Forensic Analysis · Semiconductors · as of Sep 25, 2026
Penguin Solutions, Inc. (PENG)
A forensic read on Penguin Solutions, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
5.6
Distress distance
Clean
Earnings quality
4
Forensic signals
28.2
P / E (ttm)
6.4%
ROE
$2.8B
Market cap
0.43%
Dividend yield
16.9%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Penguin Solutions, Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 5.6, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
5.3%
FY2025
Return on invested capital.Return on invested capital is 5.3% in the latest fiscal year and rising across FY2023–FY2025 from 0.9%. After-tax operating profit was $7M in FY2023 and $38M in FY2025, with operating income at 0.6% of revenue in FY2023, 1.6% in FY2024 and 4.2% in FY2025. The capital base behind it barely moved across FY2023–FY2025 ($750M to $709M, -5%), so there has been little new capital for that return to be earned on. FY2023's operating profit carried a $19M goodwill write-off and a $7M restructuring charge that took about 2.7 points off that year's return, and FY2025's carried a $16M goodwill write-off and a $2M restructuring charge that took about 1.7 points off the latest; so, net of each other, the two charges add about 1.0 points to the +4.4-point change across FY2023–FY2025. FY2024's operating profit carried a $7M restructuring charge that alone took about 0.7 points off that year's return; FY2024 sits between the two ends of FY2023–FY2025, so the charge shapes the path between them without moving the change across it.
+2.9%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +6% over the last 2 years to FY2025 (+2.9%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~2.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~6%.
3% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 3% of revenue and 41% of free cash flow in FY2025 — about $0.76 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 2.9% a year and that rate is not falling, so total profit has to grow by that much annually before any of it reaches a share. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$1.37B
Revenue Growth YoY+16.9%
Revenue CAGR (2yr)-2.5%
Net Margin1.9%
Free Cash Flow$100.1M
Return on Equity6.4%
Debt / Equity1.17x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Penguin Solutions, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Sep 25, 2026. Forensic signals flag probability, not certainty.
Penguin Solutions, Inc. (PENG) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
$35M
FY2023–FY2025
Goodwill impairments.Took $35M of goodwill writedowns across 2 years (FY2023 ($19M), FY2025 ($16M)). Writedowns mean past acquisitions underperformed what was paid for them.