Penguin SolutionsPENG +11.96%71 ROC (Joel Greenblatt) % is 71.39% as of Feb. 2026, which is 425% above its 10-year median of 13.60. GuruFocus rates PENG with a GF Score™ of 71/100 and a GF Value™ of $23.84 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,805 Software companies, Penguin Solutions ranks better than 54.15% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Penguin Solutions's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 71.39%.
The historical rank and industry rank for Penguin Solutions's ROC (Joel Greenblatt) % or its related term are showing as below:
PENG'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -5.31 Med: 13.6 Max: 74.81
Current: 29
During the past 11 years, Penguin Solutions's highest ROC (Joel Greenblatt) % was 74.81%. The lowest was -5.31%. And the median was 13.60%.
PENG's ROC (Joel Greenblatt) % is ranked better than 54.15% of 2805
companies
in the Software industry
Industry Median: 19.59
vs PENG: 29.00
Penguin Solutions's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Penguin Solutions ROC (Joel Greenblatt) % Related Terms
Penguin Solutions ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Penguin Solutions's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Information Technology Services subindustry, Penguin Solutions's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Feb. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 71.39% mean?
Penguin Solutions (PENG) has a ROC (Joel Greenblatt) % of 71.39% as of Feb. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Penguin Solutions and its competitors. This is 425% above median its historical median of 13.60. According to the industry distribution chart, Penguin Solutions ranks #1286 out of 2805 companies in the Software industry, placing it in the top 45.8%.
Is Penguin Solutions' ROC (Joel Greenblatt) % too high?
Penguin Solutions' current ROC (Joel Greenblatt) % of 71.39% is 425% above median its 10-year median of 13.60. The Software industry median ROC (Joel Greenblatt) % is 19.59. Penguin Solutions' value of 71.39% is 264.4% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1286 out of 2805 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' ROC (Joel Greenblatt) % compare to CHRN and PONY?
According to the Software industry distribution chart, Penguin Solutions ranks #1286 out of 2805 companies for ROC (Joel Greenblatt) %. This puts Penguin Solutions in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 19.59. Penguin Solutions' value of 71.39% is 264.4% above this benchmark. While the company's 10-year median is 13.60 vs. the industry median of 19.59, 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 ROC (Joel Greenblatt) % for a Software company?
The median ROC (Joel Greenblatt) % among Software companies is 19.59, based on 2,805 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current ROC (Joel Greenblatt) % of 71.39% is 264.4% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Penguin Solutions and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 19.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current ROC (Joel Greenblatt) % is 71.39%, which is 425% above median its own 10-year median of 13.60. 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 $23.84, compared to a current price of $76.03 — trading 218.9% above its estimated fair value. The current ROC (Joel Greenblatt) % is 71.39%, which is 425% above median its 10-year median of 13.60 and 264.4% above the Software industry median of 19.59. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Penguin Solutions (PENG), the current ROC (Joel Greenblatt) % is 71.39% 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 $76.03 is trading 218.9% above its estimated GF Value™ of $23.84.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
ROC (Joel Greenblatt) %: 71.39% (425% above median its 10-year median of 13.60)
GF Value™: $23.84 vs. price of $76.03 (218.9% above fair value)
Industry Position: 264.4% above the Software median (#1286 of 2805)
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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