Advent Convertible and Income Fund (AVK)

FairStock Score: 67/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at AVK not as an operating company with a durable moat, but as a managed pool of convertible and lower-grade income securities. On 2026-10-13, it closed at $11.58. FairStock calculates a P/E of 3.52, P/B of 0.86, EPS of $3.29, ROE of 26.24%, ROCE of 2.29%, D/E of 0.59, and a dividend yield of 11.66%. The Graham Number is $31.48, implying a 63.21% margin of safety, and the FairStock Score is 67/100. But the quality signals are mixed: Piotroski F-Score is 2/9 and Altman Z-Score is 1.00. The fund invests about 60% in convertibles, with the rest in lower-grade non-convertible income securities. That is not a wide moat; it is a credit and manager-skill story. Leverage of 0.59 can magnify returns, but it can also magnify losses. Growth trajectory is hard to judge because revenue and profit growth are N/A, and FairStock’s Lynch category is none because it has only 0 years of filed annual results—three are needed. At $11.58, the P/B discount and low P/E look attractive, and the high yield is alluring. Yet for a leveraged credit fund, a discount can persist, and an 11.66% yield may be compensation for real credit risk. I would want evidence of distribution coverage, NAV stability, and disciplined leverage before treating the cheapness as a true bargain.

In plain English: Advent Convertible and Income Fund is a closed-end fund that invests mostly in convertible bonds and lower-rated income securities. It pays a very high dividend and trades below its reported net asset value, but it uses borrowed money and holds riskier bonds. The price looks cheap based on reported earnings and book value, though the fund shows some signs of financial weakness.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer