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Earnings transcript
Read the complete earnings call transcript.
PENG
PENG
Penguin Solutions, Inc.
$76.28
4.71
(6.58%)
| Exchange: | NASDAQ |
| Market Cap: | 3.909B |
| Shares Outstanding: | 41.415M |
Delayed data
About The Company
| Sector: | TechnologyView sector performance | |||||
| Industry: | SemiconductorsView industry performance | |||||
| CEO: | Kash Shaikh | |||||
| Full Time Employees: | 2900 | |||||
| Address: |
| |||||
| Website: | https://www.penguinsolutions.com |
Penguin Solutions, Inc. is a global technology company focused on designing and delivering advanced enterprise solutions. Its business operations are segmented into three primary divisions: Advanced Computing, Integrated Memory, and Optimized LED. Within its Integrated Memory segment, the company supplies sophisticated memory solutions, including dynamic random access memory (DRAM) modules, solid-state drives (SSDs), and flash storage. These offerings cater to demanding applications in networking, telecommunications, data analytics, and artificial intelligence/machine learning. This segment also provides comprehensive supply chain management services, encompassing procurement, logistics, inventory control, temporary warehousing, programming, kitting, and packaging. The Advanced Computing division features several key product lines. Penguin Computing delivers specialized technical computing for core data centers and cloud environments, focusing on high-performance computing (HPC) and AI solutions. Penguin Edge offers robust edge computing tailored for embedded and wireless applications, serving critical sectors such as government, healthcare, manufacturing, and telecommunications. Moreover, the Stratus brand provides inherently fault-tolerant computing solutions—combining hardware and software—that are simplified, protected, and autonomous for both data center and edge deployments, supporting industries like education, energy, financial services, government, hyperscale, and manufacturing. The Optimized LED segment produces advanced LED components under the Cree LED brand, including blue and green gallium nitride-based LED chips and associated materials. It also manufactures surface mount devices (SMDs) under the Cree LED XLamp and J Series brands. Penguin Solutions reaches its diverse clientele, which includes original equipment manufacturers (OEMs), enterprise clients, government entities, and other end-users, through a multi-channel sales approach. This includes a direct sales force, e-commerce platforms, customer service teams, on-site field application engineers, independent sales representatives, distributors, integrators, and resellers. Founded in 1988 and headquartered in Grand Cayman, Cayman Islands, the company will officially adopt the name Penguin Solutions, Inc. in October 2024, having previously operated as SMART Global Holdings, Inc.
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Revenue Segmentation
PENG full analysis
Hey everyone, welcome back to MarketSnap. Penguin Solutions just reported a quarter that sent the stock up sharply, with net income jumping nearly 900% and revenue hitting a record. But here's the thing — the stock is still well below its all-time high, and our valuation model says it might be trading above what the fundamentals justify. So we're going to dig into the numbers, run through the full analysis, and figure out whether this AI infrastructure play has more…
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 1,170,796 | 1,368,794 | 1,731,468 |
| Gross Profit | 342,912 | 394,274 | 478,925 |
| EBITDA | 62,927 | 112,422 | 152,411.176 |
| Operating Income | 18,295 | 74,198 | 165,596 |
| Net Income | -52,472 | 21,576 | 180,615 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Total Assets | 1,474,506 | 1,617,200 | 2,778,134 |
| Total Liabilities | 1,075,298 | 1,008,973 | 2,038,238 |
| Total Stockholders Equity | 391,381 | 595,956 | 520,742 |
| Total Debt | 717,889 | 524,574 | 793,428 |
| Cash and Cash Equivalents | 383,147 | 453,754 | 647,208 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Operating Cash Flow | 77,185 | 109,084 | -151,914 |
| Capital Expenditure | -19,424 | -9,012 | 0 |
| Free Cash Flow | 57,761 | 100,072 | -151,914 |
| Net Income | -44,324 | 28,835 | 180,615 |
| Net Change in Cash | -26,587 | 70,607 | 0 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2029 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 3,296,437.804 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 3,462,291.031 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 3,362,697 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 451,905.808 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 479,506.903 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 465,706.355 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 372,568.143 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 397,084.639 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 384,826.391 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 546,358.225 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 573,847.072 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 557,340.157 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 6.500 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 6.750 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 6.330 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 1 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 1 | Research Access | Research Access | Research Access | Research Access |
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Current Key Metrics
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Login — it's freeSWOT Analysis
Strengths (preview)
- Profitability metrics indicate strong operational efficiency, with ROE and ROIC (TTM) suggesting effective capital allocation and shareholder value creation relative to the industry.
- Liquidity position is robust, evidenced by a current ratio and quick ratio (TTM) above 1.0, providing a buffer against short-term obligations and operational disruptions.
- Free cash flow yield (TTM) is positive, indicating the company generates sufficient cash to fund operations, potential dividends, and reinvestment without heavy reliance on external financing.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MarketSnap estimates PENG intrinsic value between $94.50 – $197.55 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
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Common questions about PENG valuation
Is Penguin Solutions, Inc. (PENG) overvalued or undervalued right now?
MarketSnap estimates intrinsic value for Penguin Solutions, Inc. (PENG) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is PENG a buy, hold, or sell for long-term investors?
MarketSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether PENG trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is PENG’s P/E ratio?
You can see PENG’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for PENG?
MarketSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MarketSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is PENG a good long-term investment?
Whether PENG fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MarketSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
PENG
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Daily snapshot
6.58
Trading Metrics:
| Open: | 77.99 | Previous Close: | 71.57 | |
| Day Low: | 70.75 | Day High: | 78.75 | |
| Year Low: | 16.04 | Year High: | 89.86 | |
| Price Avg 50: | 54.69 | Price Avg 200: | 40.68 | |
| Volume: | 5.785M | Average Volume: | 3.174M |
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