PENG
TechnologyPenguin Solutions, Inc. · Hardware, Equipment & Parts · $3B
What is Penguin Solutions, Inc.?
Penguin Solutions, Inc. is a small-cap technology company that designs and delivers enterprise computing, memory, and LED solutions to customers across government, healthcare, manufacturing, and hyperscale markets worldwide.
Penguin Solutions generates revenue through three segments: Advanced Computing, Integrated Memory, and Optimized LED. The Advanced Computing segment delivers high-performance computing and AI infrastructure through its Penguin Computing and Penguin Edge platforms, serving technical and edge environments. The Integrated Memory segment supplies DRAM modules, solid-state storage, and supply chain services for networking, telecom, and AI applications. The Optimized LED segment produces gallium nitride-based LED chips and surface mount devices sold under the Cree LED brand.
Incorporated in 2017 and headquartered in Fremont, California, Penguin Solutions operates across three distinct business segments.
- High-performance computing and AI solutions via Penguin Computing
- Edge computing products for government, healthcare, and telecom
- DRAM modules and solid-state storage for enterprise applications
- Fault-tolerant data center solutions through the Stratus platform
- Gallium nitride LED chips and surface mount devices under Cree LED
Is PENG a Good Stock to Buy?
UQS Score rates PENG as Below Average overall, reflecting meaningful challenges across several key quality dimensions.
The Risk pillar stands out as the relative bright spot in PENG's profile, suggesting the company carries a more manageable risk profile than its score might imply at first glance. The Valuation pillar is rated Attractive, meaning the stock does not appear expensive relative to its fundamentals — a potential consideration for value-oriented investors.
Both the Quality and Moat pillars are rated Weak, pointing to limited competitive durability and below-average business quality metrics. Growth is rated Neutral, offering little near-term upside catalyst.
Pro members can view the full pillar breakdown and underlying financial metrics to form a more complete picture of PENG's investment profile. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does PENG pay dividends?
No — Penguin Solutions, Inc. does not currently pay a dividend.
Penguin Solutions does not currently pay a dividend. For a company operating across capital-intensive segments like high-performance computing and memory solutions, retaining cash to fund product development, supply chain capabilities, and platform expansion is a common strategic priority. Income-focused investors should factor this into their assessment.
When does PENG report earnings?
Penguin Solutions reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
Across its three operating segments, results have reflected the uneven demand environment facing enterprise computing and memory markets. The Optimized LED segment adds a distinct revenue dynamic that sets PENG apart from pure-play computing peers.
For the most recent quarter's results and guidance, visit Penguin Solutions' investor relations page directly.
PENG Price History
+33.3% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Penguin Solutions, Inc.?
Based on Penguin Solutions, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
PENG Long-term Outlook
With Growth rated Neutral and Risk rated Good, PENG's fundamental trajectory appears stable but not particularly accelerating. The company's exposure to AI infrastructure and edge computing markets provides a long-term demand tailwind, though its Weak Quality and Moat ratings suggest execution and competitive positioning remain areas to watch. The Attractive Valuation rating indicates the market may already be pricing in some of these concerns.
Growth drivers
- Growing enterprise demand for AI and high-performance computing infrastructure
- Edge computing adoption across government, healthcare, and telecom verticals
- Supply chain services providing recurring revenue alongside hardware sales
Key risks
- Weak competitive moat leaves PENG vulnerable to better-resourced rivals in computing and memory
- Memory and LED markets are cyclical and subject to pricing pressure
- Multi-segment complexity can strain management focus and capital allocation
PENG vs Peers
Penguin Solutions competes in overlapping technology niches alongside several other small-cap players.
BlackSky focuses on geospatial intelligence and satellite-based data services, targeting government and defense customers rather than enterprise computing infrastructure.
Ouster specializes in lidar sensor technology for autonomous vehicles and industrial applications, occupying a narrower hardware niche than PENG's diversified platform.
Allient designs precision motion control and power electronics components, serving industrial and medical markets with a more focused product portfolio than Penguin Solutions.
Frequently Asked Questions
What does Penguin Solutions do?
Penguin Solutions designs and delivers enterprise technology across three segments: Advanced Computing, Integrated Memory, and Optimized LED. Its offerings span high-performance computing, AI infrastructure, edge computing, DRAM and solid-state storage, supply chain services, and gallium nitride LED chips sold under the Cree LED brand.
Does PENG pay dividends?
No, Penguin Solutions does not currently pay a dividend. The company operates across capital-intensive technology segments where retaining cash for reinvestment in computing platforms and supply chain capabilities is the prevailing approach.
When does PENG report earnings?
Penguin Solutions follows a standard quarterly earnings cadence for US-listed companies. For the most up-to-date schedule and recent results, check the company's official investor relations page.
Is PENG a good stock to buy?
UQS Score rates PENG as Below Average, driven by Weak Quality and Moat ratings. The Attractive Valuation and Good Risk ratings offer some counterbalance. Whether that profile fits your strategy depends on your risk tolerance and investment goals — the full pillar breakdown is available to Pro members.
Is PENG overvalued?
The UQS Valuation pillar rates PENG as Attractive, suggesting the stock does not appear expensive relative to its fundamentals. However, valuation alone does not determine quality — the Weak Quality and Moat ratings are important context for any valuation assessment.
How does PENG compare to its competitors?
Penguin Solutions operates across a broader set of technology niches than many small-cap peers, combining computing infrastructure, memory solutions, and LED products. Competitors like BlackSky, Ouster, and Allient each occupy narrower, more specialized market positions. The full UQS comparison is available on each ticker's page.
What is PENG's market cap bracket?
Penguin Solutions is classified as a small-cap company. This places it in a segment of the market that can offer growth potential but typically carries higher volatility and less analyst coverage than large- or mega-cap peers.
Who founded Penguin Solutions?
Penguin Solutions was incorporated in 2017. The company's founding and corporate history are publicly documented through SEC filings and the company's investor relations materials, which provide the most accurate account of its origins.
Is PENG a long-term quality stock?
As a long-term quality indicator, PENG's Below Average UQS Score — driven by Weak Quality and Moat ratings — suggests the business does not yet demonstrate the durable competitive advantages typically associated with high-quality long-term holdings. The Neutral Growth and Good Risk ratings provide some stability context.
What is the main competitive advantage of Penguin Solutions?
The UQS Moat pillar rates PENG as Weak, indicating limited durable competitive advantages at this time. The company's breadth across computing, memory, and LED segments provides diversification, but this has not yet translated into a clearly defensible market position relative to sector peers.
What sector does PENG belong to?
Penguin Solutions operates in the Technology sector. Its business spans enterprise computing infrastructure, memory and storage solutions, and LED chip manufacturing — giving it exposure to several distinct technology end markets simultaneously.
Is PENG a growth stock or value stock?
Based on UQS pillar ratings, PENG shows a Neutral Growth profile and an Attractive Valuation rating, placing it closer to the value end of the spectrum. It does not currently exhibit the strong growth characteristics typically associated with high-growth technology names.
Unlock the Full PENG Analysis
Sign in to unlock the detailed analysis behind the UQS Score.
- ✓View exact scores across all five UQS pillars
- ✓Access underlying financial metrics driving each rating
- ✓Compare PENG against sector peers side by side
- ✓See the complete Quality and Moat breakdown in detail
- ✓Track changes to PENG's UQS Score over time
- ✓Screen for stocks with stronger quality and moat profiles
Pro Analysis
PENG — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 7, 2026 | 47.5 | 33.8 | 21.0 | 58.0 | 66.0 | 82.1 | -1.1 |
| May 4, 2026 | 48.6 | 33.8 | 21.0 | 58.0 | 66.0 | 89.1 | +0.1 |
| May 3, 2026 | 48.5 | 33.8 | 21.0 | 57.9 | 66.0 | 88.7 | -0.1 |
| Apr 26, 2026 | 48.6 | 33.8 | 21.0 | 57.9 | 66.0 | 89.3 | -0.7 |
| Apr 19, 2026 | 49.3 | 33.8 | 21.0 | 57.9 | 66.0 | 94.2 | -0.3 |
| Apr 18, 2026 | 49.6 | 33.8 | 21.0 | 57.9 | 66.0 | 95.9 | -0.3 |
| Apr 14, 2026 | 49.9 | 33.8 | 21.0 | 57.9 | 66.0 | 98.2 | -0.1 |
| Apr 13, 2026 | 50.0 | 33.8 | 21.0 | 57.9 | 66.0 | 98.7 | 0.0 |
| Apr 12, 2026 | 50.0 | 33.8 | 21.0 | 58.1 | 66.0 | 98.7 | -0.2 |
| Apr 10, 2026 | 50.2 | 33.8 | 21.0 | 58.1 | 66.0 | 99.4 | +1.0 |
PENG — Pillar Breakdown
Quality
— 24.7/100 (25%)Penguin Solutions, Inc. currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 58.0/100 (20%)Penguin Solutions, Inc. demonstrates healthy growth trends across revenue and earnings.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 66.0/100 (15%)Penguin Solutions, Inc. maintains a reasonable risk profile with manageable debt levels.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 62.3/100 (15%)Penguin Solutions, Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 21/100 (25%)Penguin Solutions, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for PENG.
Score Composition
Financial Data
More Stock Analysis
How is the PENG UQS Score Calculated?
The UQS (Unified Quality Score) for Penguin Solutions, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Penguin Solutions, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Penguin Solutions, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.