Is Penguin Solutions, Inc. (PENG) Halal?

NASDAQ Technology United States $877M
✗ NOT HALAL
Confidence: 90/100
Penguin Solutions, Inc. (PENG) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 54.7% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Penguin Solutions, Inc. operates in the Technology sector.

Shariah Screening — 5 Standards

Based on financial data from August 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 54.7%
/ 30%
47.3%
/ 30%
32.1%
/ 30%
1.31%
/ 5%
✗ NOT HALAL
DJIM 54.7%
/ 33%
47.3%
/ 33%
32.1%
/ 33%
1.31%
/ 5%
✗ NOT HALAL
MSCI 32.4%
/ 33%
28.1%
/ 33%
19.0%
/ 33%
1.31%
/ 5%
✓ HALAL
S&P 54.7%
/ 33%
47.3%
/ 33%
32.1%
/ 33%
1.31%
/ 5%
✗ NOT HALAL
FTSE 32.4%
/ 33%
28.1%
/ 33%
19.0%
/ 50%
1.31%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
75.9
Forward: 6.9
EPS
$0.22
P/B Ratio
2.3
EV/EBITDA
8.3
EV: $1.2B
Revenue
$1.4B
Growth: 0.6%
Beta
2.2
High volatility
Current Ratio
2.3

Profitability

Gross Margin 28.7%
Operating Margin 6.9%
Net Margin 1.9%
Return on Equity (ROE) 5.7%
Return on Assets (ROA) 3.4%

Cash Flow & Balance Sheet

Operating Cash Flow$109M
Free Cash Flow$100M
Total Debt$525M
Debt-to-Equity87.6
Current Ratio2.3
Total Assets$1.6B

Price & Trading

Last Close$17.66
50-Day MA$18.94
200-Day MA$21.62
Avg Volume1.2M
Beta2.2
52-Week Range
$14.20
$29.80

About Penguin Solutions, Inc. (PENG)

CEO
Mr. Kash Shaikh
Employees
2,900
Sector
Technology
Industry
Information Technology Services
Country
United States
Exchange
NASDAQ
Market Cap
$877M
Currency
USD

Penguin Solutions, Inc. designs, builds, deploys and manages enterprise solutions worldwide. The company operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers hardware, software, and services focusing on technical computing for core and cloud environments through high-performance computing and AI solutions under the Penguin Solutions, Penguin Computing, Stratus, and Penguin Edge brands. The company also provides Penguin Solutions OriginAI, an AI infrastructure solution for customers deploying GPUs at scale; continuous availability of customers critical data and applications in data centers and edge locations under the Stratus brand products; and dynamic random-access memory, modules, solid-state/flash storage, and other integrated memory solutions to networking and telecom, data analytics, AI, and ML under the SMART Modular Technologies brand. In addition, it provides Zefr, a memory module; Altus and AMD EPYC based servers for expansive memory for AI workloads; flash memory products comprising solid-state drives, Serial Advanced Technology Attachment, and PCIe NVMe products in 2.5 enclosures, M.2, EDSFF, and other module form factors; and multimediacard and embedded and removable USB products, and SD and microSD Card configurations, as well as firmware development. Further, the company offers procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging supply chain services; and LEDs under the Cree LED brand; Cree LED XLamp and J Series packaged LED components. It serves OEMs, enterprise, government, and other end customers through direct and third-party channels. The company has a collaboration with Deepgram and Dell Technologies. 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 headquartered in Fremont, California.

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Frequently Asked Questions

Is Penguin Solutions, Inc. (PENG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Penguin Solutions, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Penguin Solutions, Inc.'s debt ratio?

Penguin Solutions, Inc.'s debt ratio is 54.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 32.4%.

What are Penguin Solutions, Inc.'s key financial metrics?

Penguin Solutions, Inc. has a market capitalization of $877M, trailing P/E ratio of 75.9, and revenue of $1.4B. The company maintains a gross margin of 28.7% and a net margin of 1.9%. Return on equity stands at 5.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.