Penguin SolutionsPENG -3.32%71 Net Margin % is 10.92% as of Feb. 2026, which is 1141% above its 10-year median of 0.88. 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 2,825 Software companies, Penguin Solutions ranks better than 55.19% on this metric.
The historical rank and industry rank for Penguin Solutions's Net Margin % or its related term are showing as below:
PENG'
s Net Margin % Range Over the Past 10 Years
Min: -13.01 Med: 0.88 Max: 9.27
Current: 4.07
PENG's Net Margin % is ranked better than 55.19% of 2825
companies
in the Software industry
Industry Median: 2.54
vs PENG: 4.07
Penguin Solutions (NAS:PENG) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Penguin Solutions Net Margin % Related Terms
Penguin Solutions Net Margin % Historical Data
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The historical data trend for Penguin Solutions's Net 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.
For the Information Technology Services subindustry, Penguin Solutions's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Net Margin % distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's Net 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 (PENG) has a Net Margin % of 10.92% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on Penguin Solutions and its competitors. This is 1141% above median its historical median of 0.88. According to the industry distribution chart, Penguin Solutions ranks #1266 out of 2825 companies in the Software industry, placing it in the top 44.8%.
Is Penguin Solutions' Net Margin % too high?
Penguin Solutions' current Net Margin % of 10.92% is 1141% above median its 10-year median of 0.88. The Software industry median Net Margin % is 2.54. Penguin Solutions' value of 10.92% is 329.9% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1266 out of 2825 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' Net Margin % compare to VNET and KD?
According to the Software industry distribution chart, Penguin Solutions ranks #1266 out of 2825 companies for Net Margin %. This puts Penguin Solutions in the upper half of its industry. The industry median Net Margin % is 2.54. Penguin Solutions' value of 10.92% is 329.9% above this benchmark. While the company's 10-year median is 0.88 vs. the industry median of 2.54, 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current Net Margin % of 10.92% is 329.9% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Penguin Solutions and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current Net Margin % is 10.92%, which is 1141% above median its own 10-year median of 0.88. 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 Net Margin % is 10.92%, which is 1141% above median its 10-year median of 0.88 and 329.9% above the Software industry median of 2.54. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Penguin Solutions (PENG), the current Net Margin % is 10.92% 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 $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:
Net Margin %: 10.92% (1141% above median its 10-year median of 0.88)
GF Value™: $23.82 vs. price of $64.72 (171.7% above fair value)
Industry Position: 329.9% above the Software median (#1266 of 2825)
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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