Strategy Inc (STRC): fair value, margin of safety and Wheel Score

Is STRC undervalued?

Strategy Inc (STRC) closed at 99.74 on 16 Oct 2026. None of the nine GLS valuation models produced a positive value for the stock - the company lost money over the last twelve months, EPS -61.69, it pays no dividend and its debts exceed what its assets would fetch - so there is no GLS average fair value and no margin of safety to report. The quality, option and event numbers below still apply; the Quote page's Wall Street View shows what analysts expect instead.

The nightly engine files STRC 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 STRC

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

Financial health is weak: STRC 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 1.5 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 -6.5%, ROE -7.5%, ROA -6.2% - with debt at 0.16 times equity and negative free cash flow.

Strategy 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 Product Licenses And Subscription Servi… 50%, Subscription And Circulation 47%, License 3% (quarter Q2 FY2026).

Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 38: Weak

STRC scores 38 out of 100 on the Wheel Score, in the Weak band (under 50). Value 13/25, Health 7/20, Moat 2/15, Premium 3/20, Stability 14/20. 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 18% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (3 of 20 points). Chain open interest is 29,587 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 2.5M shares a day on a market cap of $33.0B, with a beta of 3.54 - 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 14 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

Strategy 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. The shares go ex-dividend on 30 Oct 2026 (0.5000 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 Software - Application

The 12 companies below are the closest to Strategy Inc by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare STRC with 7 of them   All Technology stocks →