Latest Ratios: P/E Ratio 242.6x · EV/EBITDA 29.5x · ROE 4.3%. (2015–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.6B | $1.3B | — | — | — | — | — | — | — | — | — |
| Enterprise Value | $3.9B | $1.6B | — | — | — | — | — | — | — | — | — |
| P/E Ratio → | 242.64 | 86.18 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 2.61 | 0.96 | — | — | — | — | — | — | — | — | — |
| P/B Ratio | 6.07 | 2.16 | — | — | — | — | — | — | — | — | — |
| P/FCF | 35.68 | 13.11 | — | — | — | — | — | — | — | — | — |
| P/OCF | 32.74 | 12.03 | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.16 | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | 29.52 | 12.20 | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 51.89 | 28.31 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 15.90 | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.8% | 28.8% | 29.3% | 28.8% | 28.0% | 22.5% | 19.3% | 19.6% | 22.6% | 21.3% | 20.0% |
| Operating Margin | 5.4% | 5.4% | 1.6% | 0.6% | 4.8% | -1.5% | 3.7% | 7.3% | 13.2% | 7.1% | 1.2% |
| Net Profit Margin | 1.6% | 1.6% | -4.5% | -13.0% | 4.8% | 2.0% | -0.1% | 4.2% | 9.3% | -1.0% | -3.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.3% | 4.3% | -16.7% | -61.7% | 19.1% | 7.1% | -0.4% | 22.3% | 88.6% | -19.2% | -539.3% |
| ROA | 1.4% | 1.4% | -3.5% | -12.2% | 4.6% | 2.0% | -0.2% | 7.5% | 20.7% | -1.7% | -3.9% |
| ROIC | 6.8% | 6.8% | 1.9% | 0.9% | 8.3% | -2.8% | 8.4% | 17.8% | 42.2% | 19.2% | 2.5% |
| ROCE | 6.5% | 6.5% | 1.6% | 0.8% | 7.4% | -2.5% | 8.5% | 21.1% | 55.2% | 22.9% | 2.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.21 | 1.21 | 1.82 | 3.74 | 1.72 | 1.25 | 0.79 | 0.76 | 1.13 | 2.15 | — |
| Debt / EBITDA | 5.62 | 5.62 | 8.64 | 10.66 | 5.72 | 20.71 | 2.85 | 1.75 | 1.08 | 2.04 | 6.44 |
| Net Debt / Equity | — | 0.46 | 0.86 | 2.14 | 0.89 | 0.55 | 0.25 | 0.40 | 0.96 | 1.88 | — |
| Net Debt / EBITDA | 2.14 | 2.14 | 4.08 | 6.11 | 2.97 | 9.11 | 0.91 | 0.92 | 0.92 | 1.78 | 4.89 |
| Debt / FCF | — | 2.79 | 5.93 | 7.56 | 3.99 | 1.28 | 1.29 | 0.80 | 4.27 | — | 152.63 |
| Interest Coverage | 7.69 | 7.69 | -0.10 | -0.08 | 2.74 | -0.88 | 1.62 | 4.20 | 8.20 | 1.07 | 0.32 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.25 | 2.25 | 2.65 | 2.13 | 2.23 | 1.63 | 1.97 | 1.99 | 1.76 | 1.45 | 1.39 |
| Quick Ratio | 1.71 | 1.71 | 2.19 | 1.72 | 1.72 | 1.01 | 1.39 | 1.49 | 1.02 | 0.92 | 0.94 |
| Cash Ratio | 0.96 | 0.96 | 1.19 | 0.92 | 0.61 | 0.38 | 0.53 | 0.41 | 0.11 | 0.09 | 0.26 |
| Asset Turnover | — | 0.85 | 0.79 | 0.96 | 0.89 | 0.78 | 1.43 | 1.72 | 1.92 | 1.59 | 1.17 |
| Inventory Turnover | 3.82 | 3.82 | 5.47 | 5.86 | 3.81 | 2.25 | 5.56 | 8.21 | 4.50 | 4.71 | 4.15 |
| Days Sales Outstanding | — | 82.11 | 78.48 | 55.52 | 93.17 | 109.84 | 71.87 | 69.78 | 68.70 | 89.94 | 98.76 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.2% | 0.6% | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 36.4% | 36.4% | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.4% | 1.2% | — | — | — | — | — | — | — | — | — |
| FCF Yield | 2.8% | 7.6% | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 1.7% | 4.6% | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 1.9% | 5.2% | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $54M | $52M | $51M | $54M | $52M | $48M | $47M | $46M | $32M | $41M |
Project-based revenue volatility
Based on current market data, PENG trades at a forward P/E of 27.88, which appears to reflect a conglomerate discount compared to pure-play AI infrastructure peers, as investors struggle to reconcile the company's legacy hardware manufacturing footprint with its emerging high-performance computing and edge AI capabilities.
The valuation gap between PENG and specialized AI infrastructure providers suggests that the market remains skeptical of the company's ability to pivot away from lower-margin commodity segments. Investors should monitor whether the rebranding to Penguin Solutions successfully shifts the narrative, as the current multiple implies a cautious outlook on long-term margin expansion.
As reported in financial statements, PENG's ROIC has struggled to exceed 2.8% in recent quarters, a figure that remains significantly below the cost of capital and highlights the difficulty in generating meaningful returns from the capital-intensive acquisitions of Cree LED and Stratus Technologies.
The persistent low ROIC indicates that the company has yet to achieve the operational synergies required to justify its historical M&A activity. This trend warrants further investigation into whether the current asset base can support higher returns as the revenue mix shifts toward more specialized, software-defined infrastructure.
According to recent quarterly filings, PENG's cash conversion cycle remains elevated at 63 days as of 2026Q2, driven by significant inventory and receivables management challenges that continue to constrain the company's ability to convert operational growth into consistent, free cash flow generation.
The high days sales outstanding and inventory levels suggest that PENG faces structural friction in its supply chain, likely exacerbated by the lumpy nature of its project-based Advanced Computing deployments. This inefficiency forces the company to maintain higher liquidity buffers than would be required in a more streamlined, high-velocity hardware model.
Analysts frequently misapply net margin as the primary indicator of PENG's health, failing to account for the significant non-cash amortization and integration costs associated with its recent acquisitions, which obscure the underlying cash-generating potential of the core Advanced Computing and fault-tolerant software business segments.
Focusing on GAAP net margins of 1.58% ignores the potential for recurring service revenue within the Stratus business, which is inherently more profitable than the legacy hardware segments. Investors should instead prioritize adjusted EBITDA and free cash flow metrics to better evaluate the company's true earning power during this strategic transition.
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying PENG stock.
Penguin Solutions, Inc.'s current P/E ratio is 242.6x. The historical average is 86.2x. This places it at the 100th percentile of its historical range.
Penguin Solutions, Inc.'s current EV/EBITDA is 29.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.2x.
Penguin Solutions, Inc.'s return on equity (ROE) is 4.3%. The historical average is 4.8%.
Based on historical data, Penguin Solutions, Inc. is trading at a P/E of 242.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Penguin Solutions, Inc.'s current dividend yield is 0.21% with a payout ratio of 36.4%.
Penguin Solutions, Inc. has 28.8% gross margin and 5.4% operating margin.
Penguin Solutions, Inc.'s Debt/EBITDA ratio is 5.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.