Flaherty & Crumrine Preferred and Income Securities Fund Incorporated (FFC)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

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

I approach this as a closed-end preferred income fund, not an operating business. FFC invests in investment-grade preferred securities, mostly hybrid or taxable preferreds, and at the 2026-10-13 close of $14.83 it offers a 7.88% dividend yield. The FairStock P/B is 0.85, so the market price is below stated book value; the FairStock Graham Number is $26.27, implying a 43.55% margin of safety on that calculation. The FairStock P/E is 8.52, and beta is 0.77, suggesting a less volatile ride than equities broadly. ROE is 10.12%, but ROCE is only 3.83%, and D/E is 0.60, so returns are modest and leverage adds sensitivity to credit spreads and rates. The quality signals are mixed: a FairStock score of 62/100, Piotroski F-Score 2/9, and Altman Z-Score 0.80 are not the marks of a fortress balance sheet, though for a fund those ratios need caution. There is no meaningful competitive moat; the manager's edge must come from credit selection and a favorable discount/premium. Growth data are unavailable, and the Lynch category is none because there are zero years of filed results, so I cannot judge a durable track record. The price looks statistically cheap, but the high distribution and weak financial-health scores mean the margin of safety depends on credit quality and the discount holding. I would want evidence over time.

In plain English: Flaherty & Crumrine Preferred and Income Securities Fund is a closed-end fund that invests mostly in preferred securities of U.S. companies. It pays a high dividend and trades below its stated book value, but the financial-strength signals are mixed and there is no long track record in the data. Based on the numbers provided, the shares look somewhat cheap, though that comes with credit and income-fund risks.

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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