Penguin Solutions, Inc. (PENG) Stock

Penguin Solutions, Inc. (PENG) is a Technology stock trading at $51.14 (as of 2026-08-20), with a market capitalization of $2.62B and a trailing P/E of 20.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Penguin Solutions, Inc. designs and develops enterprise technology solutions, operating across Advanced Computing, Integrated Memory, and Optimized LED. Its offerings include memory and storage components, technical computing platforms for core and cloud environments, and edge and fault-tolerant computing solutions, serving areas such as networking, telecom, data analytics, AI and machine learning, plus related supply chain services.

Understand Penguin Solutions, Inc.: how it makes money

Penguin Solutions designs and develops enterprise technology solutions, including integrated memory products (such as dynamic random access memory modules and storage) and supply chain services (procurement, logistics, inventory management), generating revenue by selling these offerings to customers worldwide.

The profit engine is tied to product and solution sales across its integrated memory and related offerings, while cash generation depends heavily on working capital efficiency (receivables and inventory relative to payables), as reflected in its cash conversion cycle.

Business quality (Weak): The company shows positive operating profitability (operating margin 7.5%) with a 27.3% gross margin, but performance also appears sensitive to working capital dynamics (cash conversion cycle 35 days).

Valuation: At 89× earnings, PENG trades 73% above the Semiconductors average (51×). Note: one-time items can distort reported P/E.

Bull case

Multi-offering platform: Revenue comes from three reportable solution segments (Advanced Computing, Integrated Memory, Optimized LED) covering integrated memory products and related enterprise computing needs.
Operational profitability: Latest reported gross margin is 27.3% and operating margin is 7.5% (period ended 2026-02-27).
Cash conversion focus available to monitor: Working capital indicators are measurable, with cash conversion cycle reported at 35 days, along with days sales outstanding at 51 days.

Bear case

Working capital pressure risk: A cash conversion cycle of 35 days suggests that cash generation may be sensitive to how quickly customers pay (DSO 51 days) and how long inventory sits (days of inventory 38 days).
Margin sustainability risk: With operating margin at 7.5% versus gross margin at 27.3%, relatively small changes in operating costs could have an outsized impact on profitability.

Valuation — source: SEC EDGAR (first-party)
Price	$51.14
Market Cap	$2.62B
P/E Ratio	20.7
EV / EBITDA	17.3
Price / Book	5.78
Price / Sales	1.74
FCF Yield	7.5%
DCF Value (model)	$2.86
DCF Upside vs Price	-94.4%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.37B
Net Margin	1.9%
Revenue Growth (YoY)	47.6%
EPS Growth (YoY)	-7400.0%
FCF Growth (YoY)	-97.7%

Financial Health — source: SEC EDGAR
Altman Z-Score	2.78 (grey)
Piotroski F-Score	7/9 (strong)

Valuation vs Sector & Industry
Stock P/E	20.7
Sector P/E (Technology)	33.9
Industry P/E (Electronic Equipment)	39.4
vs Sector	-39.1%
vs Industry	-47.5%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($135.91M)
Institutional Holders Tracked	10

Company
Sector	Technology
Industry	Electronic Equipment
CEO	Kash Shaikh
Employees	2,700
Country	US
IPO Date	2017-05-24

Related Companies (Business model: Fabless Semiconductors; 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.