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Penguin SolutionsFRA:88E +21.58%69 Current Ratio is 1.54 as of May. 2026, which is 22% below its 10-year median of 1.98. GuruFocus rates FRA:88E with a GF Score™ of 69/100 and a GF Value™ of €23.37 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,878 Software companies, Penguin Solutions ranks worse than 58.69% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Penguin Solutions's current ratio for the quarter that ended in May. 2026 was 1.54.
Penguin Solutions has a current ratio of 1.54. It generally indicates good short-term financial strength.
The historical rank and industry rank for Penguin Solutions's Current Ratio or its related term are showing as below:
FRA:88E'
s Current Ratio Range Over the Past 10 Years
Min: 1.39 Med: 1.98 Max: 3.3
Current: 1.54
During the past 11 years, Penguin Solutions's highest Current Ratio was 3.30. The lowest was 1.39. And the median was 1.98.
FRA:88E's Current Ratio is ranked worse than 58.69% of 2878
companies
in the Software industry
Industry Median: 1.8
vs FRA:88E: 1.54
Penguin Solutions (FRA:88E) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Penguin Solutions Current Ratio Related Terms
Penguin Solutions Current Ratio Historical Data
* Premium members only.
The historical data trend for Penguin Solutions's Current 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.
FRA:88E vs KD, PONY, CHRN: Current Ratio Comparison
For the Information Technology Services subindustry, Penguin Solutions's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Current Ratio distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's Current 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 (FRA:88E) has a Current Ratio of 1.54 as of May. 2026. This is 22% below median its historical median of 1.98. Over the past decade, Penguin Solutions' Current Ratio has ranged from 1.39 to 3.30. According to the industry distribution chart, Penguin Solutions ranks #1689 out of 2878 companies in the Software industry, placing it in the top 58.7%.
Is Penguin Solutions' Current Ratio too high?
Penguin Solutions' current Current Ratio of 1.54 is 22% below median its 10-year median of 1.98. Over the past 10 years, this metric has ranged from a low of 1.39 to a high of 3.30. The Software industry median Current Ratio is 1.80. Penguin Solutions' value of 1.54 is 14.4% below this industry median. Based on the distribution chart, Penguin Solutions ranks #1689 out of 2878 companies in the Software industry, which is below 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' Current Ratio compare to KD and PONY?
According to the Software industry distribution chart, Penguin Solutions ranks #1689 out of 2878 companies for Current Ratio. This places Penguin Solutions in the lower half of its industry. The industry median Current Ratio is 1.80. Penguin Solutions' value of 1.54 is 14.4% below this benchmark. Historically, Penguin Solutions' own Current Ratio has ranged from 1.39 to 3.30 over the past decade. While the company's 10-year median is 1.98 vs. the industry median of 1.80, 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 Current Ratio for a Software company?
The median Current Ratio among Software companies is 1.80, based on 2,878 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current Current Ratio of 1.54 is 14.4% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median Current Ratio is 1.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current Current Ratio is 1.54, which is 22% below median its own 10-year median of 1.98. 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 (FRA:88E) is currently considered Significantly Overvalued. The stock's GF Value™ is €23.37, compared to a current price of €45.63 — trading 95.3% above its estimated fair value. The current Current Ratio is 1.54, which is 22% below median its 10-year median of 1.98 and 14.4% below the Software industry median of 1.80. 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 Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Penguin Solutions (FRA:88E), the current Current Ratio is 1.54 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 (FRA:88E) Overvalued in 2026?
Based on GuruFocus' analysis, Penguin Solutions stock appears to be overvalued.
The current stock price of €45.63 is trading 95.3% above its estimated GF Value™ of €23.37.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for FRA:88E:
Current Ratio: 1.54 (22% below median its 10-year median of 1.98)
GF Value™: €23.37 vs. price of €45.63 (95.3% above fair value)
Industry Position: 14.4% below the Software median (#1689 of 2878)
No single metric tells the full story. See the FRA:88E 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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