% (E(2.40b)/V(2.97b) * Re(16.50%) + D(564.3m)/V(2.97b) * Rd(0.13%) * (1-Tc(0.27)))
Discount Rate = 16.50% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 46.67 | Cagr: 0.95%
[DCF] Terminal Value 65.46% ; FCFF base≈120.9m ; Y1≈145.3m ; Y5≈233.3m
[DCF] Fair Price = 35.72 (EV 1.89b - Net Debt 75.1m = Equity 1.81b / Shares 50.7m; r=13.38% [WACC]; 5y FCF grow 21.52% → 3.0% )
EPS Correlation: -42.54 | EPS CAGR: -12.82% | SUE: 1.67 | # QB: 1
Revenue Correlation: -46.61 | Revenue CAGR: -7.66% | SUE: 0.20 | # QB: 0
EPS current Quarter (2026-05-31): EPS=0.52 | Chg30d=+0.00% | Revisions=+9% | Analysts=7
EPS current Year (2026-08-31): EPS=2.19 | Chg30d=+0.00% | Revisions=+64% | GrowthEPS=+15.0% | GrowthRev=+12.3%
EPS next Year (2027-08-31): EPS=2.62 | Chg30d=+1.83% | Revisions=+40% | GrowthEPS=+20.0% | GrowthRev=+16.1%
[Analyst] Revisions Ratio: +64%