PENG Technology

Penguin Solutions, Inc.

$53.19+11.98%

Price as of close on Nov 3, 2026 · Financials updated Oct 10, 2026

Basics

Sector: Technology
Industry: Information Technology Services
Country: United States
Market cap: 2.7B USD
Enterprise value: 2.9B USD

Overall health

Strength: more profitable than most peersmore profitable than peers
Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 2.86 vs a peer median of 0.87) and more debt relative to equity (1.01× vs a peer median of 0.25×)higher risk: bigger price swings (beta 2.86 vs peers 0.87) and more debt vs equity (1.01× vs peers 0.25×)
About average: valuation

Ranks #745 of 1,612 technology companies (top 47%)

See how it ranks against its peers

Worth knowing

Profitable, but burning cash. Reports a profit, but free cash flow is negative.
Penguin Solutions reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.
Stock pay outran buybacks. Stock-based pay expense $124M vs $98M spent repurchasing shares over the 3 fiscal years to FY Aug 2025.
Over three fiscal years Penguin Solutions recorded $124M of stock-based pay expense and spent $98M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Penguin Solutions recorded $124M of stock-based pay expense and spent $98M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.
Earnings turned from a loss to a profit. Profit per share this year after a loss last year.
Penguin Solutions made a profit per share in its latest year after a loss the year before.
Valuation signals disagree. Cheaper than 64% of peers on earnings, but only 0% on free cash flow.
Relative to its earnings, Penguin Solutions looks cheaper than 64% of peers; relative to its free cash flow, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.

StockQuotient Score

53/ 100▲ 1 since Oct 27 close

Oct 5 52 → Nov 4 53 (+1)

Valuation

Is the price right?

53/100

Moderate▲ 2 since Oct 27 close

3/3 inputs reported · High confidence

Since last quarter: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 51 → 53

Share price -9.8%+4
Peer companies moved-2

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Mixed versus peers:

▲ Earnings yield
▼ FCF yield

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield3.6%

SEC filings · 12 months to May 2026Reported value30% base weight · Z-score 0.58Sector median: 0.0225 · MAD: 0.0225

EBITDA yield5.8%

SEC filings · 12 months to May 2026Reported value50% base weight · Z-score 0.42Sector median: 0.0423 · MAD: 0.0361

Free cash flow yield-2.5%

SEC filings · 12 months to May 2026 · operating cash flow − capital spendingNegative (a loss or cash outflow), so it counts as zero whatever the share price20% base weight · Z-score -1.00Sector median: 0.0274 · MAD: 0.0274

Other data (not scored)

Book yield16.1%

SEC filings · latest balance sheetReported valueInformational · 0% composite weightSector median: 0.3292 · MAD: 0.1754

Growth

Is it growing?

83/100

Strong

3/3 inputs reported · High confidence

Since last quarter: ▲ Stronger

12-month revenue up 11.5%

Why

Stronger than most peers on:

▲ EPS growth
▲ 3-yr revenue
▲ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growthUnavailable

Earnings per share turned from a loss to a profit33% base weight · Z-score 3.96Sector median: 0.1108 · MAD: 0.3050

3-year revenue growth9.7%

SEC filings · 3 years to May 2026Reported value33% base weight · Z-score 0.61Sector median: 0.0483 · MAD: 0.0793

Revenue growth12.0%

SEC filings · 12 months to May 2026Reported value33% base weight · Z-score 0.34Sector median: 0.0853 · MAD: 0.1017

Profitability

Does it earn well?

65/100

Moderate

3/3 inputs reported · High confidence

Since last quarter: Mixed

Operating margin rose 2.2 points to 7.2%
Free cash flow turned negative over the last 12 months

Why

Stronger than most peers on:

▲ ROIC
▲ ROA

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin7.2%

SEC filings · 12 months to May 2026Reported value33% base weight · Z-score 0.13Sector median: 0.0631 · MAD: 0.0710

Return on assets4.4%

SEC filings · 12 months to May 2026Reported value33% base weight · Z-score 0.41Sector median: 0.0293 · MAD: 0.0362

Return on invested capital19.4%

SEC filings · 12 months to May 2026Reported value33% base weight · Z-score 1.48Sector median: 0.0676 · MAD: 0.0857

Other data (not scored)

Gross margin27.9%

SEC filings · 12 months to May 2026Reported valueInformational · 0% composite weightSector median: 0.3343 · MAD: 0.1632

Return on equity22.1%

SEC filings · 12 months to May 2026Reported valueInformational · 0% composite weightSector median: 0.0753 · MAD: 0.0889

Risk

Debt, liquidity, price swings

Higher

Higher relative risk

3/3 inputs reported · High confidence

Since last quarter: No major change

Why it changed since the Oct 27, 2026 close: Safety percentile 10 → 9

Peer companies moved-1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Weaker than most peers on:

▼ Beta
▼ Debt / equity
▼ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

Beta2.86

Yahoo Finance · 5-year monthly beta vs the marketOutlier capped at sector 5th/95th percentile33% base weight · Z-score -3.51Sector median: 0.8710 · MAD: 0.3700

Current ratio1.54×

SEC filings · latest balance sheetReported value33% base weight · Z-score -0.42Sector median: 1.8295 · MAD: 0.6848

Debt / equity1.01×

SEC filings · latest balance sheetReported value33% base weight · Z-score -3.35Sector median: 0.2495 · MAD: 0.2270

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Penguin Solutions

Is Penguin Solutions getting weaker?: Its latest SEC filing (Jul 7, 2026) was mixed: some things better, some worse: operating margin rose 2.2 points to 7.2%; free cash flow turned negative over the last 12 months. Its overall score is 53/100, up 1 since Oct 28, 2026.
How is Penguin Solutions valued vs its peers?: Priced about in line with its peers. Valuation scores 53/100 against 1,711 technology peers. Earnings yield 3.6% vs a peer median of 2.2% (stronger than 64% of peers).Earnings yield 3.6% vs peers 2.2% (stronger than 64% of peers). Free cash flow yield -2.5% vs a peer median of 2.7% (weaker than 100% of peers).Free cash flow yield -2.5% vs peers 2.7% (weaker than 100% of peers).
Is Penguin Solutions growing?: Yes, faster than most of its peers. Growth scores 83/100 against 1,711 technology peers. 3-year revenue growth 9.7% vs a peer median of 4.8% (stronger than 65% of peers).3-year revenue growth 9.7% vs peers 4.8% (stronger than 65% of peers).
How profitable is Penguin Solutions?: More profitable than most of its peers. Profitability scores 65/100 against 1,711 technology peers. Return on invested capital 19.4% vs a peer median of 6.8% (stronger than 78% of peers).Return on invested capital 19.4% vs peers 6.8% (stronger than 78% of peers).
How risky is Penguin Solutions?: Higher risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Beta 2.86 vs a peer median of 0.87 (weaker than 100% of peers).Beta 2.86 vs peers 0.87 (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Quarter ended May 29, 2026 · filed Jul 7, 2026 · compared with the quarter ended Feb 27, 2026

Mixed: some things better, some worse

Operating margin rose 2.2 points to 7.2%
Free cash flow turned negative over the last 12 months

	Previous quarter	Latest quarter	Change
Revenue (12 months)	1.3B USD	1.5B USD	+11.5%
Net income (12 months)	54.8M USD	96.8M USD	+76.7%
Operating margin	5.0%	7.2%	+2.2 pts
Free cash flow (12 months)	99.1M USD	−69.4M USD	turned negative
Debt	442.8M USD	443.2M USD	+0.1%
Cash	489.2M USD	440.3M USD	−10.0%
Shares outstanding	50.7M	51.2M	+1.0%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one quarter at a time.

Industry valuation context

Industry: Information Technology Services · 33 companies

Valuations in Information Technology Services are near the bottom of their range since 2016.

5% of months since 2016 were valued lower than now.
14% of companies are in the most expensive fifth of their own price-to-sales history.
Over 24 months, company values −21% and earnings +27% (medians): earnings grew faster than prices.
Median price-to-sales is −47% vs the whole market, against a usual −18%.

2016Shaded: most expensive fifth of its range2026

Financials

Fiscal years from SEC annual filings · change vs the prior year

Key ratios	FY Aug 2021	FY Aug 2022	FY Aug 2023	FY Aug 2024	FY Aug 2025	Change
Gross margin	22.5%	28.0%	28.8%	29.1%	28.8%	▼ 0.3 pts
Operating margin	-1.5%	4.8%	0.6%	1.6%	4.2%	▲ 2.7 pts
Net margin	2.0%	4.8%	-13.0%	-4.5%	1.9%	▲ 6.3 pts
Return on assets (ROA)	1.6%	4.2%	-12.5%	-3.6%	1.6%	▲ 5.1 pts
Return on equity (ROE)	6.9%	17.9%	-84.3%	-13.4%	6.4%	▲ 20 pts
Free cash flow margin	12.9%	6.1%	4.5%	4.9%	7.3%	▲ 2.4 pts
Current ratio	1.63×	2.23×	2.13×	2.65×	2.25×	▼ 15%
Quick ratio	1.01×	1.72×	1.72×	2.19×	1.71×	▼ 22%
Debt to equity	1.18×	1.57×	3.55×	1.68×	1.17×	▼ 30%

PENG price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: more profitable than most peersmore profitable than peers

Drawback: higher risk than most peers: its share price swings more than most peers’ (beta 2.86 vs a peer median of 0.87) and more debt relative to equity (1.01× vs a peer median of 0.25×)higher risk: bigger price swings (beta 2.86 vs peers 0.87) and more debt vs equity (1.01× vs peers 0.25×)

About average: valuation

Ranks #745 of 1,612 technology companies (top 47%)

See how it ranks against its peers

Worth knowing

Profitable, but burning cash. Reports a profit, but free cash flow is negative.

Penguin Solutions reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.

Stock pay outran buybacks. Stock-based pay expense $124M vs $98M spent repurchasing shares over the 3 fiscal years to FY Aug 2025.

Over three fiscal years Penguin Solutions recorded $124M of stock-based pay expense and spent $98M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years Penguin Solutions recorded $124M of stock-based pay expense and spent $98M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

Earnings turned from a loss to a profit. Profit per share this year after a loss last year.

Penguin Solutions made a profit per share in its latest year after a loss the year before.

Valuation signals disagree. Cheaper than 64% of peers on earnings, but only 0% on free cash flow.

Relative to its earnings, Penguin Solutions looks cheaper than 64% of peers; relative to its free cash flow, cheaper than only 0%. The valuation score blends the two, so look at which measure fits this business best.

Questions investors ask about Penguin Solutions

Is Penguin Solutions getting weaker?

Its latest SEC filing (Jul 7, 2026) was mixed: some things better, some worse: operating margin rose 2.2 points to 7.2%; free cash flow turned negative over the last 12 months. Its overall score is 53/100, up 1 since Oct 28, 2026.

How is Penguin Solutions valued vs its peers?

Priced about in line with its peers. Valuation scores 53/100 against 1,711 technology peers. Earnings yield 3.6% vs a peer median of 2.2% (stronger than 64% of peers).Earnings yield 3.6% vs peers 2.2% (stronger than 64% of peers). Free cash flow yield -2.5% vs a peer median of 2.7% (weaker than 100% of peers).Free cash flow yield -2.5% vs peers 2.7% (weaker than 100% of peers).

Is Penguin Solutions growing?

Yes, faster than most of its peers. Growth scores 83/100 against 1,711 technology peers. 3-year revenue growth 9.7% vs a peer median of 4.8% (stronger than 65% of peers).3-year revenue growth 9.7% vs peers 4.8% (stronger than 65% of peers).

How profitable is Penguin Solutions?

More profitable than most of its peers. Profitability scores 65/100 against 1,711 technology peers. Return on invested capital 19.4% vs a peer median of 6.8% (stronger than 78% of peers).Return on invested capital 19.4% vs peers 6.8% (stronger than 78% of peers).

How risky is Penguin Solutions?

Higher risk relative to 1,711 technology peers, judged on debt, liquidity and share-price swings. Beta 2.86 vs a peer median of 0.87 (weaker than 100% of peers).Beta 2.86 vs peers 0.87 (weaker than 100% of peers). A relative measure, not a bankruptcy probability.

Previous quarter

Latest quarter

Change

Revenue (12 months)

1.3B USD

1.5B USD

+11.5%

Net income (12 months)

54.8M USD

96.8M USD

+76.7%

Operating margin

5.0%

7.2%

+2.2 pts

Free cash flow (12 months)

99.1M USD

−69.4M USD

turned negative

Debt

442.8M USD

443.2M USD

+0.1%

Cash

489.2M USD

440.3M USD

−10.0%

Shares outstanding

50.7M

51.2M

+1.0%

Key ratios

FY Aug 2021

FY Aug 2022

FY Aug 2023

FY Aug 2024

FY Aug 2025

Change

Gross margin

22.5%

28.0%

28.8%

29.1%

28.8%

▼ 0.3 pts

Operating margin

-1.5%

4.8%

0.6%

1.6%

4.2%

▲ 2.7 pts

Net margin

2.0%

4.8%

-13.0%

-4.5%

1.9%

▲ 6.3 pts

Return on assets (ROA)

1.6%

4.2%

-12.5%

-3.6%

1.6%

▲ 5.1 pts

Return on equity (ROE)

6.9%

17.9%

-84.3%

-13.4%

6.4%

▲ 20 pts

Free cash flow margin

12.9%

6.1%

4.5%

4.9%

7.3%

▲ 2.4 pts

Current ratio

1.63×

2.23×

2.13×

2.65×

2.25×

▼ 15%

Quick ratio

1.01×

1.72×

2.19×

1.71×

▼ 22%

Debt to equity

1.18×

1.57×

3.55×

1.68×

1.17×

▼ 30%