Penguin Solutions, Inc. logo PENG - Penguin Solutions, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 7
HOLD 1
SELL 1
STRONG
SELL
0
| PRICE TARGET: $83.00 DETAILS
HIGH: $100.00
LOW: $60.00
MEDIAN: $85.00
CONSENSUS: $83.00
UPSIDE: 14.31%
AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C- 50.8 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 15%
D+ 41.6
  • 5yr Avg ROIC 2.0% 20/100
  • Operating Margin Trend +1.43 pp/yr 91/100
Contributes 6.2 pts toward composite.

Capital Efficiency

Weight: 15%
F 0.0
  • 5yr Avg ROE -8.3% 0/100
Contributes 0.0 pts toward composite.

Growth Quality

Weight: 10%
A- 80.7
  • 5yr Revenue CAGR 10.4% 81/100
  • Revenue-Growth Years (5) 4/5 80/100
Contributes 8.1 pts toward composite.

Cash Generation

Weight: 15%
C+ 60.5
  • 5yr FCF Margin 2.8% 39/100
  • 5yr FCF/NI Conversion 1.69x 87/100
Contributes 9.1 pts toward composite.

Balance Sheet

Weight: 25%
A- 82.8
  • Net Debt / EBITDA 0.88x 86/100
  • Interest Coverage (EBIT/Int) 378.07x 100/100
  • Altman Z-Score 2.48 56/100
Contributes 20.7 pts toward composite.

Stability

Weight: 20%
D 33.3
  • EPS Volatility (σ/μ) 0.82 7/100
  • Negative-Revenue Years (5) 1/5 80/100
  • Piotroski F-Score 3 33/100
Contributes 6.7 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Accumulating

4 of 4 gurus held; 2 new buys; 2 added.

Holders
4 +3
Avg Δ position
+10.1%
New buys
2
Full exits
0
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE
  • Growth Quality (10%) — 5yr Revenue CAGR, Revenue-Growth Years (5)
  • Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (20%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.