CPS Technologies Corporation (CPSH): fair value, margin of safety and Wheel Score

Is CPSH undervalued?

CPS Technologies Corporation (CPSH) closed at 3.59 on 16 Oct 2026, 2904% above the GLS average fair value of 0.1195. 5 of the 5 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.

The 5 models disagree widely: EPV gives 0.0223 while Graham Number gives 0.2871. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files CPSH under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.

Nine valuation models for CPSH

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is weak: CPSH passes 3 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 1.5 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 1.7%, ROE 1.7%, ROA 1.4% - with debt at 0.01 times equity and negative free cash flow.

CPS Technologies Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain.

Institutional ownership scores 3/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 23: Weak

CPSH scores 23 out of 100 on the Wheel Score, in the Weak band (under 50). Value 0/25, Health 7/20, Moat 2/15, Premium 9/20, Stability 5/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.

Implied volatility is 105% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (9 of 20) because volatility this high usually comes with a reason. Chain open interest is 24,389 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 239k shares a day on a market cap of $69M, with a beta of 2.10 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 5 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 4 Nov 2026, 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Hardware, Equipment & Parts

The 12 companies below are the closest to CPS Technologies Corporation by market cap within the Hardware, Equipment & Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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