Penguin SolutionsPENG +25.14%69 Debt-to-Equity is 0.78 as of May. 2026, which is 38% below its 10-year median of 1.25. GuruFocus rates PENG with a GF Score™ of 69/100 and a GF Value™ of $24.33 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,239 Software companies, Penguin Solutions ranks worse than 81.73% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Penguin Solutions's Debt-to-Equity or its related term are showing as below:
PENG'
s Debt-to-Equity Range Over the Past 10 Years
Min: -196.2 Med: 1.25 Max: 10.38
Current: 0.84
During the past 11 years, the highest Debt-to-Equity Ratio of Penguin Solutions was 10.38. The lowest was -196.20. And the median was 1.25.
PENG's Debt-to-Equity is ranked worse than 81.73% of 2239
companies
in the Software industry
Industry Median: 0.19
vs PENG: 0.84
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Penguin Solutions Debt-to-Equity Related Terms
Penguin Solutions Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Penguin Solutions's Debt-to-Equity 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 Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's Debt-to-Equity 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 Debt-to-Equity of 0.78 as of May. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Penguin Solutions and its competitors. This is 38% below median its historical median of 1.25. According to the industry distribution chart, Penguin Solutions ranks #1830 out of 2239 companies in the Software industry, placing it in the top 81.7%.
Is Penguin Solutions' Debt-to-Equity too high?
Penguin Solutions' current Debt-to-Equity of 0.78 is 38% below median its 10-year median of 1.25. The Software industry median Debt-to-Equity is 0.19. Penguin Solutions' value of 0.78 is 310.5% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1830 out of 2239 companies in the Software industry, which is in the bottom quartile relative to peers. 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' Debt-to-Equity compare to CHRN and PONY?
According to the Software industry distribution chart, Penguin Solutions ranks #1830 out of 2239 companies for Debt-to-Equity. This places Penguin Solutions in the lower half of its industry. The industry median Debt-to-Equity is 0.19. Penguin Solutions' value of 0.78 is 310.5% above this benchmark. While the company's 10-year median is 1.25 vs. the industry median of 0.19, 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 Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.19, based on 2,239 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current Debt-to-Equity of 0.78 is 310.5% 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Penguin Solutions and its competitors. For the Software industry, the median Debt-to-Equity is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current Debt-to-Equity is 0.78, which is 38% below median its own 10-year median of 1.25. 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 $24.33, compared to a current price of $78.47 — trading 222.5% above its estimated fair value. The current Debt-to-Equity is 0.78, which is 38% below median its 10-year median of 1.25 and 310.5% above the Software industry median of 0.19. 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 Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Penguin Solutions (PENG), the current Debt-to-Equity is 0.78 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 $78.47 is trading 222.5% above its estimated GF Value™ of $24.33.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
Debt-to-Equity: 0.78 (38% below median its 10-year median of 1.25)
GF Value™: $24.33 vs. price of $78.47 (222.5% above fair value)
Industry Position: 310.5% above the Software median (#1830 of 2239)
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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