Virtus Convertible & Income Fund Common Shares of Beneficial Interest (NCV)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

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

I look at NCV first as a closed-end fund, not an operating company. It invests in convertible securities and below-investment-grade high-yield bonds, so the quality of the portfolio and the cost of leverage matter more than a traditional moat. At the 2026-10-13 close of $15.33, the fund trades at 0.87 times book value, and FairStock’s P/E is 4.12. FairStock also calculates a Graham Number of $42.92, leaving a 64.28% margin of safety, and the dividend yield is 10.16%. Those are superficially cheap and income-rich figures. The debt-to-equity ratio is modest at 0.22, and ROE is 16.48%, but ROCE is only 1.89%. That tells me returns may depend heavily on portfolio gains and distributions rather than a durable operating franchise. The financial-strength checks are troubling: Piotroski F-Score is 1/9 and Altman Z-Score is 1.50. The fund also has only 0 years of filed results, so no Peter Lynch category can be assigned; the rules require 3 years. Revenue and profit growth are not provided. Beta is 1.19, so it can swing with markets. In Graham terms, I see an asset discount and high yield offset by weak safety signals and little history. A low price is not the same as a safe price; I would want evidence that distributions are covered and book value is stable before calling this a true bargain.

In plain English: Virtus Convertible & Income Fund is a closed-end fund that invests in convertible securities and lower-rated high-yield bonds. Its price looks low compared with the value of its assets, and it pays a high dividend, but the financial-strength checks are weak and there is very little filing history to judge consistency.

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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