Sound Point Meridian Capital Inc (SPMC): fair value, margin of safety and Wheel Score

Is SPMC undervalued?

Sound Point Meridian Capital Inc (SPMC) closed at 6.20 on 5 Nov 2026. The GLS average fair value - the simple average of the 1 valuation models that produced a positive number - is 37.96, which puts the price 84% below it. 1 of the 1 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.

The average is built from just 1 models (DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.

The nightly engine files SPMC 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. It also carries the Income tag (Income = a dividend yield of 4% or more).

Nine valuation models for SPMC

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

Sound Point Meridian Capital Inc scores only 1 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. On durability SPMC scores 5.5/10 on the GLS Moat - a middle reading; the Moat Score tab on the Quote page's Financials view shows which of the four parts hold it back.

Returns on capital are thin or negative - ROIC -48.8%, ROE -63.5%, ROA -33.7% - with debt at 0.30 times equity and negative free cash flow.

The dividend yield is high at 41.61% (payout ratio -16583%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.

Institutional ownership scores 7/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 27: No options

No options are listed on Sound Point Meridian Capital Inc in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 27, under 70) and is left out of every options scan; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 23k shares a day on a market cap of $128M, with a beta of 1.20; the Stability part of the Wheel Score rates that fair.

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

Sound Point Meridian Capital Inc reports earnings on 12 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk. The shares go ex-dividend on 13 Nov 2026 (0.1300 per share), so a covered call sold before then carries a small early-assignment risk around that date.

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

Similar stocks in Asset Management

The 12 companies below are the closest to Sound Point Meridian Capital Inc by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare SPMC with 7 of them   All Financial Services stocks →