First Trust Senior Floating Rate Income Fund II Common Shares of Beneficial Interest (FCT)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

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

I am looking at First Trust Senior Floating Rate Income Fund II as a closed-end fund, not an operating business. It invests in senior secured floating-rate corporate loans and benchmarks against the S&P/LSTA Leveraged Loan Index. On 2026-08-11 the shares closed at $9.70, with a $254.4 million market cap. FairStock's calculations show P/B 0.94, dividend yield 11.90%, beta 0.30, P/E 22.05, ROE 6.12%, ROCE 4.25%, and D/E 0.15. The Graham Number is $9.88, leaving only 1.82% margin of safety. That is not a bargain in the Graham sense; it is roughly fair value with a small discount to book. The quality signals are mixed. A Piotroski F-Score of 2/9 is weak, and the 22.05 P/E is not cheap for a fund earning 6.12% on equity. The Altman Z-Score of 5.65 looks strong on the provided data, and low D/E suggests modest balance-sheet leverage. But a closed-end loan fund has no obvious durable moat; its results depend on credit selection, leverage costs, and the floating-rate environment. Growth is hard to judge: revenue and profit growth are N/A, and FairStock assigns no Lynch category because there are only 0 years of filed results versus the 3 needed. So I have no filed multi-year record to establish consistency. The 11.90% yield is the main attraction, but the data do not tell me whether distributions are covered. At $9.70, I would call it fairly priced, perhaps slightly cheap versus book, but not a clear value opportunity without more history.

In plain English: This is a fund that owns senior secured floating-rate corporate loans. It pays a very high income yield, and its shares closed at $9.70 on 2026-08-11 at a small discount to the value of its assets. However, the fund's recent financial scorecard is weak and there is not enough filed history to judge growth, so the price looks about fair rather than clearly cheap or expensive.

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Data as of 2026-08-11 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