MFS Charter Income Trust Common Stock (MCR)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

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

I approach MFS Charter Income Trust as a closed-end fixed-income fund managed by MFS, not as an operating business with a wide moat. It invests globally across corporate bonds, government securities, mortgage-backed and asset-backed debt, and emerging-market issuers. Its scale and manager expertise are advantages, but a bond fund has little pricing power; the portfolio’s credit and duration choices drive results. At the close on 2026-06-22, the price was $6.52, giving a market cap of $251.8M. The FairStock-calculated P/E is 15.52 and P/B is 0.97, so it trades slightly below book value. The 9.02% dividend yield is the main attraction, and beta of 0.64 suggests lower volatility than the broad market. Leverage is moderate at D/E 0.34. Valuation-wise, the Graham Number is $7.99, producing an 18.40% margin of safety; that is a positive sign. However, returns are modest: ROE 6.18% and ROCE 3.30%. Financial quality looks weak, with a Piotroski F-Score of 2/9 and an Altman Z-Score of 1.37. The price is at the top of its 52-week range of $5.84-$6.52, so recent momentum is strong but the cushion is thin. Growth cannot be assessed: revenue and profit growth are N/A, and the Lynch category is 'none' because only 0 years of filed results are available. Overall, this is an income vehicle with a modest valuation discount, but the weak quality scores and lack of track record data demand caution. I would want the discount to asset value and distribution sustainability to justify the risk.

In plain English: MFS Charter Income Trust is a closed-end fund that invests in bonds around the world, including government, company, mortgage and emerging-market debt. Its business looks mixed: it pays a very high income, but the supplied financial signals show some weakness. At $6.52, the price looks a little cheap compared with its assets and a simple value estimate, though it is near the top of its recent range.

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Data as of 2026-06-22 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