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Penguin SolutionsPENG +5.25%70 3-Year FCF Growth Rate is 5.80% as of May. 2026, which is at its 10-year median of 5.80. GuruFocus rates PENG with a GF Score™ of 70/100 and a GF Value™ of $26.79 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,859 Software companies, Penguin Solutions ranks worse than 61.97% on this metric.
During the past 12 months, Penguin Solutions's average Free Cash Flow per Share Growth Rate was -143.20% per year.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was 5.80% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was -1.80% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
During the past 11 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of Penguin Solutions was 364.30% per year. The lowest was -26.80% per year. And the median was 5.80% per year.
Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.
Penguin Solutions 3-Year FCF Growth Rate Related Terms
PENG vs CHRN, KD, TDTH: 3-Year FCF Growth Rate Comparison
For the Information Technology Services subindustry, Penguin Solutions's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate 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 3-Year FCF Growth Rate vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's 3-Year FCF Growth Rate distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's 3-Year FCF Growth Rate falls into.
This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
Penguin Solutions (PENG) has a 3-Year FCF Growth Rate of 5.80% as of May. 2026. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Penguin Solutions and its competitors. This is near median its historical median of 5.80. According to the industry distribution chart, Penguin Solutions ranks #1152 out of 1859 companies in the Software industry, placing it in the top 62%.
Is Penguin Solutions' 3-Year FCF Growth Rate too high?
Penguin Solutions' current 3-Year FCF Growth Rate of 5.80% is near median its 10-year median of 5.80. The Software industry median 3-Year FCF Growth Rate is 17.00. Penguin Solutions' value of 5.80% is 65.9% below this industry median. Based on the distribution chart, Penguin Solutions ranks #1152 out of 1859 companies in the Software industry, which is below the industry midpoint. Overall, Penguin Solutions has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penguin Solutions' 3-Year FCF Growth Rate compare to CHRN and KD?
According to the Software industry distribution chart, Penguin Solutions ranks #1152 out of 1859 companies for 3-Year FCF Growth Rate. This places Penguin Solutions in the lower half of its industry. The industry median 3-Year FCF Growth Rate is 17.00. Penguin Solutions' value of 5.80% is 65.9% below this benchmark. While the company's 10-year median is 5.80 vs. the industry median of 17.00, 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 3-Year FCF Growth Rate for a Software company?
The median 3-Year FCF Growth Rate among Software companies is 17.00, based on 1,859 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year FCF Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year FCF Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current 3-Year FCF Growth Rate of 5.80% is 65.9% 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 3-Year FCF Growth Rate mean?
A high 3-Year FCF Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Penguin Solutions and its competitors. For the Software industry, the median 3-Year FCF Growth Rate is 17.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current 3-Year FCF Growth Rate is 5.80%, which is near median its own 10-year median of 5.80. 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 $26.79, compared to a current price of $51.16 — trading 91% above its estimated fair value. The current 3-Year FCF Growth Rate is 5.80%, which is near median its 10-year median of 5.80 and 65.9% below the Software industry median of 17.00. Penguin Solutions' overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year FCF Growth Rate calculated?
3-Year FCF Growth Rate is calculated from a company's financial statements. For Penguin Solutions (PENG), the current 3-Year FCF Growth Rate is 5.80% 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 $51.16 is trading 91% above its estimated GF Value™ of $26.79.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
3-Year FCF Growth Rate: 5.80% (near median its 10-year median of 5.80)
GF Value™: $26.79 vs. price of $51.16 (91% above fair value)
Industry Position: 65.9% below the Software median (#1152 of 1859)
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.
70GF Score
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