Stock fact sheet · data as of
Neonode Inc. (NEON): fair value, margin of safety and Wheel Score
Technology · Hardware, Equipment & Parts · Sweden · Speculative / Distressed
Is NEON undervalued?
At 0.8002 (close of 16 Oct 2026), NEON trades 91% below the GLS average fair value of 8.47. That average comes from 6 models run on the latest filings, and 5 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 Neonode Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 6 models disagree widely: GLS Growth gives 0.7801 while Graham Growth gives 27.67. 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 NEON 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 NEON
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 | 1.25 | +56% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 3.67 | +359% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 27.67 | +3358% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 12.10 | +1412% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.7801 | -3% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| 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 | 5.38 | +572% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 1.44 | +79% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: NEON 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 3.3 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 high - ROIC 33.9%, ROE 34.4%, ROA 31.6% - with debt at 0.02 times equity and negative free cash flow.
Neonode 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 License Fees 93%, Non recurring Engineering 8% (quarter Q2 FY2026).
Institutional ownership scores 2/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 3 / 9 | ROIC | 33.9% |
|---|---|---|---|
| GLS Moat | 3.3 / 10 | ROE | 34.4% |
| Debt / equity | 0.02 | ROA | 31.6% |
| Free-cash-flow yield | -83.7% | Payout ratio | 0% |
| Institutions | 2 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 45: Weak
NEON 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 7/20, Moat 5/15, Premium 5/20, Stability 6/20. 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 297%, far above the range the wheel strategy is built for. The premium looks generous; the Wheel Score gives it only 5 of 20 Premium points because moves of that size can blow through any strike. Chain open interest is 3,497 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 21k shares a day on a market cap of $13M, with a beta of 1.12; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 91% margin of safety | |
| Health | 7 / 20 | Piotroski 3/9 | |
| Moat | 5 / 15 | moat 3.3/10 | |
| Premium | 5 / 20 | implied volatility 297% | |
| Stability | 6 / 20 | 21k shares/day, $13M cap, beta 1.12 |
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 11 Nov 2026, 26 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 Neonode Inc. 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.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| WETH Wetouch Technology Inc. | 0.9752 | 9.92 | +90% | 39No options | $12M |
| LCTC Lifeloc Technologies, Inc. | 4.00 | - | - | 29No options | $11M |
| WELX Winland Holdings Corporation | 3.34 | 4.75 | +30% | 39No options | $17M |
| INHD Inno Holdings Inc. | 3.94 | 1,203.21 | +100% | 39No options | $18M |
| OST Ostin Technology Group Co., Ltd. | 1.70 | - | - | 24No options | $10M |
| TRCK Track Group, Inc. | 0.5000 | 14.97 | +97% | 39No options | $21M |
| REFR Research Frontiers Incorporated | 0.6299 | - | - | 29Weak | $22M |
| SCND Scientific Industries, Inc. | 0.6840 | - | - | 22No options | $8M |
| DYSL Dynasil Corporation of America | 1.80 | - | - | 27No options | $27M |
| DAIO Data I/O Corporation | 2.68 | - | - | 30Weak | $28M |
| MVIS MicroVision, Inc. | 1.23 | - | - | 39Weak | $29M |
| AATC Autoscope Technologies Corporation | 5.66 | 8.42 | +33% | 39No options | $31M |
Screen the whole market the same way
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Start free See the Sunday ScanQuestions about NEON
Is NEON undervalued right now?
By the GLS models, yes: at 0.8002 the stock is 91% below the average fair value of 8.47 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of NEON and what does it mean?
NEON 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 NEON?
8.47 per share as of 16 Oct 2026 - the simple average of the 6 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 Neonode Inc. report earnings next?
The next earnings report is due on 11 Nov 2026, 26 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does NEON have listed options, and how liquid are they?
Yes. The nightly snapshot found 36 listed contracts with 3,497 open interest across all expiries and implied volatility of 297% 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.