Penguin Solutions (PENG) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Penguin Solutions

NasdaqGS•Technology•Information Technology Services

$51.93-6.86(-0.12%)Market closed

Market Cap

$2.88B

P/E

15.9x

P/S

1.7x

P/B

5.5x

Penguin Solutions, Inc. designs, builds, deploys and manages enterprise solutions worldwide. The company operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers hardware, software, and services focusing on technical computing for core and cloud environments through computing and AI solutions. The company also provides Penguin Solutions OriginAI, an AI infrastructure solution for customers deploying GPUs at scale; continuous availability of customers critical data and applications in data centers and edge locations under the Stratus brand products; and dynamic random-access memory, modules, solid-state/flash storage, and integrated memory solutions to networking and telecom, data analytics, AI, and ML under the SMART Modular Technologies brand. In addition, it provides Zefr, a memory module; Altus and AMD EPYC based servers for expansive memory for AI workloads; flash memory products comprising solid-state drives, Serial Advanced Technology Attachment, and PCIe NVMe products in 2.5 enclosures, M.2, EDSFF, and other form factors; and multimediacard and embedded and removable USB products, SD and microSD Card configurations, and firmware development. Further, the company offers procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging supply chain services; and LEDs under the Cree LED brand; Cree LED XLamp and J Series packaged LED components. It serves OEMs, enterprises, government, and other customers through direct and third-party channels. The company has a strategic collaboration with Deepgram, Dell Technologies, and ZulaFly to offer healthcare, location-based workflow, and safety solutions. The company was formerly known as SMART Global Holdings, Inc. and changed its name to Penguin Solutions, Inc. in October 2024. Penguin Solutions, Inc. was founded in 1988 and is headquartered in Fremont, California.

How this company scores

GoodMetricSide Score: 69/100

Strongest: Growth (23/25); weakest: Balance Sheet & Red Flags (12/25).

Profitability21/25

Growth23/25

Balance Sheet & Red Flags12/25

Cash & Earnings Quality13/25

Strengths

Growing revenueHigh ROERising earningsCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 15.9x5y range 15.0x – 51.0x

Currently below its 11-quarter median.

P/S · 1.7x5y range 0.5x – 1.8x

Currently above its 20-quarter median.

P/B · 5.5x5y range 1.6x – 6.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Leverage Risk

Watch

Debt-to-equity has risen 26.0% recently — increasing financial risk even if the current ratio is manageable.

Price & Volume

Market Cap $2.88B

Metrics at a Glance

as of August 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.73B
Q. Revenue: $566.68M
TTM EBITDA: $240.83M
TTM Op. Income: $165.60M
Q. Op. Income: $69.46M
TTM Net Income: $180.62M
Q. Net Income: $93.20M
EPS: $1.676
Shares Out.: $55.63M

$1.73B in TTM revenue grew 26.5% YoY, reaching $566.68M last quarter. TTM EBITDA of $240.83M and TTM operating income of $165.60M show growth is flowing through to the bottom line. TTM net income of $180.62M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 2 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 27.5%
EBITDA Margin: 18.8%
Op. Margin: 12.3%
Net Margin: 16.4%

Op. margin of 12.3% is up 8.6% YoY — cost efficiency is improving. Net margin at 16.4% and gross margin of 27.5% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 5 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 15.9x
P/S Ratio: 1.7x
P/B Ratio: 5.5x

At 15.9x P/E, the stock trades within typical market levels. P/S of 1.7x and P/B of 5.5x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 69% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.78B
Cash: $647.21M
Long-Term Debt: $735.53M
Book Value: $520.74M
D/E Ratio: 1.4
Debt/EBITDA: 6.9

With $2.78B in assets and $735.53M in long-term debt, D/E is 1.4and book value is $520.74M — moderate leverage. Over the past year, debt/equity is up 26% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-163.14M
TTM Free Cash Flow: $-163.48M
FCF Margin: -9.4%
FCF / Net Income: -0.9

TTM FCF of $-163.48M on $-163.14M in operating cash flow. The FCF / Net Income ratio of -0.9x means the business consumes cash — it is not yet self-funding. Across the last 8 quarters, free cash flow has fallen for 3 consecutive quarters — a weakening trend.