PENGPenguin Solutions, Inc.
Is the business good?
The checks split: margins widening, but 3 of 9 health tests passed and profits without cash flow.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Reports an operating profit but operating cash flow is negative, a red flag. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 19% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PENG?
Penguin Solutions, Inc. earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 9.6%
Operating margin · Information Technology Services median 9.5% · 12 months to Q4 2026
- Cash conversion
- −1.16×
Cash conversion · 3.18× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- +18%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | −1.5% |
| FY2022 | 4.8% |
| FY2023 | 0.61% |
| FY2024 | 1.6% |
| FY2025 | 4.3% |
| FY2026 | 9.6% |
Details›
- Gross margin12 months to Q4 2026
- 28%
- Operating margin12 months to Q4 2026
- 9.6%
- Net margin12 months to Q4 2026
- 10%
- Free cash flow margin
- −9.4%
- R&D as % of revenue
- 4.7%
- Revenue, trailing twelve months
- $1.73B
- Free cash flow, trailing twelve months
- −$163M
- Net income, trailing twelve months
- $181M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from PENG and who it buys from, as the companies report it.
- Ten largest customers56%
Combined share of revenue · FY2026 10-K
None disclosed.
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; PENG’s own figures are from its FY2026 10-K. Smaller customers and suppliers go unreported.
Information Technology Services
Ranks #18 of 30 by RyuScore