PENGUIN SOLUTIONS INC (PENG) Stock Fundamental Analysis
NASDAQ:PENG - Nasdaq - KYG8232Y1017 - Common Stock - Currency: USD
Taking everything into account, PENG scores 5 out of 10 in our fundamental rating. 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on PENG.
1. Profitability
1.1 Basic Checks
In the past year PENG was profitable.
In the past year PENG had a positive cash flow from operations.
In multiple years PENG reported negative net income over the last 5 years.
In the past 5 years PENG always reported a positive cash flow from operatings.
1.2 Ratios
PENG has a Return On Assets of -0.48%. This is comparable to the rest of the industry: PENG outperforms 40.91% of 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.
The Return On Invested Capital of PENG (3.85%) is comparable to the rest of the industry.
PENG had an Average Return On Invested Capital over the past 3 years of 3.16%. This is significantly below the industry average of 11.26%.
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
PENG has a Operating Margin (4.95%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PENG has declined.
PENG has a worse Gross Margin (28.80%) than 70.91% 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
PENG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PENG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PENG has been increased compared to 5 years ago.
The debt/assets ratio for PENG has been reduced compared to a year ago.
2.2 Solvency
PENG has an Altman-Z score of 1.86. 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.
The Altman-Z score of PENG (1.86) is worse than 65.45% 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 fine compared to the rest of the industry. PENG outperforms 61.82% 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.
The Debt to Equity ratio of PENG (1.06) is worse than 85.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.69 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.41
WACC9.47%
2.3 Liquidity
PENG has a Current Ratio of 2.63. This indicates that PENG is financially healthy and has no problem in meeting its short term obligations.
PENG's Current ratio of 2.63 is in line compared to the rest of the industry. PENG outperforms 41.82% of its industry peers.
A Quick Ratio of 2.21 indicates that PENG has no problem at all paying its short term obligations.
With a Quick ratio value of 2.21, PENG perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.63 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
PENG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.13%, which is quite good.
The Earnings Per Share has been decreasing by -5.74% on average over the past years.
The Revenue has grown by 19.24% in the past year. This is quite good.
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
PENG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.72% yearly.
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 10.06 indicates a reasonable valuation of PENG.
Based on the Price/Earnings ratio, PENG is valued cheaply inside the industry as 94.55% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.21, PENG is valued rather cheaply.
PENG is valuated reasonably with a Price/Forward Earnings ratio of 9.14.
Based on the Price/Forward Earnings ratio, PENG is valued cheaply inside the industry as 91.82% of the companies are valued more expensively.
PENG is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PENG is valued cheaper than 87.27% of the companies in the same industry.
PENG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PENG is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.72 | ||
| EV/EBITDA | 7.55 |
4.3 Compensation for Growth
The 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
No dividends for PENG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.61
-0.24 (-1.34%)
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 Cap945.30M
Analysts81.43
Price Target26.59 (50.99%)
Short Float %13.13%
Short Ratio8.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
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)-1.88%
PT rev (3m)-1.88%
EPS NQ rev (1m)-10.21%
EPS NQ rev (3m)-10.21%
EPS NY rev (1m)2.14%
EPS NY rev (3m)2.14%
Revenue NQ rev (1m)-1.69%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.06 | ||
| Fwd PE | 9.14 | ||
| P/S | 0.72 | ||
| P/FCF | 6.72 | ||
| P/OCF | 6.13 | ||
| P/B | 1.57 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 7.55 |
EPS(TTM)1.75
EY9.94%
EPS(NY)1.93
Fwd EY10.94%
FCF(TTM)2.62
FCFY14.87%
OCF(TTM)2.87
OCFY16.32%
SpS24.56
BVpS11.22
TBVpS6.4
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 | 1.86 |
F-Score4
WACC9.47%
ROIC/WACC0.41
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 Year48.7%
EBIT Next 3Y30.49%
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%