Penguin Solutions Balance Sheet Health
Financial Health criteria checks 5/6
Penguin Solutions has a total shareholder equity of $656.4M and total debt of $443.2M, which brings its debt-to-equity ratio to 67.5%. Its total assets and total liabilities are $2.2B and $1.5B respectively. Penguin Solutions's EBIT is $122.8M making its interest coverage ratio 78.2. It has cash and short-term investments of $440.3M.
Key information
67.51%
Debt to equity ratio
US$443.16m
Debt
| Interest coverage ratio | 78.2x |
| Cash | US$440.30m |
| Equity | US$656.41m |
| Total liabilities | US$1.53b |
| Total assets | US$2.19b |
Recent financial health updates
Recent updates
Penguin Solutions: 74% Of Revenue Is AI, But 89% Of The Profit Is A Memory Cycle
Summary Penguin Solutions’ Q3 print on July 7 showed a record quarter, guidance raised, and AI now three-quarters of the business. Memory added $145M of the $154M in total revenue growth. Memory operating income more than quintupled and is now 89% of total segment operating income. And memory’s own gross margin went up, 21% to 30%. The Advanced Computing segment, which owns the AI narrative, saw revenue coming in flat. Its cost of goods rose 35%. So its gross margin collapsed from 43.4% to 26.5%, and its operating income fell from $24.7M to $3.9M. The market is paying a durable-AI-platform multiple for what is, this quarter, a specialty-memory company having a very good cycle with a thin-margin AI-systems business bolted on. At 24x forward, the good news is in the price, and the risk/reward from here is skewed against the buyer. Read the full article on Seeking Alpha
PENG: FY26 AI Infrastructure And Integrated Memory Momentum Support Balanced Outlook
The analyst fair value estimate for Penguin Solutions moves to $75 from $66, as analysts point to raised Street price targets, higher FY26 guidance, and momentum across integrated memory and AI infrastructure as key supports for the updated outlook. Analyst Commentary Recent research on Penguin Solutions highlights steadily improving sentiment around the stock, with several bullish analysts lifting price targets and pointing to product momentum and updated guidance as key supports for valuation.PENG: FY26 Guidance And AI Infrastructure Focus Will Shape Balanced Outlook
Penguin Solutions' analyst price target has moved from about $34 to $66, with analysts pointing to updated FY26 guidance and stronger expectations around integrated memory and AI infrastructure demand as key drivers behind the higher valuation assumptions. Analyst Commentary Recent Street research on Penguin Solutions points to a cluster of bullish reactions around the company’s updated FY26 guidance and its positioning in integrated memory and AI infrastructure.Penguin Solutions (PENG) Stock Could Be 75% Overvalued Despite AI Infrastructure Momentum
Penguin Solutions (PENG) has drawn investor attention after rebranding from SMART Global Holdings. The company has shifted its identity while continuing to operate across advanced computing, integrated memory, and LED segments that collectively generated revenue of about US$1.35b. See our latest analysis for Penguin Solutions. The recent rebrand has been accompanied by sharp share price momentum, with a 1-day share price return of 12.52% and a 30-day share price return of 26.20%. Over longer...
PENG: Raised Guidance And CFO Transition Will Pressure Overextended AI Hype
The analyst price target for Penguin Solutions has been raised by $3, with analysts pointing to updated longer term guidance and their expectations for stronger AI infrastructure and integrated memory demand as key supports for higher fair value, higher revenue growth, and a higher profit margin in their models. Analyst Commentary Recent research highlights a mix of optimism around Penguin Solutions' AI infrastructure and integrated memory businesses, alongside more cautious views that focus on execution and valuation risk.
PENG: AI Guidance And Execution Risks Will Restrain Future Upside
The analyst price target for Penguin Solutions has moved by about $9.60, with analysts pointing to updated fair value estimates, a slightly adjusted discount rate, modest tweaks to revenue growth and profit margin assumptions, and a higher future P/E multiple to justify the change. Analyst Commentary Recent Street research on Penguin Solutions has been mixed, with some analysts lifting price targets and others trimming them or lowering ratings.PENG: Higher Multiple And Mixed Guidance Will Challenge Bullish Expectations
Analysts have lifted the fair value estimate for Penguin Solutions by $1 to $24, reflecting updated assumptions on growth, profitability and future P/E after a mix of recent price target increases and cuts across the Street. Analyst Commentary Street research on Penguin Solutions has been mixed, with some firms adjusting price targets upward while others have taken a more cautious stance and reduced their targets.PENG: Updated Guidance And AI Partnerships Will Shape Balanced Risk Profile
Penguin Solutions' analyst price target has moved modestly higher to approximately $28.71 from about $28.25, as analysts update their models around new revenue growth, margin, discount rate, and forward P/E assumptions following mixed target changes from firms raising and lowering their views. Analyst Commentary Street research around Penguin Solutions reflects a mix of optimism and caution, with some analysts lifting their targets by about $2 and others trimming by around $3.Solid Earnings Reflect Penguin Solutions' (NASDAQ:PENG) Strength As A Business
Even though Penguin Solutions, Inc. ( NASDAQ:PENG ) posted strong earnings, investors appeared to be underwhelmed. We...AI And Digital Transformation Will Drive Global Data Center Success
Peguin Solutions’ fair value price target has been raised from $27.13 to $28.25 per share. Analysts cite stronger memory demand, improved pricing, and early momentum in commercial and sovereign AI opportunities as key drivers behind their more optimistic outlook.Why Investors Shouldn't Be Surprised By Penguin Solutions, Inc.'s (NASDAQ:PENG) Low P/S
With a price-to-sales (or "P/S") ratio of 0.8x Penguin Solutions, Inc. ( NASDAQ:PENG ) may be sending very bullish...Is There An Opportunity With Penguin Solutions, Inc.'s (NASDAQ:PENG) 31% Undervaluation?
Key Insights Penguin Solutions' estimated fair value is US$29.64 based on 2 Stage Free Cash Flow to Equity Penguin...Is Now An Opportune Moment To Examine Penguin Solutions, Inc. (NASDAQ:PENG)?
Penguin Solutions, Inc. ( NASDAQ:PENG ), might not be a large cap stock, but it received a lot of attention from a...
Channel Partnerships And AI Deployments Will Open New Opportunities
Expanding channel partnerships and AI infrastructure focus positions Penguin Solutions well for future revenue growth and market capitalization.Penguin Solutions, Inc.'s (NASDAQ:PENG) Prospects Need A Boost To Lift Shares
With a price-to-sales (or "P/S") ratio of 0.8x Penguin Solutions, Inc. ( NASDAQ:PENG ) may be sending very bullish...Financial Position Analysis
Short Term Liabilities: PENG's short term assets ($1.7B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: PENG's short term assets ($1.7B) exceed its long term liabilities ($414.9M).
Debt to Equity History and Analysis
Debt Level: PENG's net debt to equity ratio (0.4%) is considered satisfactory.
Reducing Debt: PENG's debt to equity ratio has reduced from 130.6% to 67.5% over the past 5 years.
Debt Coverage: PENG's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: PENG's interest payments on its debt are well covered by EBIT (78.2x coverage).
Balance Sheet
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/07/16 11:37 |
| End of Day Share Price | 2026/07/16 00:00 |
| Earnings | 2026/05/29 |
| Annual Earnings | 2025/08/29 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Penguin Solutions, Inc. is covered by 14 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Thomas O'Malley | Barclays |
| Rustam Kanga | Citizens JMP Securities, LLC |
| Shek Ho | Deutsche Bank |