Penguin Solutions, Inc. (PENG) Fair Value & Analysis
Technology · US · Market cap $3.1B · ISIN KYG8232Y1017
What is Penguin Solutions, Inc. really worth?
Penguin Solutions, Inc.
PENG · US
A solid business, but trading 313% above our fair value of $11.79.
Strengths
Risks
Fair value as of: Sep 3, 2026
From 26 valuation models · updated yesterday
Share price −15.9% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($14.74). The favourable scenario is already priced in.
- Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.
How to read this chart
60‑month range $12.63 – $81.39 · fair‑value band $8.84 – $14.74 · the $48.63 price screens above the $11.79 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 3, 2026.
Analysis
Penguin Solutions, Inc. (PENG) currently trades at $48.63, while our model-based Fair Value estimate is $11.79, implying the stock looks roughly 312.5% overvalued today. The Quality Score stands at 62/100 (solid quality), in the Technology sector. Bull case: the Growth DCF group reads highest at a median of $23.30 per share, and 0 of the 26 models we run sit above the $48.63 price. Bear case: the Dividend Discount group reads lowest at $2.10, and 26 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Penguin Solutions, Inc. generated revenue of $1.3B at a net margin of 4.1%. Revenue declined 6.2% year over year. It earns a return on equity of 9.6%. Net debt stands at $279M. Fundamentals as of Sep 3, 2026
Our scenario range runs from $8.84 (bear case) to $14.74 (bull case); at $48.63, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 34% below its 52-week high and 203% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at 69% fair-value upside, at −76%, PENG screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly $0.7000 per share, which is 5.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: Growth DCF ($23.30) versus Dividend Discount ($2.10). Highest evidence: FCF DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 61 · Market factors (momentum, volatility) 50
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Penguin Solutions, Inc. designs, builds, deploys and manages enterprise solutions worldwide. The company operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED.
Full company description
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 high-performance computing and AI solutions under the Penguin Solutions, Penguin Computing, Stratus, and Penguin Edge brands. 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 other 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 module form factors; and multimediacard and embedded and removable USB products, and SD and microSD Card configurations, as well as 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, enterprise, government, and other end customers through direct and third-party channels. The company has a collaboration with Deepgram and Dell Technologies. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Penguin Solutions, Inc. reported revenue of $1.4B in FY2025 versus $1.1B in FY2021, a compound +6.7%/yr. Reported net income was $21.6M in FY2025, compounding +0.3%/yr from FY2021.
PENG screens 313% overvalued. Compare with International Business Machines Corporation →
Peer Group
Information Technology Services · 486 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Information Technology Services median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Insider activity: 44/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Sep 3, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| International Business Machines Corporation IBM | $235.59 | $175.76 | −25% |
| Accenture plc ACN | $189.61 | $334.27 | +76% |
| Tata Consultancy Services Limited TCS | ₹2,302 | ₹3,473 | +51% |
| Infosys Limited INFY | ₹1,156 | ₹1,958 | +69% |
| HCL Technologies Limited HCLTECH | ₹1,282 | ₹1,722 | +34% |
| Fiserv, Inc FI | C$5.13 | C$8.07 | +57% |
| Wipro Limited WIT | $1.83 | $3.51 | +92% |
| Fidelity National Information Services, Inc FIS | $41.34 | $19.28 | −53% |
| Cognizant Technology Solutions Corporation CTSH | $64.04 | $132.01 | +106% |
| Capgemini SE CAP | €109.45 | €222.79 | +104% |
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