Penguin Solutions
PENG on Nasdaq. Penguin Solutions sells computing, memory and LED products and services to businesses. Market value $3.1bn.
Price checks use the past 12 months to May 2026. Quality checks use five annual reports, the latest for the year to August 2025.
Should I look at this?
Not a fit for our list right now
Why it could be worth it
See Technology stocks that passed both tests
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $-2.11 of spare cash in the past 12 months. A savings account pays about $4.
You pay 30.3 years of operating profit for the business. The average large US company costs around 18.
Each dollar kept in the business earns 2 cents a year. Above 10 is good.
Quality score: 59 of 100. Price score: 16 of 100. Our list needs 70 on quality and 60 on price.
$64.21 a share, 300% above its 1-year low
Over the past year the price has ranged from $16.04 to $89.86.
Pays no dividend
Prices from Tuesday’s close (6 October).
Five years of cash, in billions
Spare cash swings from quarter to quarter here: a shortfall of $69 million in the past 12 months, $100 million in the year to August 2025.
| Revenue | |||||
| Revenue | $1.1bn | $1.4bn | $1.4bn | $1.2bn | $1.4bn |
| Operating margin | |||||
| Operating margin | -1.5% | 4.8% | 0.6% | 1.6% | 4.2% |
| Debt to equity | |||||
| Debt to equity | 1.18 | 1.57 | 3.55 | 1.68 | 1.17 |
| Shares outstanding | |||||
| Shares outstanding | 0.05bn | 0.05bn | 0.05bn | 0.05bn | 0.05bn |
Health checks
- Free cash flow positive5 of 5 years
- Accounting looks honest (Beneish)Nothing unusual
- Financial strength (Piotroski)7 of 9
- Profit backed by cash (accruals)Yes
- Debt1.17× equity
- Revenue growth, five yearsSlow, 4.0% a year
- Buying back its own sharesRoughly flat
The quarter to May 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $479 million last quarter, up 48% on a year ago.
- Profit: $45 million, up 1579% on a year ago.
- It keeps 7 cents of each $1 of sales as operating profit, up from 4 cents a year earlier.
- Over the past 12 months it spent $69 million more cash than it brought in. A year earlier it had $155 million spare.
- 2% more shares than a year ago. Each share owns a bit less of the company.
- Debt is $3 million more than cash. A year ago it had $50 million more cash than debt.
- Sales grew on a year ago in 3 of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| August 2024 | $311m |
| November 2024 | $341m |
| February 2025 | $366m |
| May 2025 | $324m |
| August 2025 | $338m |
| November 2025 | $343m |
| February 2026 | $343m |
| May 2026 | $479m |
| Quarter to | Amount |
|---|---|
| August 2024 | -$25m |
| November 2024 | $5m |
| February 2025 | $8m |
| May 2025 | $3m |
| August 2025 | $9m |
| November 2025 | $5m |
| February 2026 | $37m |
| May 2026 | $45m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 21 October 2025
- Next quarterly (estimated, 10-Q)
- 6 October 2026
Who owns it
6 long-term investors we follow own it, up from 4 last quarter. 352 funds in all.
| Fund | Value | Share of that fund | Change |
|---|---|---|---|
| Barrow HanleyBarrow Hanley team | $150m | 0.5% | Added |
| Boston PartnersBoston Partners team | $128m | 0.1% | Added |
| LSV Asset ManagementJosef Lakonishok | $63m | 0.1% | Cut |
| Royce & AssociatesChuck Royce | $23m | 0.2% | Cut |
| Polen CapitalDan Davidowitz | $2m | <0.1% | New |
| Gotham Asset ManagementJoel Greenblatt | $666,380 | <0.1% | New |
Largest holders overall
- BlackRock$582m
- FMR$469mAdded
- Invesco$346mAdded
- State Street$238mCut
- Vanguard Portfolio Management$227mCut
- Dimensional Fund Advisors LP$182m
- Vanguard Capital Management$160mCut
- Barrow Hanley$150mAdded
- American Century Companies$149mAdded
- Boston Partners$128mAdded
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
8 investors own more than 5%.
- BlackRock, Inc.Passive investor14.4%Since 30 September 2025
- FMR LLCPassive investorat least 12.4%+1.8 pts(filed with 1 related holder)Since 30 June 2026
- SK Telecom Co., Ltd.Passive investorat least 10.3%0.0 pts(filed with 1 related holder)Since 27 July 2026
What they said
Item 4 of the Original Schedule 13D is hereby amended and supplemented by the information contained in Item 6 of this Amendment No. 1, which is incorporated herein by reference.
Read the filing - Invesco Ltd.Passive investor9.0%+1.4 ptsSince 30 June 2026
- BANK OF NOVA SCOTIAPassive investor8.5%Since 30 June 2026
- Vanguard Portfolio ManagementPassive investor6.9%Since 31 March 2026
- STATE STREET CORPORATIONPassive investor5.5%0.0 ptsSince 30 September 2025
- Crosslink Capital, Inc.Passive investorat least 3.5%−2.4 pts(filed with 1 related holder)Since 30 September 2025
- The Vanguard GroupPassive investorSold down below 5%Since 13 March 2026
| Holder | Stake | Since | |
|---|---|---|---|
BlackRock, Inc. Passive investor | 14.4% | 30 September 2025 | |
FMR LLC Passive investor | at least 12.4%+1.8 pts (filed with 1 related holder) | 30 June 2026 | |
SK Telecom Co., Ltd. Passive investor | at least 10.3%0.0 pts (filed with 1 related holder) | 27 July 2026 | What they saidItem 4 of the Original Schedule 13D is hereby amended and supplemented by the information contained in Item 6 of this Amendment No. 1, which is incorporated herein by reference. Read the filing |
Invesco Ltd. Passive investor | 9.0%+1.4 pts | 30 June 2026 | |
BANK OF NOVA SCOTIA Passive investor | 8.5% | 30 June 2026 | |
Vanguard Portfolio Management Passive investor | 6.9% | 31 March 2026 | |
STATE STREET CORPORATION Passive investor | 5.5%0.0 pts | 30 September 2025 | |
Crosslink Capital, Inc. Passive investor | at least 3.5%−2.4 pts (filed with 1 related holder) | 30 September 2025 | |
The Vanguard Group Passive investor | Sold down below 5% | 13 March 2026 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
No insider bought shares on the open market in the last 12 months. 4 sold $4m, $3m of it under preset trading plans.
- Kuykendall AnneSVP and Chief Legal OfficerSoldunder a preset trading plan
- Date
- 24 August 2026
- Shares
- 4,000
- Price
- $50.58
- Value
- $202,301
- Clark Joseph GatesSVP and Pres, Optimized LEDSoldunder a preset trading plan
- Date
- 23 July 2026
- Shares
- 1,327
- Price
- $57.47
- Value
- $76,263
- Kuykendall AnneSVP and Chief Legal OfficerSoldunder a preset trading plan
- Date
- 22 July 2026
- Shares
- 739
- Price
- $56.12
- Value
- $41,473
- Kuykendall AnneSVP and Chief Legal OfficerSoldunder a preset trading plan
- Date
- 15 June 2026
- Shares
- 4,000
- Price
- $64.38
- Value
- $257,510
- Clark Joseph GatesSVP and Pres, Optimized LEDSoldunder a preset trading plan
- Date
- 1 June 2026
- Shares
- 10,351
- Price
- $58.88
- Value
- $609,432
- Kuykendall AnneSVP and Chief Legal OfficerSoldunder a preset trading plan
- Date
- 26 May 2026
- Shares
- 4,000
- Price
- $54.45
- Value
- $217,808
- Straub Maximiliane CDirectorSold
- Date
- 14 May 2026
- Shares
- 3,000
- Price
- $49.00
- Value
- $147,000
- Straub Maximiliane CDirectorSold
- Date
- 12 May 2026
- Shares
- 4,000
- Price
- $44.34
- Value
- $177,360
- NAYYAR SANDEEPDirectorSold
- Date
- 12 May 2026
- Shares
- 7,107
- Price
- $43.48
- Value
- $309,012
- Straub Maximiliane CDirectorSold
- Date
- 11 May 2026
- Shares
- 8,000
- Price
- $45.00
- Value
- $360,000
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 24 August 2026 | Kuykendall Anne SVP and Chief Legal Officer | Sold under a preset trading plan | 4,000 | $50.58 | $202,301 |
| 23 July 2026 | Clark Joseph Gates SVP and Pres, Optimized LED | Sold under a preset trading plan | 1,327 | $57.47 | $76,263 |
| 22 July 2026 | Kuykendall Anne SVP and Chief Legal Officer | Sold under a preset trading plan | 739 | $56.12 | $41,473 |
| 15 June 2026 | Kuykendall Anne SVP and Chief Legal Officer | Sold under a preset trading plan | 4,000 | $64.38 | $257,510 |
| 1 June 2026 | Clark Joseph Gates SVP and Pres, Optimized LED | Sold under a preset trading plan | 10,351 | $58.88 | $609,432 |
| 26 May 2026 | Kuykendall Anne SVP and Chief Legal Officer | Sold under a preset trading plan | 4,000 | $54.45 | $217,808 |
| 14 May 2026 | Straub Maximiliane C Director | Sold | 3,000 | $49.00 | $147,000 |
| 12 May 2026 | Straub Maximiliane C Director | Sold | 4,000 | $44.34 | $177,360 |
| 12 May 2026 | NAYYAR SANDEEP Director | Sold | 7,107 | $43.48 | $309,012 |
| 11 May 2026 | Straub Maximiliane C Director | Sold | 8,000 | $45.00 | $360,000 |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
None of the warning signs we check for were found.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 21 Oct 2025, plus the 10-Q filed 7 Jul 2026 and 10 later 8-Ks.
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
- It isn't cheap on profits: 30.3× operating profit.
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.