Penguin Solutions, Inc. — Earnings Quality Grade C
PENG · Technology
Some red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 82 days, change +4 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 16.9%, CFFO 41.3%. Cash follows revenue
Expense Quality
Inventory growth 68.8% exceeds COGS 17.4%
CapEx growth -53.6% vs revenue 16.9%. Normal
SG&A/Gross Profit = 60.4%. Normal
Gross margin 28.8%, change -0.3pp. Stable
Cash Flow Quality
CFFO/NI = 4.30. Profits backed by cash
FCF $0.1B, FCF/NI = 3.94
Accruals ratio = -5.2%. Low accruals
Cash $0.5B covers 86% of debt $0.5B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 39% of equity
Debt/EBITDA = 4.7x (>4x). Financial stress
Other assets -3.7% vs revenue 16.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -18% YoY. Normal
Manipulation Score
M-Score = -2.51 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25