Penguin SolutionsPENG -3.32%71 Quick Ratio is 1.55 as of Feb. 2026, which is 8% above its 10-year median of 1.43. 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 2,864 Software companies, Penguin Solutions ranks worse than 54.5% on this metric.
Penguin Solutions has a quick ratio of 1.55. It generally indicates good short-term financial strength.
The historical rank and industry rank for Penguin Solutions's Quick Ratio or its related term are showing as below:
PENG'
s Quick Ratio Range Over the Past 10 Years
Min: 0.82 Med: 1.43 Max: 2.66
Current: 1.55
During the past 11 years, Penguin Solutions's highest Quick Ratio was 2.66. The lowest was 0.82. And the median was 1.43.
PENG's Quick Ratio is ranked worse than 54.5% of 2864
companies
in the Software industry
Industry Median: 1.7
vs PENG: 1.55
Penguin Solutions (NAS:PENG) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Penguin Solutions Quick Ratio Related Terms
Penguin Solutions Quick Ratio Historical Data
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The historical data trend for Penguin Solutions's Quick Ratio 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 Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Penguin Solutions's Quick Ratio for the fiscal year that ended in Aug. 2025 is calculated as
* 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 Quick Ratio of 1.55 as of Feb. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Penguin Solutions and its competitors. This is near median its historical median of 1.43. Over the past decade, Penguin Solutions' Quick Ratio has ranged from 0.82 to 2.66. According to the industry distribution chart, Penguin Solutions ranks #1561 out of 2864 companies in the Software industry, placing it in the top 54.5%.
Is Penguin Solutions' Quick Ratio too high?
Penguin Solutions' current Quick Ratio of 1.55 is near median its 10-year median of 1.43. Over the past 10 years, this metric has ranged from a low of 0.82 to a high of 2.66. The Software industry median Quick Ratio is 1.70. Penguin Solutions' value of 1.55 is 8.8% below this industry median. Based on the distribution chart, Penguin Solutions ranks #1561 out of 2864 companies in the Software industry, which is below 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' Quick Ratio compare to VNET and KD?
According to the Software industry distribution chart, Penguin Solutions ranks #1561 out of 2864 companies for Quick Ratio. This places Penguin Solutions in the lower half of its industry. The industry median Quick Ratio is 1.70. Penguin Solutions' value of 1.55 is 8.8% below this benchmark. Historically, Penguin Solutions' own Quick Ratio has ranged from 0.82 to 2.66 over the past decade. While the company's 10-year median is 1.43 vs. the industry median of 1.70, Penguin Solutions has consistently been below 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 Quick Ratio for a Software company?
The median Quick Ratio among Software companies is 1.70, based on 2,864 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current Quick Ratio of 1.55 is 8.8% below 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Penguin Solutions and its competitors. For the Software industry, the median Quick Ratio is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current Quick Ratio is 1.55, which is near median its own 10-year median of 1.43. 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 Quick Ratio is 1.55, which is near median its 10-year median of 1.43 and 8.8% below the Software industry median of 1.70. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Penguin Solutions (PENG), the current Quick Ratio is 1.55 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:
Quick Ratio: 1.55 (near median its 10-year median of 1.43)
GF Value™: $23.82 vs. price of $64.72 (171.7% above fair value)
Industry Position: 8.8% below the Software median (#1561 of 2864)
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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