Stock fact sheet · data as of
Lumen Technologies, Inc. (LUMN): fair value, margin of safety and Wheel Score
Ticker symbol LUMN · Communication Services · Telecommunications Services · United States · Speculative
Is LUMN undervalued?
At 4.47 (close of 5 Nov 2026), LUMN trades 560% over the GLS average fair value of 0.6769, with 0 of 2 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
Only 2 of the nine models produced a value (10 Cap, DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.
The nightly engine files LUMN under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for LUMN
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.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 1.34 | -70% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 0.0143 | -100% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -26.71 | -698% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 8.00 | +79% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: LUMN passes 3 of the nine Piotroski tests. Our scans drop the stock at the health filter; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 2.4 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC -10.5%, ROE 155.7%, ROA -5.1% - with debt at -15.85 times equity and negative free cash flow.
The dividend yield is 0.02% with a payout ratio of -0% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Business 87%, Mass Market 13% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 8/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 6 Aug 2026.
| Piotroski F-score | 3 / 9 | ROIC | -10.5% |
|---|---|---|---|
| GLS Moat | 2.4 / 10 | ROE | 155.7% |
| Debt / equity | -15.85 | ROA | -5.1% |
| Free-cash-flow yield | -21.4% | Payout ratio | -0% |
| Institutions | 9 / 10 | Insiders · Congress | 8 · 5 / 10 |
Wheel Score 22: Weak
LUMN scores 22 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 3, below fair value - trades 560% above our fair value; and filter 4, financially healthy - Piotroski 3/9 (under 6); and filter 5, can repay its debt - 3.7 years to repay its debt (over 3); and filter 6, no serious red flags - Red Flags score 55 (under 60); and filter 7, a premium worth selling - implied volatility 86% (over 80%); and filter 9, not a penny stock - price 4.47 (under $5), and the parts are thin too - value weak, premium fair, moat weak, health weak, red flags weak, option trading strong, stability weak. 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 86%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. The option chain is deep: 107,774 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 18.7M shares a day on a market cap of $4.6B, with a beta of 1.96 - 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 rates that weak.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Fails | trades 560% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 3/9 (under 6) |
| 5 | Can repay its debt | Fails | 3.7 years to repay its debt (over 3) |
| 6 | No serious red flags | Fails | Red Flags score 55 (under 60) |
| 7 | A premium worth selling | Fails | implied volatility 86% (over 80%) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Fails | price 4.47 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 560% above fair value | |
| Premium | Fair | implied volatility 86% | |
| Moat | Weak | moat 2.4/10 | |
| Health | Weak | Piotroski 3/9 | |
| Red Flags | Weak | Red Flags score 55/100 | |
| Option trading | Strong | 15,852 contracts a day, 107,774 open interest | |
| Stability | Weak | beta 1.96, $4.6B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Feb 2027, 89 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Telecommunications Services
The 12 companies below are the closest to Lumen Technologies, Inc. by market cap within the Telecommunications Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| IRDM Iridium Communications Inc. | 43.81 | 47.63 | +8% | 35Weak | $4.6B |
| TEO Telecom Argentina S.A. | 10.44 | 47.23 | +78% | 42Weak | $4.9B |
| TKC Turkcell Iletisim Hizmetleri A.S. | 4.73 | 18.98 | +75% | 47Weak | $4.1B |
| PHI PLDT Inc. | 18.12 | 42.74 | +58% | 37No options | $3.9B |
| VEON VEON Ltd. | 79.01 | 82.59 | +4% | 70Good | $5.4B |
| TDS Telephone and Data Systems, Inc. | 36.01 | 56.51 | +36% | 79Good | $3.9B |
| LBTYB Liberty Global plc | 11.76 | - | - | 15No options | $3.6B |
| LBTYA Liberty Global plc | 9.58 | - | - | 33Weak | $3.2B |
| LBTYK Liberty Global plc | 9.34 | - | - | 27Weak | $3.2B |
| KYIV Kyivstar Group Ltd. Common Shares | 13.62 | 28.80 | +53% | 83Good | $3.1B |
| LILAP Liberty Latin America Ltd. 9% Cum Perp Red Pfd Shs Series A When-issued | 19.90 | 37.96 | +48% | 25No options | $3.1B |
| AD Array Digital Infrastructure Inc | 33.23 | 112.42 | +70% | 34Weak | $2.9B |
⚖ Compare LUMN with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about LUMN
Is LUMN undervalued right now?
No: at 4.47 the stock trades 560% above the GLS average fair value of 0.6769 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of LUMN and what does it mean?
LUMN scores 22 out of 100 (Weak) - it fails Wheel Trade Filters 2, 3, 4, 5, 6, 7, 9. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for LUMN?
0.6769 per share as of 5 Nov 2026 - the simple average of the 2 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Lumen Technologies, Inc. report earnings next?
The next earnings report is due on 2 Feb 2027, 89 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does LUMN have listed options, and how liquid are they?
Yes. The nightly snapshot found 122 listed contracts with 107,774 open interest across all expiries and implied volatility of 86% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.