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

No fundamental blowup here — this is a giveback of a huge AI-hype rally plus dilution jitters from a big debt raise, not a broken business.

👀 WATCH Fundamentals55/100

Fell 33% in 10 trading day(s) — now $52.49

Why PENG dropped

The stock had tripled in 90 days on AI infrastructure hype, then gave back a chunk of those gains after the company raised $650-750M in convertible notes (dilution fear) and its CFO announced departure, even though the company actually beat Q3 earnings and raised full-year guidance twice.

Fwd P/E 15.7Op margin 10.8%Rev growth 47.6%Debt/equity 77.5%Analyst upside 41.5%

How this scored 55/100

✅ 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? 15/25

Forward P/E 15.7 8/10

PEG ratio unknown 2/8

Analyst target upside 41.5% 5/7

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 2026-07-28. Research only — not financial advice.