Stock fact sheet · data as of
Lumen Technologies, Inc. (LUMN): fair value, margin of safety and Wheel Score
Communication Services · Telecommunications Services · United States · Speculative / Distressed
Is LUMN undervalued?
At 4.87 (close of 16 Oct 2026), LUMN trades 87% below the GLS average fair value of 36.25. That average comes from 1 models run on the latest filings, and 1 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Lumen Technologies, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
Only 1 of the nine models produced a value (10 Cap); 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 / 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 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 | 36.25 | +644% | 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 | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -26.71 | -648% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 8.00 | +64% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: LUMN passes 4 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 2.2 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 -10.5%, ROE 155.7%, ROA -5.1% - with debt at -15.85 times equity and a free-cash-flow yield of 16.7%.
Lumen Technologies, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. 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.
| Piotroski F-score | 4 / 9 | ROIC | -10.5% |
|---|---|---|---|
| GLS Moat | 2.2 / 10 | ROE | 155.7% |
| Debt / equity | -15.85 | ROA | -5.1% |
| Free-cash-flow yield | 16.7% | Payout ratio | -0% |
| Institutions | 9 / 10 | Insiders · Congress | 8 · 5 / 10 |
Wheel Score 45: Weak
LUMN scores 45 out of 100 on the Wheel Score, in the Weak band (under 50), capped at 45 because the engine files it as Speculative / Distressed. Value 25/25, Health 9/20, Moat 3/15, Premium 14/20, Stability 17/20. 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 83% 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 (14 of 20) because volatility this high usually comes with a reason. The option chain is deep: 527,172 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 34.7M shares a day on a market cap of $5.0B, with a beta of 1.86 - 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 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 87% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 3 / 15 | moat 2.2/10 | |
| Premium | 14 / 20 | implied volatility 83% | |
| Stability | 17 / 20 | 34.7M shares/day, $5.0B cap, beta 1.86 |
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
Lumen Technologies, Inc. reports earnings on 29 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
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. | 44.99 | 44.85 | -0% | 81Prime | $4.8B |
| TEO Telecom Argentina S.A. | 12.46 | 9,252.82 | +100% | 74Good | $5.4B |
| VEON VEON Ltd. | 80.46 | 82.98 | +3% | 66Good | $5.5B |
| TKC Turkcell Iletisim Hizmetleri A.S. | 5.03 | 182.74 | +97% | 87Prime | $4.4B |
| PHI PLDT Inc. | 19.38 | 936.14 | +98% | 39No options | $4.2B |
| LBTYB Liberty Global plc | 12.11 | 7.19 | -68% | 22No options | $3.7B |
| TDS Telephone and Data Systems, Inc. | 33.93 | 56.51 | +40% | 80Prime | $3.6B |
| LILAP Liberty Latin America Ltd. 9% Cum Perp Red Pfd Shs Series A When-issued | 20.06 | 45.03 | +55% | 39No options | $3.1B |
| AD Array Digital Infrastructure Inc | 33.51 | 112.42 | +70% | 45Weak | $2.9B |
| UZD Array Digital Infrastructure, Inc. 6.250% Senior Notes due 2069 | 17.54 | 125.50 | +86% | 39No options | $2.9B |
| UZE Array Digital Infrastructure, Inc. 5.500% Senior Notes due 2070 | 15.63 | 118.50 | +87% | 39No options | $2.9B |
| TIMB TIM S.A. | 18.30 | 107.10 | +83% | 90Prime | $8.7B |
⚖ Compare LUMN with 7 of them All Communication Services stocks →
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about LUMN
Is LUMN undervalued right now?
By the GLS models, yes: at 4.87 the stock is 87% below the average fair value of 36.25 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of LUMN and what does it mean?
LUMN scores 45 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for LUMN?
36.25 per share as of 16 Oct 2026 - the simple average of the 1 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 29 Oct 2026 (after the close), 13 days from the data date of 16 Oct 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 514 listed contracts with 527,172 open interest across all expiries and implied volatility of 83% 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.