Stock fact sheet · data as of
Penguin Solutions, Inc. (PENG): fair value, margin of safety and Wheel Score
Ticker symbol PENG · Technology · Semiconductors · United States · Speculative
Is PENG undervalued?
At 48.35 (close of 5 Nov 2026), PENG trades 41% below the GLS average fair value of 81.39. That average comes from 6 models run on the latest filings, and 3 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Penguin Solutions, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 6 models disagree widely: DCF gives 10.43 while GLS Growth gives 198.46. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files PENG under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for PENG
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 10.43 | -78% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 30.79 | -36% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 149.83 | +210% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 62.84 | +30% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 198.46 | +310% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 36.02 | -26% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 4.10 | -92% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 85.83 | +78% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: PENG passes 3 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 3.9 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are moderate - ROIC 11.5%, ROE 25.0%, ROA 6.5% - with debt at 1.17 times equity and negative free cash flow.
Penguin Solutions, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Product 86%, Service 15% (fiscal year FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 3 / 9 | ROIC | 11.5% |
|---|---|---|---|
| GLS Moat | 3.9 / 10 | ROE | 25.0% |
| Debt / equity | 1.17 | ROA | 6.5% |
| Free-cash-flow yield | -6.7% | Payout ratio | 5% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 37: Weak
PENG scores 37 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 4, financially healthy - Piotroski 3/9 (under 6); and filter 5, can repay its debt - debt with no positive cash flow to repay it; and filter 7, a premium worth selling - implied volatility 92% (over 80%), and the parts are thin too - value strong, premium fair, moat fair, health weak, red flags strong, option trading good, stability weak. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 92%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is 37,532 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 3.4M shares a day on a market cap of $2.5B, with a beta of 2.87 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Fails | debt with no positive cash flow to repay it |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 92% (over 80%) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 41% below fair value | |
| Premium | Fair | implied volatility 92% | |
| Moat | Fair | moat 3.9/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Good | 2,353 contracts a day, 37,532 open interest | |
| Stability | Weak | beta 2.87, $2.5B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Jan 2027, 61 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Semiconductors
The 12 companies below are the closest to Penguin Solutions, Inc. by market cap within the Semiconductors industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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|---|---|---|---|---|---|
| NVTS Navitas Semiconductor Corp | 9.33 | - | - | 20Weak | $2.4B |
| OUST Ouster, Inc. | 33.54 | - | - | 20Weak | $2.4B |
| POWI Power Integrations, Inc. | 46.80 | 20.64 | -127% | 35Weak | $2.6B |
| AMBA Ambarella, Inc. | 60.92 | 7.60 | -702% | 24Weak | $2.7B |
| VECO Veeco Instruments Inc. | 36.00 | 17.03 | -111% | 25Weak | $2.2B |
| ACLS Axcelis Technologies, Inc. | 92.14 | 62.62 | -47% | 28Weak | $2.8B |
| NLST Netlist, Inc. | 5.99 | 0.0304 | -19591% | 14No options | $2.2B |
| ACMR ACM Research, Inc. | 44.43 | 54.41 | +18% | 31Weak | $2.9B |
| UCTT Ultra Clean Holdings, Inc. | 44.04 | 10.80 | -308% | 25Weak | $2.1B |
| COHU Cohu, Inc. | 43.98 | 18.17 | -142% | 22Weak | $2.1B |
| IPGP IPG Photonics Corporation | 70.11 | 26.55 | -164% | 34Weak | $3.0B |
| AEHR Aehr Test Systems | 60.84 | 2.30 | -2541% | 21Weak | $2.0B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about PENG
Is PENG undervalued right now?
By the GLS models, yes: at 48.35 the stock is 41% below the average fair value of 81.39 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of PENG and what does it mean?
PENG scores 37 out of 100 (Weak) - it fails Wheel Trade Filters 2, 4, 5, 7. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for PENG?
81.39 per share as of 5 Nov 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Penguin Solutions, Inc. report earnings next?
The next earnings report is due on 5 Jan 2027, 61 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does PENG have listed options, and how liquid are they?
Yes. The nightly snapshot found 48 listed contracts with 37,532 open interest across all expiries and implied volatility of 92% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.