Western Asset Mortgage Opportunity Fund Inc. Common Stock (DMO)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

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

At the 2026-10-26 close of $9.58, this closed-end fund trades at a FairStock P/E of 11.14 and P/B of 0.85, with a FairStock Graham Number of $14.79 and a 35.90% margin of safety. On the surface that is Graham-style cheapness, and the 14.75% dividend yield plus 0.39 beta will attract income investors. But I do not see a durable moat: it is a mortgage-backed fixed-income fund managed by an outside adviser, and the supplied figures show modest returns—ROE 7.40% and ROCE 4.67%—alongside D/E of 0.85. Financial health is the real warning. FairStock's Piotroski F-Score is 1/9 and Altman Z-Score is 0.30, which is distress territory by that measure. The 52-week range of $9.29-$12.07 puts the price near the low end, so the market is already skeptical. Growth trajectory is unproven: revenue and profit growth are N/A in the data, and the Lynch category is none because there are only 0 years of filed results; I cannot underwrite a multi-year compounding record. The high distribution may be attractive, but with weak fundamental scores and leverage, I would treat the yield as something to monitor rather than a margin of safety in itself. Cheapness can be real, but here it comes with balance-sheet and earnings-quality risk.

In plain English: This is a fund that invests mainly in U.S. mortgage-backed bonds. The business looks weak on several financial health measures, even though it pays a very high dividend. At $9.58, the price looks cheap compared with its accounting value and a simple value estimate, but the weak health scores raise the risk.

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Data as of 2026-10-26 close · note generated 2026-10-28 · 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