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Upturn AI SWOT - About
Penguin Solutions, Inc. (PENG)
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Upturn Advisory Summary
04/01/2025: PENG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 25.51% | Avg. Invested days 44 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 830.23M USD | Price to earnings Ratio - | 1Y Target Price - |
Price to earnings Ratio - | 1Y Target Price - | ||
Volume (30-day avg) 685265 | Beta 1.67 | 52 Weeks Range 14.87 - 29.81 | Updated Date 02/26/2025 |
52 Weeks Range 14.87 - 29.81 | Updated Date 02/26/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.85 |
Earnings Date
Report Date 2025-04-07 | When Before Market | Estimate - | Actual - |
Profitability
Profit Margin -4.48% | Operating Margin (TTM) 3.1% |
Management Effectiveness
Return on Assets (TTM) 0.86% | Return on Equity (TTM) -13.3% |
Valuation
Trailing PE - | Forward PE 9.5 | Enterprise Value 1182978810 | Price to Sales(TTM) 0.71 |
Enterprise Value 1182978810 | Price to Sales(TTM) 0.71 | ||
Enterprise Value to Revenue 1.01 | Enterprise Value to EBITDA 18.8 | Shares Outstanding 52914800 | Shares Floating 51435352 |
Shares Outstanding 52914800 | Shares Floating 51435352 | ||
Percent Insiders 2.46 | Percent Institutions 108.09 |
Analyst Ratings
Rating 4.43 | Target Price - | Buy 4 | Strong Buy 3 |
Buy 4 | Strong Buy 3 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Penguin Solutions, Inc.
Company Overview
History and Background
Penguin Solutions, Inc., founded in 1998 as Linux Networx, is a provider of high-performance computing (HPC), artificial intelligence (AI), and enterprise data center solutions. Initially focused on Linux-based clusters, the company has evolved through acquisitions and organic growth to offer a broader portfolio including hardware, software, and services.
Core Business Areas
- HPC Solutions: Offers customized high-performance computing solutions including servers, storage, and networking components optimized for computationally intensive workloads.
- AI & Analytics: Provides AI-optimized hardware and software solutions for deep learning, machine learning, and data analytics applications.
- Cloud & Hybrid Cloud Solutions: Helps organizations build and manage cloud infrastructure including bare metal server, private cloud and hybrid cloud solutions.
- Professional Services: Offers consulting, design, deployment, and support services for HPC, AI, and cloud solutions.
Leadership and Structure
Pete Ungaro is the CEO. The company has a matrix organizational structure, with functional departments (e.g., engineering, sales, marketing) and business units focused on specific solution areas.
Top Products and Market Share
Key Offerings
- Relion Servers: High-performance servers designed for HPC and AI workloads. Market share is difficult to pinpoint exactly but is estimated to be below 5% of the overall server market, competing with Dell Technologies, Hewlett Packard Enterprise, and Lenovo. Relion servers include the latest CPU and GPU technologies from AMD, Intel and NVIDIA.
- Scyld ClusterWare: Cluster management software for HPC environments. Market share is small, competing with open-source solutions and commercial offerings from other HPC vendors. It simplifies the management, monitoring, and resource allocation of HPC clusters.
Market Dynamics
Industry Overview
The HPC and AI infrastructure market is experiencing significant growth driven by increasing demand for compute-intensive applications in areas such as scientific research, drug discovery, financial modeling, and autonomous vehicles. The cloud computing sector is also steadily expanding.
Positioning
Penguin Solutions is a niche player in the HPC and AI infrastructure market, focusing on providing customized solutions to government, academic, and enterprise customers. It differentiates itself through its expertise in open-source technologies and its ability to tailor solutions to specific customer requirements.
Total Addressable Market (TAM)
The HPC market is projected to reach $55 billion by 2027. Penguin Solutions is positioned to capture a share of this market by offering tailored solutions and services to specific verticals.
Upturn SWOT Analysis
Strengths
- Expertise in open-source technologies
- Strong relationships with government and academic customers
- Customized solutions tailored to specific customer needs
- Agile and responsive to emerging market trends
Weaknesses
- Smaller scale compared to larger competitors
- Limited brand recognition outside of niche markets
- Dependence on key partnerships
- Slower product development cycles compared to larger players
Opportunities
- Growing demand for HPC and AI solutions
- Expansion into new vertical markets (e.g., healthcare, finance)
- Partnerships with cloud service providers
- Increased adoption of hybrid cloud solutions
Threats
- Intense competition from larger vendors
- Rapid technological advancements
- Economic downturns
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- Dell Technologies (DELL)
- Hewlett Packard Enterprise (HPE)
- Lenovo Group (LNVGY)
Competitive Landscape
Penguin Solutions competes with larger vendors by offering customized solutions and focusing on specific niche markets. Its expertise in open-source technologies and its strong relationships with government and academic customers provide a competitive advantage.
Major Acquisitions
Acquired Company Name
- Year: 2022
- Acquisition Price (USD millions): 50
- Strategic Rationale: Expanded software capabilities in AI workload management. Strengthened the AI product segment.
Growth Trajectory and Initiatives
Historical Growth: Growth is driven by increasing demand for HPC and AI solutions in key verticals.
Future Projections: Projected growth is expected to be in line with the overall HPC and AI infrastructure market, driven by increasing adoption of these technologies across various industries. Analysts predict moderate growth over the next 5 years.
Recent Initiatives: Partnerships with AMD, NVIDIA, and Intel to integrate their latest hardware into Relion servers. Investments in AI and machine learning capabilities.
Summary
Penguin Solutions is a niche provider in the HPC and AI market. Its strength lies in customized solutions and open-source expertise. While growth opportunities exist, competition from larger players and rapid technology changes pose threats. Focus on niche customization and strong partnerships make it a sustainable business. The relatively small size is both a strength and a weakness.
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Sources and Disclaimers
Data Sources:
- Company Website
- Industry Reports
- Market Analysis
- Press Releases
Disclaimers:
Data is based on publicly available information and market estimates. Actual results may vary. This analysis is for informational purposes only and does not constitute investment advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Penguin Solutions, Inc.
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 2017-05-24 | President, CEO & Director Mr. Mark W. Adams | ||
Sector Technology | Industry Information Technology Services | Full time employees 2700 | Website https://www.penguinsolutions.com |
Full time employees 2700 | Website https://www.penguinsolutions.com | ||
Penguin Solutions, Inc. engages in the designing and development of enterprise solutions worldwide. It operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers dynamic random access memory modules, solid-state and flash storage, and other advanced integrated memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services. The company also provides Penguin Computing that focus on technical computing for core and cloud environments through high-performance computing and AI solutions; and Penguin Edge, an edge computing solution for embedded and wireless applications, such as high-performance products for government, health care, manufacturing, and telecommunications applications. In addition, it offers Stratus, which provides simplified, protected, and autonomous fault tolerant computing solutions in the data center and at the Edge through hardware and software services; and solutions to education, energy, financial services, government, hyperscale, and manufacturing markets. Further, the company provides LED chip products comprising blue and green LED chips based on gallium nitride, and related materials under Cree LED brand; and surface mount devices under the Cree LED XLamp and J Series brands. It sells its products directly to original equipment manufacturers, enterprise, government and other end customers through direct sales force, e-commerce, customer service representatives, on-site field application engineers, independent sales representatives, distributors, integrators, and resellers. The company was formerly known as SMART Global Holdings, Inc. and changed its name to Penguin Solutions, Inc. in October 2024. Penguin Solutions, Inc. was founded in 1988 and is based in Grand Cayman, Cayman Islands.
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