Penguin Solutions, Inc. (PENG): one to watch?

Interesting AI-growth story hit by a sector-wide selloff and margin worries, not a company blowup — but negative cash flow and insider selling argue for waiting.

👀 WATCH Fundamentals56/100

Fell 21% in 8 trading day(s) — now $50.38

Why PENG dropped

The stock is falling mainly because of a broad tech/AI selloff (rising bond yields hitting richly valued AI names) combined with profit-taking after a huge run-up, plus growing investor worry about shrinking gross margins as the company shifts away from its high-margin legacy business — not because of fraud, an accounting problem, or a lost customer.

Fwd P/E 15.1Op margin 10.8%Rev growth 47.6%Debt/equity 77.5%Analyst upside 47.5%

How this scored 56/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 6.4%

✅ Generates cash Free cash flow $-108M

✅ Not drowning in debt Debt/equity 77.5% (limit 200%)

✅ Can pay its bills Current ratio 1.5 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 11/25

Operating margin 10.8% 4/9

Net profit margin 6.4% 3/8

Return on equity 16.2% 4/8

Growth Is it getting bigger, or dying? 19/25

Revenue growth 47.6% 9/9

Earnings growth unknown 2/8

Expected profit change 140.6% 8/8

Value Is it cheap right now? 16/25

Forward P/E 15.1 8/10

PEG ratio unknown 2/8

Analyst target upside 47.5% 6/7

Balance sheet Will it survive? 10/25

Debt / equity 77.5% 7/10

Current ratio 1.5 3/8

Free cash flow $-108M 0/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-26. Research only — not financial advice.