Penguin SolutionsPENG -1.02%71 Return-on-Tangible-Asset is 10.32% as of Feb. 2026, which is 1060% above its 10-year median of 0.89. GuruFocus rates PENG with a GF Score™ of 71/100 and a GF Value™ of $23.96 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,883 Software companies, Penguin Solutions ranks better than 56.57% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Penguin Solutions's annualizedNet Income for the quarter that ended in Feb. 2026 was $150 Mil. Penguin Solutions's average total tangible assets for the quarter that ended in Feb. 2026 was $1,451 Mil. Therefore, Penguin Solutions's annualized Return-on-Tangible-Asset for the quarter that ended in Feb. 2026 was 10.32%.
The historical rank and industry rank for Penguin Solutions's Return-on-Tangible-Asset or its related term are showing as below:
PENG'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -14.3 Med: 0.89 Max: 23.2
Current: 3.71
During the past 11 years, Penguin Solutions's highest Return-on-Tangible-Asset was 23.20%. The lowest was -14.30%. And the median was 0.89%.
PENG's Return-on-Tangible-Asset is ranked better than 56.57% of 2883
companies
in the Software industry
Industry Median: 2.02
vs PENG: 3.71
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Penguin Solutions Return-on-Tangible-Asset Related Terms
Penguin Solutions Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Penguin Solutions's Return-on-Tangible-Asset 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.
PENG vs CHRN, PONY, KD: Return-on-Tangible-Asset Comparison
For the Information Technology Services subindustry, Penguin Solutions's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Feb. 2026) net income data.
What does a Return-on-Tangible-Asset of 10.32% mean?
Penguin Solutions (PENG) has a Return-on-Tangible-Asset of 10.32% as of Feb. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Penguin Solutions and its competitors. This is 1060% above median its historical median of 0.89. According to the industry distribution chart, Penguin Solutions ranks #1252 out of 2883 companies in the Software industry, placing it in the top 43.4%.
Is Penguin Solutions' Return-on-Tangible-Asset too high?
Penguin Solutions' current Return-on-Tangible-Asset of 10.32% is 1060% above median its 10-year median of 0.89. The Software industry median Return-on-Tangible-Asset is 2.02. Penguin Solutions' value of 10.32% is 410.9% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1252 out of 2883 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' Return-on-Tangible-Asset compare to CHRN and PONY?
According to the Software industry distribution chart, Penguin Solutions ranks #1252 out of 2883 companies for Return-on-Tangible-Asset. This puts Penguin Solutions in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.02. Penguin Solutions' value of 10.32% is 410.9% above this benchmark. While the company's 10-year median is 0.89 vs. the industry median of 2.02, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.02, based on 2,883 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current Return-on-Tangible-Asset of 10.32% is 410.9% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Penguin Solutions and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current Return-on-Tangible-Asset is 10.32%, which is 1060% above median its own 10-year median of 0.89. 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 $23.96, compared to a current price of $68.11 — trading 184.3% above its estimated fair value. The current Return-on-Tangible-Asset is 10.32%, which is 1060% above median its 10-year median of 0.89 and 410.9% above the Software industry median of 2.02. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Penguin Solutions (PENG), the current Return-on-Tangible-Asset is 10.32% 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 $68.11 is trading 184.3% above its estimated GF Value™ of $23.96.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
Return-on-Tangible-Asset: 10.32% (1060% above median its 10-year median of 0.89)
GF Value™: $23.96 vs. price of $68.11 (184.3% above fair value)
Industry Position: 410.9% above the Software median (#1252 of 2883)
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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