PENGUIN SOLUTIONS INC (PENG) Stock Fundamental Analysis
NASDAQ:PENG - Nasdaq - KYG8232Y1017 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PENG. PENG was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. PENG has only an average score on both its financial health and profitability. PENG scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year PENG was profitable.
PENG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PENG reported negative net income in multiple years.
Each year in the past 5 years PENG had a positive operating cash flow.
1.2 Ratios
PENG has a Return On Assets (-0.48%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of -1.45%, PENG is in line with its industry, outperforming 40.91% of the companies in the same industry.
PENG has a Return On Invested Capital of 3.85%. This is comparable to the rest of the industry: PENG outperforms 58.18% of its industry peers.
PENG had an Average Return On Invested Capital over the past 3 years of 3.16%. This is significantly below the industry average of 11.29%.
The 3 year average ROIC (3.16%) for PENG is below the current ROIC(3.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -1.45% | ||
| ROIC | 3.85% |
ROA(3y)-3.92%
ROA(5y)-2.07%
ROE(3y)-26.58%
ROE(5y)-14.66%
ROIC(3y)3.16%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 4.95%, PENG is in line with its industry, outperforming 53.64% of the companies in the same industry.
In the last couple of years the Operating Margin of PENG has declined.
PENG's Gross Margin of 28.80% is on the low side compared to the rest of the industry. PENG is outperformed by 73.64% of its industry peers.
In the last couple of years the Gross Margin of PENG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.95% | ||
| PM (TTM) | N/A | ||
| GM | 28.8% |
OM growth 3YN/A
OM growth 5Y-19.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.11%
GM growth 5Y8.37%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PENG is destroying value.
The number of shares outstanding for PENG has been increased compared to 1 year ago.
The number of shares outstanding for PENG has been increased compared to 5 years ago.
PENG has a better debt/assets ratio than last year.
2.2 Solvency
PENG has an Altman-Z score of 1.85. This is not the best score and indicates that PENG is in the grey zone with still only limited risk for bankruptcy at the moment.
PENG's Altman-Z score of 1.85 is on the low side compared to the rest of the industry. PENG is outperformed by 64.55% of its industry peers.
PENG has a debt to FCF ratio of 4.69. This is a neutral value as PENG would need 4.69 years to pay back of all of its debts.
PENG's Debt to FCF ratio of 4.69 is in line compared to the rest of the industry. PENG outperforms 56.36% of its industry peers.
PENG has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
PENG has a worse Debt to Equity ratio (1.06) than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 1.85 |
ROIC/WACC0.35
WACC10.93%
2.3 Liquidity
A Current Ratio of 2.63 indicates that PENG has no problem at all paying its short term obligations.
With a Current ratio value of 2.63, PENG perfoms like the industry average, outperforming 42.73% of the companies in the same industry.
PENG has a Quick Ratio of 2.21. This indicates that PENG is financially healthy and has no problem in meeting its short term obligations.
PENG has a Quick ratio (2.21) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.13% over the past year.
PENG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.74% yearly.
PENG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.24%.
PENG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.69% yearly.
EPS 1Y (TTM)15.13%
EPS 3Y-21.66%
EPS 5Y-5.74%
EPS Q2Q%92.59%
Revenue 1Y (TTM)19.24%
Revenue growth 3Y3.52%
Revenue growth 5Y-0.69%
Sales Q2Q%28.33%
3.2 Future
The Earnings Per Share is expected to grow by 25.10% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.72% on average over the next years. This is quite good.
EPS Next Y32.39%
EPS Next 2Y24.16%
EPS Next 3Y25.1%
EPS Next 5YN/A
Revenue Next Year15.98%
Revenue Next 2Y12.25%
Revenue Next 3Y12.72%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.15 indicates a reasonable valuation of PENG.
Based on the Price/Earnings ratio, PENG is valued cheaper than 94.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. PENG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.22, the valuation of PENG can be described as reasonable.
Based on the Price/Forward Earnings ratio, PENG is valued cheaply inside the industry as 93.64% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.15. PENG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
91.82% of the companies in the same industry are more expensive than PENG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PENG is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.67 | ||
| EV/EBITDA | 7.38 |
4.3 Compensation for Growth
PENG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PENG's earnings are expected to grow with 25.10% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y24.16%
EPS Next 3Y25.1%
5. Dividend
5.1 Amount
PENG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.76
-0.17 (-0.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners111.6%
Inst Owner ChangeN/A
Ins Owners2.34%
Ins Owner Change-0.48%
Market Cap937.02M
Analysts81.43
Price Target26.59 (49.72%)
Short Float %13.14%
Short Ratio8.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.07%
Min EPS beat(2)22.59%
Max EPS beat(2)33.54%
EPS beat(4)3
Avg EPS beat(4)16.58%
Min EPS beat(4)-9.43%
Max EPS beat(4)33.54%
EPS beat(8)6
Avg EPS beat(8)19.49%
EPS beat(12)10
Avg EPS beat(12)20.83%
EPS beat(16)14
Avg EPS beat(16)20.7%
Revenue beat(2)2
Avg Revenue beat(2)4.06%
Min Revenue beat(2)3.84%
Max Revenue beat(2)4.29%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-6.14%
Max Revenue beat(4)4.29%
Revenue beat(8)3
Avg Revenue beat(8)-7.61%
Revenue beat(12)4
Avg Revenue beat(12)-13.28%
Revenue beat(16)7
Avg Revenue beat(16)-15.64%
PT rev (1m)0%
PT rev (3m)-1.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.21%
EPS NY rev (1m)0%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 9.22 | ||
| P/S | 0.71 | ||
| P/FCF | 6.67 | ||
| P/OCF | 6.07 | ||
| P/B | 1.56 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 7.38 |
EPS(TTM)1.75
EY9.85%
EPS(NY)1.93
Fwd EY10.85%
FCF(TTM)2.66
FCFY15%
OCF(TTM)2.92
OCFY16.47%
SpS24.99
BVpS11.42
TBVpS6.51
PEG (NY)0.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.48% | ||
| ROE | -1.45% | ||
| ROCE | 4.88% | ||
| ROIC | 3.85% | ||
| ROICexc | 7.47% | ||
| ROICexgc | 11.95% | ||
| OM | 4.95% | ||
| PM (TTM) | N/A | ||
| GM | 28.8% | ||
| FCFM | 10.66% |
ROA(3y)-3.92%
ROA(5y)-2.07%
ROE(3y)-26.58%
ROE(5y)-14.66%
ROIC(3y)3.16%
ROIC(5y)N/A
ROICexc(3y)4.85%
ROICexc(5y)N/A
ROICexgc(3y)7.31%
ROICexgc(5y)N/A
ROCE(3y)4%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-31.95%
ROICexc growth 3YN/A
ROICexc growth 5Y-31.15%
OM growth 3YN/A
OM growth 5Y-19.91%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.11%
GM growth 5Y8.37%
F-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.69 | ||
| Debt/EBITDA | 5.1 | ||
| Cap/Depr | 22.94% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 123.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 1.85 |
F-Score4
WACC10.93%
ROIC/WACC0.35
Cap/Depr(3y)47.82%
Cap/Depr(5y)65.88%
Cap/Sales(3y)2.38%
Cap/Sales(5y)2.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.13%
EPS 3Y-21.66%
EPS 5Y-5.74%
EPS Q2Q%92.59%
EPS Next Y32.39%
EPS Next 2Y24.16%
EPS Next 3Y25.1%
EPS Next 5YN/A
Revenue 1Y (TTM)19.24%
Revenue growth 3Y3.52%
Revenue growth 5Y-0.69%
Sales Q2Q%28.33%
Revenue Next Year15.98%
Revenue Next 2Y12.25%
Revenue Next 3Y12.72%
Revenue Next 5YN/A
EBIT growth 1Y6110.28%
EBIT growth 3YN/A
EBIT growth 5Y-20.47%
EBIT Next Year50.41%
EBIT Next 3Y29.75%
EBIT Next 5YN/A
FCF growth 1Y236.31%
FCF growth 3Y-18.27%
FCF growth 5Y-15.78%
OCF growth 1Y83.28%
OCF growth 3Y-20.46%
OCF growth 5Y-14.58%