Penguin SolutionsPENG -3.58%71 Interest Coverage is 35.63 as of Feb. 2026, which is 1442% above its 10-year median of 2.31. 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 1,705 Software companies, Penguin Solutions ranks better than 60.53% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Penguin Solutions's
Operating Income
for the
three
months ended in Feb. 2026 was $26 Mil. Penguin Solutions's Interest Expense for the
three
months ended in Feb. 2026 was $-1 Mil.
Penguin Solutions's interest coverage for the quarter that ended in Feb. 2026 was 35.63.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Penguin Solutions's Interest Coverage or its related term are showing as below:
PENG'
s Interest Coverage Range Over the Past 10 Years
Min: 0.29 Med: 2.31 Max: 54.38
Current: 54.38
PENG's Interest Coverage is ranked better than 60.53% of 1705
companies
in the Software industry
Industry Median: 24.67
vs PENG: 54.38
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Penguin Solutions Interest Coverage Related Terms
Penguin Solutions Interest Coverage Historical Data
* Premium members only.
The historical data trend for Penguin Solutions's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
PENG vs VNET, KD, CHRN: Interest Coverage Comparison
For the Information Technology Services subindustry, Penguin Solutions's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 35.63 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Penguin Solutions and its competitors. This is 1442% above median its historical median of 2.31. Over the past decade, Penguin Solutions' Interest Coverage has ranged from 0.29 to 54.38. According to the industry distribution chart, Penguin Solutions ranks #673 out of 1705 companies in the Software industry, placing it in the top 39.5%.
Is Penguin Solutions' Interest Coverage too high?
Penguin Solutions' current Interest Coverage of 35.63 is 1442% above median its 10-year median of 2.31. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 54.38. The Software industry median Interest Coverage is 24.67. Penguin Solutions' value of 35.63 is 44.4% above this industry median. Based on the distribution chart, Penguin Solutions ranks #673 out of 1705 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' Interest Coverage compare to VNET and KD?
According to the Software industry distribution chart, Penguin Solutions ranks #673 out of 1705 companies for Interest Coverage. This puts Penguin Solutions in the upper half of its industry. The industry median Interest Coverage is 24.67. Penguin Solutions' value of 35.63 is 44.4% above this benchmark. Historically, Penguin Solutions' own Interest Coverage has ranged from 0.29 to 54.38 over the past decade. While the company's 10-year median is 2.31 vs. the industry median of 24.67, 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.67, based on 1,705 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current Interest Coverage of 35.63 is 44.4% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Penguin Solutions and its competitors. For the Software industry, the median Interest Coverage is 24.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current Interest Coverage is 35.63, which is 1442% above median its own 10-year median of 2.31. 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 $62.40 — trading 162% above its estimated fair value. The current Interest Coverage is 35.63, which is 1442% above median its 10-year median of 2.31 and 44.4% above the Software industry median of 24.67. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Penguin Solutions (PENG), the current Interest Coverage is 35.63 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 $62.40 is trading 162% above its estimated GF Value™ of $23.82.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
Interest Coverage: 35.63 (1442% above median its 10-year median of 2.31)
GF Value™: $23.82 vs. price of $62.40 (162% above fair value)
Industry Position: 44.4% above the Software median (#673 of 1705)
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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