Penguin SolutionsPENG -3.32%71 FCF Yield % is 3.02 as of Jun. 25, 2026, which is 61% below its 10-year median of 7.80. GuruFocus rates PENG with a GF Score™ of 71/100 and a GF Value™ of $23.82 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,867 Software companies, Penguin Solutions ranks better than 59.82% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Penguin Solutions FCF Yield % Related Terms
Penguin Solutions FCF Yield % Historical Data
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The historical data trend for Penguin Solutions's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's FCF Yield % 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 FCF Yield % of 3.02 as of Jun. 25, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Penguin Solutions and its competitors. This is 61% below median its historical median of 7.80. According to the industry distribution chart, Penguin Solutions ranks #1152 out of 2867 companies in the Software industry, placing it in the top 40.2%.
Is Penguin Solutions' FCF Yield % too high?
Penguin Solutions' current FCF Yield % of 3.02 is 61% below median its 10-year median of 7.80. The Software industry median FCF Yield % is 0.86. Penguin Solutions' value of 3.02 is 251.2% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1152 out of 2867 companies in the Software industry, which is above the industry midpoint. 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' FCF Yield % compare to VNET and KD?
According to the Software industry distribution chart, Penguin Solutions ranks #1152 out of 2867 companies for FCF Yield %. This puts Penguin Solutions in the upper half of its industry. The industry median FCF Yield % is 0.86. Penguin Solutions' value of 3.02 is 251.2% above this benchmark. While the company's 10-year median is 7.80 vs. the industry median of 0.86, 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 FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.86, based on 2,867 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current FCF Yield % of 3.02 is 251.2% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Penguin Solutions and its competitors. For the Software industry, the median FCF Yield % is 0.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current FCF Yield % is 3.02, which is 61% below median its own 10-year median of 7.80. 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 $23.82, compared to a current price of $64.72 — trading 171.7% above its estimated fair value. The current FCF Yield % is 3.02, which is 61% below median its 10-year median of 7.80 and 251.2% above the Software industry median of 0.86. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Penguin Solutions (PENG), the current FCF Yield % is 3.02 as of Jun. 25, 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 $64.72 is trading 171.7% above its estimated GF Value™ of $23.82.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
FCF Yield %: 3.02 (61% below median its 10-year median of 7.80)
GF Value™: $23.82 vs. price of $64.72 (171.7% above fair value)
Industry Position: 251.2% above the Software median (#1152 of 2867)
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.
71GF Score
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