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Stock impact report

1 Profitable Stock on Our Buy List and 2 We Ignore [Yahoo! Finance]

Penguin Solutions, Inc. (PENG) 
Company Research Source: Yahoo! Finance
Not all profitable companies are created equal, and that's why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here is one profitable company that balances growth and profitability and two that may face some trouble. Trailing 12-Month GAAP Operating Margin: 4.2% Based in the US, Penguin Solutions (NASDAQ:PENG) is a diversified semiconductor company offering memory, digital, and LED products. Why Do We Pass on PENG? 4% annual revenue growth over the last five years was slower than its semiconductor peers Gross margin of 29.1% is below its competitors, leaving less money to invest in areas like marketing and R&D Low free cash flow margin of 6.2% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders Penguin Solutions is trading at $20.30 per share, or 9.8x forward P/E. To fully understand why you should be careful with PENG, check out our full rese Show less Read more
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