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PENG (Penguin Solutions) Operating Margin % : 6.72% (As of Feb. 2025)


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What is Penguin Solutions Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Penguin Solutions's Operating Income for the three months ended in Feb. 2025 was $25 Mil. Penguin Solutions's Revenue for the three months ended in Feb. 2025 was $366 Mil. Therefore, Penguin Solutions's Operating Margin % for the quarter that ended in Feb. 2025 was 6.72%.

Warning Sign:

Penguin Solutions Inc operating margin has been in a 5-year decline. The average rate of decline per year is -15.3%.

The historical rank and industry rank for Penguin Solutions's Operating Margin % or its related term are showing as below:

PENG' s Operating Margin % Range Over the Past 10 Years
Min: -0.87   Med: 3.81   Max: 12.97
Current: 4.73


PENG's Operating Margin % is ranked better than
53.13% of 2767 companies
in the Software industry
Industry Median: 3.81 vs PENG: 4.73

Penguin Solutions's 5-Year Average Operating Margin % Growth Rate was -15.30% per year.

Penguin Solutions's Operating Income for the three months ended in Feb. 2025 was $25 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2025 was $62 Mil.


Penguin Solutions Operating Margin % Historical Data

The historical data trend for Penguin Solutions's Operating 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.

* Premium members only.

Penguin Solutions Operating Margin % Chart

Penguin Solutions Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.68 1.58 7.77 3.94 1.56

Penguin Solutions Quarterly Data
May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25
Operating Margin % 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 -1.16 3.83 2.83 5.12 6.72

Competitive Comparison of Penguin Solutions's Operating Margin %

For the Information Technology Services subindustry, Penguin Solutions's Operating Margin %, along with its competitors' market caps and Operating 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's Operating Margin % Distribution in the Software Industry

For the Software industry and Technology sector, Penguin Solutions's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Penguin Solutions's Operating Margin % falls into.


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Penguin Solutions Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Penguin Solutions's Operating Margin % for the fiscal year that ended in Aug. 2024 is calculated as

Operating Margin %=Operating Income (A: Aug. 2024 ) / Revenue (A: Aug. 2024 )
=18.295 / 1170.796
=1.56 %

Penguin Solutions's Operating Margin % for the quarter that ended in Feb. 2025 is calculated as

Operating Margin %=Operating Income (Q: Feb. 2025 ) / Revenue (Q: Feb. 2025 )
=24.567 / 365.519
=6.72 %

* 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  (NAS:PENG) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Penguin Solutions Operating Margin % Related Terms

Thank you for viewing the detailed overview of Penguin Solutions's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


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