Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Penguin SolutionsPENG +3.92%61 Cash-to-Debt is 0.88 as of May. 2026, which is 60% above its 10-year median of 0.55. GuruFocus rates PENG with a GF Score™ of 61/100 and a GF Value™ of $23.51 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,848 Software companies, Penguin Solutions ranks worse than 67.03% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Penguin Solutions's cash to debt ratio for the quarter that ended in May. 2026 was 0.88.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Penguin Solutionscouldn't pay off its debt using the cash in hand for the quarter that ended in May. 2026.
The historical rank and industry rank for Penguin Solutions's Cash-to-Debt or its related term are showing as below:
PENG'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.11 Med: 0.55 Max: 1.02
Current: 0.88
During the past 11 years, Penguin Solutions's highest Cash to Debt Ratio was 1.02. The lowest was 0.11. And the median was 0.55.
PENG's Cash-to-Debt is ranked worse than 67.03% of 2848
companies
in the Software industry
Industry Median: 2.555
vs PENG: 0.88
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Penguin Solutions Cash-to-Debt Related Terms
Penguin Solutions Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Penguin Solutions's Cash-to-Debt 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.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Information Technology Services subindustry, Penguin Solutions's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt 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-to-Debt vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's Cash-to-Debt 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-to-Debt of 0.88 as of May. 2026. This is 60% above median its historical median of 0.55. Over the past decade, Penguin Solutions' Cash-to-Debt has ranged from 0.11 to 1.02. According to the industry distribution chart, Penguin Solutions ranks #1909 out of 2848 companies in the Software industry, placing it in the top 67%.
Is Penguin Solutions' Cash-to-Debt too high?
Penguin Solutions' current Cash-to-Debt of 0.88 is 60% above median its 10-year median of 0.55. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 1.02. The Software industry median Cash-to-Debt is 2.56. Penguin Solutions' value of 0.88 is 65.6% below this industry median. Based on the distribution chart, Penguin Solutions ranks #1909 out of 2848 companies in the Software industry, which is below the industry midpoint. Overall, Penguin Solutions has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penguin Solutions' Cash-to-Debt compare to KD and PONY?
According to the Software industry distribution chart, Penguin Solutions ranks #1909 out of 2848 companies for Cash-to-Debt. This places Penguin Solutions in the lower half of its industry. The industry median Cash-to-Debt is 2.56. Penguin Solutions' value of 0.88 is 65.6% below this benchmark. Historically, Penguin Solutions' own Cash-to-Debt has ranged from 0.11 to 1.02 over the past decade. While the company's 10-year median is 0.55 vs. the industry median of 2.56, Penguin Solutions has consistently been below 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-to-Debt for a Software company?
The median Cash-to-Debt among Software companies is 2.56, based on 2,848 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current Cash-to-Debt of 0.88 is 65.6% below 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-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median Cash-to-Debt is 2.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current Cash-to-Debt is 0.88, which is 60% above median its own 10-year median of 0.55. 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 $23.51, compared to a current price of $57.34 — trading 143.9% above its estimated fair value. The current Cash-to-Debt is 0.88, which is 60% above median its 10-year median of 0.55 and 65.6% below the Software industry median of 2.56. Penguin Solutions' overall GF Score™ is 61/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Penguin Solutions (PENG), the current Cash-to-Debt is 0.88 as of May. 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 $57.34 is trading 143.9% above its estimated GF Value™ of $23.51.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
Cash-to-Debt: 0.88 (60% above median its 10-year median of 0.55)
GF Value™: $23.51 vs. price of $57.34 (143.9% above fair value)
Industry Position: 65.6% below the Software median (#1909 of 2848)
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.
61GF Score
Get the complete analysis for PENG
Cash-to-Debt is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PENG has been successfully added to your 
