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Penguin SolutionsFRA:88E +21.58%69 EBITDA Margin % is 13.92% as of May. 2026, which is 79% above its 10-year median of 7.77. 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 2,826 Software companies, Penguin Solutions ranks better than 60.23% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Penguin Solutions's EBITDA for the
three
months ended in May. 2026 was €57 Mil. Penguin Solutions's Revenue for the
three
months ended in May. 2026 was €410 Mil. Therefore, Penguin Solutions's EBITDA margin for the quarter that ended in May. 2026 was 13.92%.
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Penguin Solutions EBITDA Margin % Related Terms
Penguin Solutions EBITDA Margin % Historical Data
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The historical data trend for Penguin Solutions's EBITDA Margin % 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: EBITDA Margin % Comparison
For the Information Technology Services subindustry, Penguin Solutions's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's EBITDA Margin % 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 EBITDA Margin % of 13.92% as of May. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Penguin Solutions and its competitors. This is 79% above median its historical median of 7.77. Over the past decade, Penguin Solutions' EBITDA Margin % has ranged from 1.88 to 14.21. According to the industry distribution chart, Penguin Solutions ranks #1124 out of 2826 companies in the Software industry, placing it in the top 39.8%.
Is Penguin Solutions' EBITDA Margin % too high?
Penguin Solutions' current EBITDA Margin % of 13.92% is 79% above median its 10-year median of 7.77. Over the past 10 years, this metric has ranged from a low of 1.88 to a high of 14.21. The Software industry median EBITDA Margin % is 8.13. Penguin Solutions' value of 13.92% is 71.2% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1124 out of 2826 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' EBITDA Margin % compare to KD and PONY?
According to the Software industry distribution chart, Penguin Solutions ranks #1124 out of 2826 companies for EBITDA Margin %. This puts Penguin Solutions in the upper half of its industry. The industry median EBITDA Margin % is 8.13. Penguin Solutions' value of 13.92% is 71.2% above this benchmark. Historically, Penguin Solutions' own EBITDA Margin % has ranged from 1.88 to 14.21 over the past decade. While the company's 10-year median is 7.77 vs. the industry median of 8.13, 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 EBITDA Margin % for a Software company?
The median EBITDA Margin % among Software companies is 8.13, based on 2,826 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current EBITDA Margin % of 13.92% is 71.2% 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 EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Penguin Solutions and its competitors. For the Software industry, the median EBITDA Margin % is 8.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current EBITDA Margin % is 13.92%, which is 79% above median its own 10-year median of 7.77. 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 EBITDA Margin % is 13.92%, which is 79% above median its 10-year median of 7.77 and 71.2% above the Software industry median of 8.13. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Penguin Solutions (FRA:88E), the current EBITDA Margin % is 13.92% 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:
EBITDA Margin %: 13.92% (79% above median its 10-year median of 7.77)
GF Value™: €23.37 vs. price of €45.63 (95.3% above fair value)
Industry Position: 71.2% above the Software median (#1124 of 2826)
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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