Penguin Solutions, Inc. (PENG) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Penguin Solutions, Inc. Do?
Penguin Solutions, Inc., a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. It operates through Memory Solutions, Intelligent Platform Solutions, and LED Solutions segments. The company offers dynamic random access memory modules, solid-state and flash storage, and other advanced memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services. It also provides Penguin Computing that focus on technical computing for core and cloud environments through HPC and AI solutions; and Penguin Edge, an edge computing solution for embedded and wireless applications including high-performance products for government, health care, industrial, and telecommunications applications. In addition, the company offers Stratus, which provides simplified, protected, and autonomous fault tolerant computing solutions in the data center and at the Edge through hardware and software services; and solutions to education, energy, financial services, government, hyperscale, and manufacturing markets. Further, it provides LED-based products comprising blue and green LED chips based on gallium nitride, and related materials under Cree LED brand; and surface mount devices under the Cree LED XLamp and J Series brand. The company sells its products directly to original equipment manufacturers, enterprise, government and other end customers through direct sales force, e-commerce, customer service representatives, on-site field application engineers, independent sales representatives, distributors, integrators, and resellers. 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 based in Grand Cayman, Cayman Islands. Penguin Solutions, Inc. (PENG) is classified as a small-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Mark W. Adams. With a market capitalization of $959M, PENG is one of the notable companies in the Technology sector.
Penguin Solutions, Inc. (PENG) Stock Rating — Hold (April 2026)
As of April 2026, Penguin Solutions, Inc. receives a Hold rating with a composite score of 42.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.PENG ranks #1,201 out of 4,446 stocks in our coverage universe. Within the Technology sector, Penguin Solutions, Inc. ranks #123 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PENG Stock Price and 52-Week Range
Penguin Solutions, Inc. (PENG) currently trades at $23.02. The stock gained $0.17 (0.7%) in the most recent trading session. The 52-week high for PENG is $29.80, which means the stock is currently trading -22.8% from its annual peak. The 52-week low is $14.20, putting the stock 62.1% above its annual trough. Recent trading volume was 1.0M shares, reflecting moderate market activity.
Is PENG Overvalued or Undervalued? — Valuation Analysis
Penguin Solutions, Inc. (PENG) carries a value factor score of 49/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 19.72x, compared to the Technology sector average of 45.27x — a discount of 56%. The price-to-book ratio stands at 2.75x, versus the sector average of 3.16x. The price-to-sales ratio is 0.82x, compared to 1.06x for the average Technology stock. On an enterprise value basis, PENG trades at 21.27x EV/EBITDA, versus 12.79x for the sector.
Overall, PENG's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Penguin Solutions, Inc. Profitability — ROE, Margins, and Quality Score
Penguin Solutions, Inc. (PENG) earns a quality factor score of 47/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 14.0%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at 3.3% versus the sector average of -1.0%.
On a margin basis, Penguin Solutions, Inc. reports gross margins of 28.3%, compared to 50.9% for the sector. The operating margin is 5.3% (sector: -0.5%). Net profit margin stands at 4.1%, versus -1.5% for the average Technology stock. Revenue growth is running at 0.6% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
PENG Debt, Balance Sheet, and Financial Health
Penguin Solutions, Inc. has a debt-to-equity ratio of 109.0%, compared to the Technology sector average of 43.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.10x, indicating strong short-term liquidity. Total debt on the balance sheet is $443M.
PENG has a beta of 1.82, meaning it is more volatile than the broader market — a $10,000 investment in PENG would be expected to move 81.6% more than the S&P 500 on any given day. The stability factor score for Penguin Solutions, Inc. is 36/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
Penguin Solutions, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Penguin Solutions, Inc. reported revenue of $1.38B and earnings per share (EPS) of $0.59. Net income for the quarter was $57M. Gross margin was 28.3%. Operating income came in at $74M.
In Q2 2026, Penguin Solutions, Inc. reported revenue of $343M and earnings per share (EPS) of $0.59. Net income for the quarter was $39M. Gross margin was 27.3%. Revenue grew -6.2% year-over-year compared to Q2 2025. Operating income came in at $26M.
In Q1 2026, Penguin Solutions, Inc. reported revenue of $343M and earnings per share (EPS) of $0.04. Net income for the quarter was $6M. Gross margin was 28.0%. Revenue grew 0.6% year-over-year compared to Q1 2025. Operating income came in at $20M.
In FY 2025, Penguin Solutions, Inc. reported revenue of $1.37B and earnings per share (EPS) of $0.29. Net income for the quarter was $29M. Gross margin was 28.8%. Operating income came in at $58M.
Over the past 8 quarters, Penguin Solutions, Inc. has demonstrated a growth trajectory, with revenue expanding from $341M to $1.38B. Investors analyzing PENG stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PENG Dividend Yield and Income Analysis
Penguin Solutions, Inc. (PENG) does not currently pay a dividend. This is common among smaller companies in the Electronic Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
PENG Momentum and Technical Analysis Profile
Penguin Solutions, Inc. (PENG) has a momentum factor score of 40/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 43/100 reflects moderate short selling activity.
PENG vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Penguin Solutions, Inc. (PENG) ranks #123 out of 584 stocks based on the Blank Capital composite score. This places PENG in the top quartile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing PENG against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PENG vs S&P 500 (SPY) comparison to assess how Penguin Solutions, Inc. stacks up against the broader market across all factor dimensions.
PENG Next Earnings Date
No upcoming earnings date has been announced for Penguin Solutions, Inc. (PENG) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PENG? — Investment Thesis Summary
Penguin Solutions, Inc. presents a balanced picture with arguments on both sides. High volatility (stability score 36/100) increases portfolio risk.
In summary, Penguin Solutions, Inc. (PENG) earns a Hold rating with a composite score of 42.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PENG stock.
Related Resources for PENG Investors
Explore more research and tools: PENG vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare PENG head-to-head with peers: PENG vs IHS, PENG vs VRSN, PENG vs ESE.