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Penguin Solutions has the Financial Strength Rank of 6.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Penguin Solutions's Interest Coverage for the quarter that ended in May. 2026 was 78.25.
Penguin Solutions's debt to revenue ratio for the quarter that ended in May. 2026 was 0.26.
As of today, Penguin Solutions's Altman Z-Score is 2.50.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Penguin Solutions has the Financial Strength Rank of 6.
Penguin Solutions Financial Strength Related Terms
PENG vs CHRN, PONY, KD: Financial Strength Comparison
For the Information Technology Services subindustry, Penguin Solutions's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Financial Strength distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's Financial Strength 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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Penguin Solutions has a Z-score of 2.50, indicating it is in Grey Zones. This implies that Penguin Solutions is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.5 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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 Financial Strength of 6 as of May. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Penguin Solutions and its competitors. This is near median its historical median of 6.00. Over the past decade, Penguin Solutions' Financial Strength has ranged from 3.00 to 7.00.
Is Penguin Solutions' Financial Strength too high?
Penguin Solutions' current Financial Strength of 6 is near median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 7.00. Overall, Penguin Solutions has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penguin Solutions' Financial Strength compare to CHRN and PONY?
Penguin Solutions' Financial Strength of 6 can be compared against companies in the Software industry. Historically, Penguin Solutions' own Financial Strength has ranged from 3.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Software company?
A good Financial Strength depends on the Software industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Penguin Solutions and its competitors. Penguin Solutions's current Financial Strength is 6, which is near median its own 10-year median of 6.00. 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 $25.41, compared to a current price of $53.16 — trading 109.2% above its estimated fair value. The current Financial Strength is 6, which is near median its 10-year median of 6.00. Penguin Solutions' overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Penguin Solutions (PENG), the current Financial Strength is 6 as of May. 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 $53.16 is trading 109.2% above its estimated GF Value™ of $25.41.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
Financial Strength: 6 (near median its 10-year median of 6.00)
GF Value™: $25.41 vs. price of $53.16 (109.2% above fair value)
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.
70GF Score
Get the complete analysis for PENG
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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