Unit Corporation (UNTC): fair value, margin of safety and Wheel Score

Is UNTC undervalued?

Unit Corporation (UNTC) closed at 31.25 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 48.19, which puts the price 35% below it. 5 of the 9 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 9 models disagree widely: GLS Growth gives 6.34 while 10 Cap gives 118.25. 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 UNTC under High Yield Income: a dividend yield above 4%.

Nine valuation models for UNTC

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 average - UNTC passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.5 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 high - ROIC 14.8%, ROE 14.9%, ROA 12.2% - with debt at 0.01 times equity and a free-cash-flow yield of 17.5%.

The dividend yield is high at 16.00% (payout ratio 232%) - a payout above 100% of earnings, which is not covered by profits. 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. Revenue comes mainly from Oil and Gas 51%, Oil and Gas Service 49% (quarter Q1 FY2023).

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

Wheel Score 39: No options

UNTC has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 5k shares a day on a market cap of $309M, with a beta of -0.19 - a low beta, so day-to-day moves are smaller than the market's; 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

No upcoming earnings date is recorded for UNTC in the nightly calendar.

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

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The 12 companies below are the closest to Unit Corporation by market cap within the Oil & Gas Exploration & Production industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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