Penguin SolutionsPENG +10.15%69 Cash Ratio is 0.83 as of Feb. 2026, which is 54% above its 10-year median of 0.54. GuruFocus rates PENG with a GF Score™ of 69/100 and a GF Value™ of $24.05 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,805 Software companies, Penguin Solutions ranks better than 51.3% on this metric.
Penguin Solutions has a Cash Ratio of 0.83. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Penguin Solutions's Cash Ratio or its related term are showing as below:
PENG'
s Cash Ratio Range Over the Past 10 Years
Min: 0.08 Med: 0.54 Max: 1.74
Current: 0.83
During the past 11 years, Penguin Solutions's highest Cash Ratio was 1.74. The lowest was 0.08. And the median was 0.54.
PENG's Cash Ratio is ranked better than 51.3% of 2805
companies
in the Software industry
Industry Median: 0.79
vs PENG: 0.83
Penguin Solutions (NAS:PENG) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Penguin Solutions Cash Ratio Related Terms
Penguin Solutions Cash Ratio Historical Data
* Premium members only.
The historical data trend for Penguin Solutions's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Penguin Solutions's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Penguin Solutions Cash Ratio vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Penguin Solutions (PENG) has a Cash Ratio of 0.83 as of Feb. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Penguin Solutions and its competitors. This is 54% above median its historical median of 0.54. Over the past decade, Penguin Solutions' Cash Ratio has ranged from 0.08 to 1.74. According to the industry distribution chart, Penguin Solutions ranks #1366 out of 2805 companies in the Software industry, placing it in the top 48.7%.
Is Penguin Solutions' Cash Ratio too high?
Penguin Solutions' current Cash Ratio of 0.83 is 54% above median its 10-year median of 0.54. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 1.74. The Software industry median Cash Ratio is 0.79. Penguin Solutions' value of 0.83 is 5.1% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1366 out of 2805 companies in the Software industry, which is above the industry midpoint. Overall, Penguin Solutions has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penguin Solutions' Cash Ratio compare to CHRN and PONY?
According to the Software industry distribution chart, Penguin Solutions ranks #1366 out of 2805 companies for Cash Ratio. This puts Penguin Solutions in the upper half of its industry. The industry median Cash Ratio is 0.79. Penguin Solutions' value of 0.83 is 5.1% above this benchmark. Historically, Penguin Solutions' own Cash Ratio has ranged from 0.08 to 1.74 over the past decade. While the company's 10-year median is 0.54 vs. the industry median of 0.79, Penguin Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Software company?
The median Cash Ratio among Software companies is 0.79, based on 2,805 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current Cash Ratio of 0.83 is 5.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Penguin Solutions and its competitors. For the Software industry, the median Cash Ratio is 0.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current Cash Ratio is 0.83, which is 54% above median its own 10-year median of 0.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Penguin Solutions stock overvalued right now?
Based on GuruFocus' analysis, Penguin Solutions (PENG) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.05, compared to a current price of $67.71 — trading 181.5% above its estimated fair value. The current Cash Ratio is 0.83, which is 54% above median its 10-year median of 0.54 and 5.1% above the Software industry median of 0.79. Penguin Solutions' overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Penguin Solutions (PENG), the current Cash Ratio is 0.83 as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Penguin Solutions (PENG) Overvalued in 2026?
Based on GuruFocus' analysis, Penguin Solutions stock appears to be overvalued.
The current stock price of $67.71 is trading 181.5% above its estimated GF Value™ of $24.05.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
Cash Ratio: 0.83 (54% above median its 10-year median of 0.54)
GF Value™: $24.05 vs. price of $67.71 (181.5% above fair value)
Industry Position: 5.1% above the Software median (#1366 of 2805)
No single metric tells the full story. See the PENG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penguin Solutions Inc is an end-to-end technology company engaged in Intelligent Platform Solutions, Integrated Memory, and Optimized LED business. Its product include Servers, software, OCP HPC & AI system, Racks and Edge. Servers include AMD-based Serves, Intel-based Servers, etc. Software products include Scyld ClusterWare, Scyld Cloud Central, etc. OCP HPC & AI Systems includes OCP Servers & Storage and etc.
69GF Score
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