Eaton Vance Risk-Managed Diversified Equity Income Fund Common Shares of Beneficial Interest (ETJ)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

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

As a Buffett/Graham style investor, I start with business quality and margin of safety. Eaton Vance Risk-Managed Diversified Equity Income Fund is not an operating company but a closed-end fund that holds U.S. equities and overlays out-of-the-money S&P 500 puts and calls, rolling them on staggered dates. That strategy may moderate risk and generate income, but it also caps upside and adds complexity; I see no durable competitive moat beyond Eaton Vance Management's execution. On 2026-10-13, the shares closed at $8.18, with a $565.0 million market cap and a 9.55% dividend yield. The yield is the headline attraction. However, the FairStock P/E is 28.21, and FairStock's Graham Number is $7.74, so the price sits 5.68% above that value marker—a negative margin of safety. The FairStock Score is only 39/100, and the Piotroski F-score is 1/9, which suggests weak financial signals in the supplied data. The Altman Z-score of 130.84 is not a meaningful conventional test for a fund. Other fundamental inputs—P/B, ROE, ROCE, D/E, revenue growth, profit growth—are not available, so I cannot verify operating strength. The Lynch category is none because only 0 years of filed results are available under FairStock's rules, meaning there is little history to judge. The 52-week range is $7.88-$9.00, so the current price is nearer the lower end, but cheapness requires more than a range. I would want a wider discount to intrinsic value and evidence that distributions are supported. Income is visible; value and quality are not.

In plain English: Eaton Vance Risk-Managed Diversified Equity Income Fund is a closed-end fund that owns U.S. stocks and uses options to try to reduce risk and pay income. Based on the numbers given, its business quality looks weak and the share price looks a bit high compared with its stated value measures. The high dividend yield is a clear attraction, but the fund has little filed history and weak financial signals.

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