PENG (Penguin Solutions) Effective Interest Rate on Debt %: 0.56% (As of Feb. 2026)


PENG Penguin Solutions Inc PENG
71 GF Score
Price $76.03
GF Value $23.84
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Penguin Solutions Effective Interest Rate on Debt %?

Penguin Solutions PENG +11.96% 71 Effective Interest Rate on Debt % is 0.56% as of Feb. 2026. GuruFocus rates PENG with a GF Score™ of 71/100 and a GF Value™ of $23.84 (Significantly Overvalued). The stock has 5 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Penguin Solutions's annualized positive value of Interest Expense for the quarter that ended in Feb. 2026 was $3 Mil. Penguin Solutions's average total debt for the quarter that ended in Feb. 2026 was $514 Mil. Therefore, Penguin Solutions's annualized Effective Interest Rate on Debt % for the quarter that ended in Feb. 2026 was 0.56%.

Penguin Solutions  (NAS:PENG) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Penguin Solutions Effective Interest Rate on Debt % Related Terms

Penguin Solutions Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Penguin Solutions's Effective Interest Rate on 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.

Penguin Solutions Effective Interest Rate on Debt % Chart

Penguin Solutions Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.58 4.64 4.83 3.60 1.18

Penguin Solutions Quarterly Data
May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.22 0.32 0.10 0.04 0.56

PENG vs CHRN, PONY, KD: Effective Interest Rate on Debt % Comparison

For the Information Technology Services subindustry, Penguin Solutions's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on 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 Effective Interest Rate on Debt % vs Software Industry

For the Software industry and Technology sector, Penguin Solutions's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Penguin Solutions's Effective Interest Rate on Debt % falls into.


PENG
71GF Score
Penguin Solutions Inc PENG
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Penguin Solutions Effective Interest Rate on Debt % Calculation

Penguin Solutions's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Aug. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Aug. 2024 )+Total Debt  (A: Aug. 2025 ))/ count )
=-1  *  -7.305/( (717.889+524.574)/ 2 )
=-1  *  -7.305/621.2315
=1.18 %

where

Total Debt  (A: Aug. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=717.889 + 0
=717.889

Total Debt  (A: Aug. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=504.629 + 19.945
=524.574

Penguin Solutions's annualized Effective Interest Rate on Debt % for the quarter that ended in Feb. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Nov. 2025 )+Total Debt  (Q: Feb. 2026 ))/ count )
=-1  *  -2.884/( (523.713+503.528)/ 2 )
=-1  *  -2.884/513.6205
=0.56 %

where

Total Debt  (Q: Nov. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=503.739 + 19.974
=523.713

Total Debt  (Q: Feb. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=503.528 + 0
=503.528

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Feb. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 0.56% mean?
Penguin Solutions (PENG) has a Effective Interest Rate on Debt % of 0.56% as of Feb. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Penguin Solutions and its competitors.
Is Penguin Solutions' Effective Interest Rate on Debt % too high?
Penguin Solutions' current Effective Interest Rate on Debt % is 0.56%. Overall, Penguin Solutions has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penguin Solutions' Effective Interest Rate on Debt % compare to CHRN and PONY?
Penguin Solutions' Effective Interest Rate on Debt % of 0.56% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Software company?
A good Effective Interest Rate on Debt % depends on the Software industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Penguin Solutions and its competitors. Penguin Solutions's current Effective Interest Rate on Debt % is 0.56%. 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 $23.84, compared to a current price of $76.03 — trading 218.9% above its estimated fair value. The current Effective Interest Rate on Debt % is 0.56%. Penguin Solutions' overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Penguin Solutions (PENG), the current Effective Interest Rate on Debt % is 0.56% as of Feb. 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 $76.03 is trading 218.9% above its estimated GF Value™ of $23.84. GuruFocus considers Penguin Solutions to be Significantly Overvalued.

Key valuation signals for PENG:

  • Effective Interest Rate on Debt %: 0.56%
  • GF Value™: $23.84 vs. price of $76.03 (218.9% above fair value)
  • GF Score™: 71/100 with 5 warning signs

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 Business Description

Other Exchanges 88E:Germany
Address 1390 McCarthy Boulevard, Milpitas, CA, USA, 94560
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.
71GF Score

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$76.03
Price
$23.84
GF Value