First Trust Mortgage Income Fund Common Shares of Beneficial Interest (FMY)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

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

I approach this as a closed-end mortgage fund, not an operating business. It is managed by First Trust Advisors and co-managed by Brookfield, investing in mortgage-backed securities, collateralized mortgage obligations, and residential and commercial mortgage-backed securities. That gives it no durable moat in the Buffett sense; returns depend on credit selection, prepayment behavior, and the spread between mortgage yields and funding costs, not on pricing power. The provided balance-sheet sign is friendly: D/E is 0.00, and the Altman Z-Score is 8.28, suggesting low distress risk. But quality is mixed: ROE is only 5.54%, ROCE 2.43%, and the Piotroski F-Score is 1/9, which tells me reported fundamentals are weak. At the 2026-10-13 close of $10.91, the market cap is $50.7M. FairStock calculations show P/B 0.86, P/E 15.37, a Graham Number of $14.34, and a 23.92% margin of safety. The 6.80% dividend yield is attractive, but I cannot verify distribution coverage from the supplied data. Growth is unclear: no revenue-growth or profit-growth figures are provided, and the Lynch category is none because only 0 years of filed results are available. The 52-week range of $10.67-$12.36 suggests the shares are near the low end, and beta 0.26 points to low volatility. Overall, this looks like a modestly cheap but unproven income vehicle; I would want more filed history and evidence that the distribution is earned, not merely paid.

In plain English: This fund owns mortgage-backed bonds and pays income to shareholders. The business looks only so-so: it earns a modest return on its money and the supplied quality signals are weak, though it carries no debt. At $10.91, the price is below its calculated asset value and below a conservative value estimate, so it looks somewhat cheap, but it is near the bottom of its 52-week range and lacks a long filed track record.

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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