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 7.14 on 16 Oct 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 81% 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 / 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 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 2 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. 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. A GLS Moat score of 1.1/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

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 36.13% (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 6/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 37: No options

No options are listed on Sound Point Meridian Capital Inc in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 37) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 39k shares a day on a market cap of $147M, with a beta of 1.20; the Stability part of the Wheel Score gives that 6 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 12 Nov 2026 (before the open), 27 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium. 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 →