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PENG (Penguin Solutions) Mohanram G-Score : 4 (As of Nov. 2024)


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What is Penguin Solutions Mohanram G-Score?

Mohanram G-Score is a financial indicator developed by professor Partha Mohanram to help investors find the best investment opportunities in the growth stocks. Companies have higher G-score tends to generate higher return. According to his study, the best growth stocks that have a G-Score greater than 6 tend to beat the market, while those with a G-Score lower than 1 tend to have negative absolute returns.

Thus, the zones of discrimination were as such:

Good or high score = 6, 7, 8
Bad or low score = 0, 1

Penguin Solutions has an G-score of 4.

The historical rank and industry rank for Penguin Solutions's Mohanram G-Score or its related term are showing as below:

PENG' s Mohanram G-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 5
Current: 4

During the past 10 years, the highest Piotroski G-score of Penguin Solutions was 5. The lowest was 2. And the median was 4.


Penguin Solutions Mohanram G-Score Historical Data

The historical data trend for Penguin Solutions's Mohanram G-Score 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.

* Premium members only.

Penguin Solutions Mohanram G-Score Chart

Penguin Solutions Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Mohanram G-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A N/A 4.00 3.00 4.00

Penguin Solutions Quarterly Data
Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24
Mohanram G-Score 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 4.00 3.00 5.00 4.00 4.00

Competitive Comparison of Penguin Solutions's Mohanram G-Score

For the Information Technology Services subindustry, Penguin Solutions's Mohanram G-Score, along with its competitors' market caps and Mohanram G-Score 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's Mohanram G-Score Distribution in the Software Industry

For the Software industry and Technology sector, Penguin Solutions's Mohanram G-Score distribution charts can be found below:

* The bar in red indicates where Penguin Solutions's Mohanram G-Score falls into.



Penguin Solutions Mohanram G-Score Calculation

The calculation of the Mohanram G-score consists of eight criteria. Assign one point for each criterion met, then add up all the points to get the G-Score.

Profitability

Question 1. Return on Assets (ROA)

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. It measures how well a company uses its asset to generate earnings.

Score 1 if ROA > ROA Industry Median, 0 otherwise.

Question 2. Cash ROA

Cash ROA equals to Cash Flow from Operations divided by average Total Assets. It measures how well a company uses its asset to generate cash.

Score 1 if Cash ROA > Cash ROA Industry Median, 0 otherwise.

Question 3. CFO and Net Income

Score 1 if CFO > Net Income, 0 otherwise.

Earnings Predictability

Question 4. Earnings Variability

Earnings Variability is measured as the variance of a firm's ROA in the past five years.

Score 1 if Earnings Variability < Earnings Variability Industry Median, 0 otherwise.

Question 5. Sales Growth Variability

Sales Growth Variability is measured as the 5-year variance in sales growth.

Score 1 if Sales Growth Variability < Sales Growth Variability Industry Median, 0 otherwise.

Accounting Conservatism

Question 6. Research & Development Intensity

Research & Development Intensity is calcualted by Research & Development divided by the beginning Total Assets.

Score 1 if Research & Development Intensity > Research & Development Intensity Industry Median, 0 otherwise.

Question 7. CAPEX Intensity

CAPEX Intensity is calcualted by Capital Expenditure divided by the beginning Total Assets.

Score 1 if CAPEX Intensity > CAPEX Intensity Industry Median, 0 otherwise.

Question 8. Advertising Expenditure Intensity

Advertising Expenditure Intensity is calcualted by Advertising Expenditure divided by the beginning Total Assets. Note that Advertising Expenditure is not reported as a seperate line item for many companies, thus Selling, General, & Admin. Expense is used in this calculation.

Score 1 if Advertising Expenditure Intensity > Advertising Expenditure Intensity Industry Median, 0 otherwise.

* 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.

* Note that all the Industry Median used for comparison in his original research, are substituted with Sector Median due to the limitation of data within certain countries.

Good or high score = 6, 7, 8
Bad or low score = 0, 1

Penguin Solutions has an G-score of 4.

Penguin Solutions  (NAS:PENG) Mohanram G-Score Explanation

Partha Mohanram is the John H. Watson Chair in Value Investing at Rotman and the Acting Vice-Dean of Research Strategy and Resources.

In 2000, he wrote a research paper called "Separating Winners from Losers Among Low Book-to-Market Stocks Using Financial Statement Analysis".

This paper tests whether a strategy based on financial statement analysis of low book-to-market (growth) stocks is successful in differentiating between winners and losers in terms of future stock performance. Based on the research, a strategy based on buying high G-score (6, 7 or 8) firms and shorting low G-score (0 or 1) firms consistently earns significant excess returns. Further, the results do not support a risk based explanation for the book-to-market effect as the strategy returns positive returns in all years, and firms that ex-ante appear less risky have better future returns.

To conclude, one can use a modified fundamental analysis strategy (G-score) to identify mispricing and earn substantial abnormal returns.


Penguin Solutions Mohanram G-Score Related Terms

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Penguin Solutions Business Description

Traded in Other Exchanges
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.
Executives
Joseph Gates Clark officer: President, LED Solutions C/O SMART MODULAR TECHNOLOGIES, INC., 39870 EUREKA DRIVE, NEWARK CA 94560
Jack A Pacheco officer: EVP, COO, Pres, Mem Solutions SMART MODULAR TECHNOLOGIES (WWH), INC., 4211 STARBOARD DRIVE, FREMONT CA 94538
Mark Adams director, officer: President and CEO 834 TERRACE DRIVE, LOS ALTOS CA 94024
Penny Herscher director 1001 RIDDER PARK DRIVE, SAN JOSE CA 95131
Ken Rizvi officer: SVP and CFO 39870 EUREKA DRIVE, NEWARK CA 94560-4809
David C Laurello officer: President - IPS C/O SMART GLOBAL HOLDINGS, INC., 39870 EUREKA DRIVE, NEWARK CA 94560
Anne Kuykendall officer: SVP and Chief Legal Officer C/O SMART MODULAR TECHNOLOGIES, INC., 39870 EUREKA DRIVE, NEWARK CA 94560
Sandeep Nayyar director C/O SMART GLOBAL HOLDINGS, INC., 39870 EUREKA DRIVE, NEWARK CA 94560
Mary G Puma director AXCELIS TECHNOLOGIES INC., 108 CHERRY HILL DRIVE, BEVERLY MA 01915
Thierry Pellegrino officer: SVP, Pres. Spec. Computing C/O SMART MODULAR TECHNOLOGIES, INC., 39870 EUREKA DRIVE, NEWARK CA 94560
Mark D Papermaster director ONE AMD PLACE, SUNNYVALE CA 94088
Claude Demby officer: SVP, Pres. Cree LED C/O SMART MODULAR TECHNOLOGIES, INC., 39870 EUREKA DRIVE, NEWARK CA 94560
Ajay Shah director 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Mukesh Patel director C/O SMART GLOBAL HOLDINGS, INC., 39870 EUREKA DRIVE, NEWARK CA 94560
Silver Lake (offshore) Aiv Gp Iii, Ltd. 10 percent owner C/O SILVER LAKE PARTNERS, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025