PENG (Penguin Solutions) ROCE %: 18.68% (As of Feb. 2026)

What is Penguin Solutions ROCE %?

Penguin Solutions PENG -3.32% 71 ROCE % is 18.68% as of Feb. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Penguin Solutions's annualized ROCE % for the quarter that ended in Feb. 2026 was 18.68%.

Penguin Solutions (NAS:PENG) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Penguin Solutions ROCE % Related Terms

Penguin Solutions ROCE % Historical Data

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The historical data trend for Penguin Solutions's ROCE % 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.

Penguin Solutions ROCE % Chart

Penguin Solutions Annual Data

Trend

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Aug24

Aug25

ROCE %

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-2.39

7.35

-0.29

-0.25

4.91

Penguin Solutions Quarterly Data
	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25	May25	Aug25	Nov25	Feb26
ROCE %	Get a 7-Day Free Trial															6.00	3.39	3.08	2.77	18.68

71GF Score

Penguin Solutions Inc PENG

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Penguin Solutions ROCE % Calculation

Penguin Solutions's annualized ROCE % for the fiscal year that ended in Aug. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2025 )		(A: Aug. 2024 )		(A: Aug. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2025 )		(A: Aug. 2024 )		(A: Aug. 2025 )
	=	56.206	/	( ( (1474.506 - 327.596)	+	(1617.2 - 473.899) )	/ 2 )
	=	56.206	/	( (1146.91	+	1143.301)	/ 2 )
	=	56.206	/	1145.1055
	=	4.91 %

Penguin Solutions's ROCE % of for the quarter that ended in Feb. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	214.688	/	( ( (1598.195 - 458.11)	+	(1749.757 - 590.694) )	/ 2 )
	=	214.688	/	( ( 1140.085	+	1159.063 )	/ 2 )
	=	214.688	/	1149.574
	=	18.68 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 18.68% mean?

Penguin Solutions (PENG) has a ROCE % of 18.68% as of Feb. 2026.

Is Penguin Solutions' ROCE % too high?

Penguin Solutions' current ROCE % is 18.68%. The Software industry median ROCE % is 5.27. Penguin Solutions' value of 18.68% is 254.5% above this industry median. 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' ROCE % compare to VNET and KD?

Penguin Solutions' ROCE % of 18.68% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. Penguin Solutions' value of 18.68% is 254.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Software company?

The median ROCE % among Software companies is 5.27, based on 2,711 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current ROCE % of 18.68% is 254.5% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current ROCE % is 18.68%. 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 ROCE % is 18.68% and 254.5% above the Software industry median of 5.27. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Penguin Solutions (PENG), the current ROCE % is 18.68% 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:

ROCE %: 18.68%
GF Value™: $23.82 vs. price of $64.72 (171.7% above fair value)
GF Score™: 71/100 with 5 warning signs
Industry Position: 254.5% above the Software median

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 Business Description

Industry Technology Software

Comparable Companies VNET KD CHRN BBAI INOD GLOB CNXC DXC CLVT PONY IBM ACN NSE:TCS NSE:INFY TSE:6702 TSE:6701 NSE:HCLTECH FISV XMAD:AMS CTSH

Other Exchanges 88E:Germany

Address 1390 McCarthy Boulevard, Milpitas, CA, USA, 94560

Website https://www.penguinsolutions.com

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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$64.72

Price

$23.82

GF Value

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