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Penguin Solutions, Inc. (PENG) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Penguin Solutions, Inc.

PENGMarket cap $3.72BPrice $72.6

Country🇺🇸United States

SectorTechnology

IndustrySemiconductors

Designs and builds specialized computing infrastructure for data centers, AI clusters, and edge devices that power the world's biggest cloud providers. Formerly known as SMART Global Holdings, it quietly engineers the hardware behind the AI boom without ever making a chip itself.

In Bastion Portfolios?

52W Return+234%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-1%3

Revenue Forecast

Rev CAGR (1y)+72%10

Rev CAGR (3y)+25%9

Rev CAGR (5y)+21%9

Earnings Forecast

EPS Growth Y+1+1574%10

EPS Growth Y+2+19%8

EPS Growth Y+3+42%9

Quality

Margins

EBIT Margin10%4

Net Income Margin10%6

Free Cash Flow Margin-9%2

Debt

Net Debt/EBITDA0.47

Efficiency

ROE33%9

ROA8%8

Earnings Stability44

GEAR+AVERAGE66

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)146

P/E Ratio (Forward 3y)98

P/BV7.12

EV Multiples

EV/EBITDA Fwd87

EV/EBIT Fwd99

Yield

Free Cash Flow Yield-4.4%2

Dividend Yieldna–

Momentum

Short term

1 month return+42%10

3 month return-7%4

YTD return+271%10

Mid term

Price vs 52wHigh81%5

1 year return+220%10

Long term

3 year return+198%9

5 year return+230%9

Risk Shield

Price Risk

Beta2.51

Volatility84%1

Free Cash Flow

Free Cash Flow Margin-9%2

Free Cash Flow Yield-4.4%2

Quality

ROCE12%7

Earnings Stability44

Net Debt/EBITDA0.47

02Growth

Is it actually growing, and how fast?

PENGPenguin Solutions

Revenue FY25$1.4B

GROWTH RATING↗

VERY STRONG88 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%3

Revenue, next 1Y+72%10

Revenue, next 3Y, CAGR+25%9

Revenue, next 5Y, CAGR+21%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+1574%10

EPS growth, FY27E+19%8

EPS growth, FY28E+42%9

GROWTH ASSESSMENT

STRENGTHS

It out-grows 88% of companies worldwide.

Revenue is set to grow 25%/yr over the next 3 years, ahead of most of the market.9/10

After shrinking over the last 3 years, revenue is set to grow 25%/yr from here.

The runway holds up: revenue is set to grow 21%/yr over five years.9/10

Earnings are set to grow faster than sales (EPS about 42%/yr vs revenue 25%/yr), so margins should widen.

WATCH

None flagged.

WEAKNESSES

Revenue fell 0.7%/yr over the last 3 years, behind 70% of companies worldwide.3/10

BOTTOM LINE

Hyper Compounder

A top-tier grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG81 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+42%10

3-month return-7%4

YTD return+271%10

MID & LONG-TERM▾SCORE

% of 52-week high81%5

1-year return+220%10

3-year return+198%9

5-year return+230%9

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +198% over three years and +230% over five, ahead of 80% of the market.

It's up 220% over the past year, but 19% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+42%) and so far this year (+271%).

WATCH

Returns sit at the market level over three months (-7%).

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Penguin Solutions, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

PENGPenguin Solutions

Revenue FY25$1.4B

GROWTH RATING↗

VERY STRONG88 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-1%3

Revenue, next 1Y+72%10

Revenue, next 3Y, CAGR+25%9

Revenue, next 5Y, CAGR+21%9

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+1574%10

EPS growth, FY27E+19%8

EPS growth, FY28E+42%9

GROWTH ASSESSMENT

STRENGTHS

It out-grows 88% of companies worldwide.

Revenue is set to grow 25%/yr over the next 3 years, ahead of most of the market.9/10

After shrinking over the last 3 years, revenue is set to grow 25%/yr from here.

The runway holds up: revenue is set to grow 21%/yr over five years.9/10

Earnings are set to grow faster than sales (EPS about 42%/yr vs revenue 25%/yr), so margins should widen.

WATCH

None flagged.

WEAKNESSES

Revenue fell 0.7%/yr over the last 3 years, behind 70% of companies worldwide.3/10

BOTTOM LINE

Hyper Compounder

A top-tier grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

STRONG81 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+42%10

3-month return-7%4

YTD return+271%10

MID & LONG-TERM▾SCORE

% of 52-week high81%5

1-year return+220%10

3-year return+198%9

5-year return+230%9

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +198% over three years and +230% over five, ahead of 80% of the market.

It's up 220% over the past year, but 19% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+42%) and so far this year (+271%).

WATCH

Returns sit at the market level over three months (-7%).

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Penguin Solutions, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community