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

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

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

I see a closed-end fund, not an operating business. Its portfolio is convertible securities and below-investment-grade high-yield bonds, so its quality is mostly a function of credit spreads, interest rates, and manager skill rather than a durable competitive moat. At the 2026-10-13 close of $14.28, FairStock’s calculations show a P/B of 0.90, a P/E of 4.01, a 9.68% dividend yield, an ROE of 17.18%, a ROCE of 1.83%, and a low D/E of 0.11. The discount to book and the Graham Number of $41.60, with a 65.67% margin of safety, look tempting. But I do not take those as proof of value. The Piotroski F-Score is only 1/9, the Altman Z-Score is 2.36, and the ROCE of 1.83% suggests weak capital efficiency despite the high ROE. There is no revenue or profit growth data, and no Lynch category can be assigned because there are only 0 years of filed results, versus the three needed. FairStock Score of 65/100 is middling. The 9.68% yield may attract income buyers, but high-yield and convertible credit risk plus a beta of 1.21 mean principal can erode. I would want clearer distribution coverage and a longer filing history before treating the discount as a true margin of safety. Cheap-looking is not the same as safe.

In plain English: Virtus Convertible & Income Fund II is a pooled fund that owns convertible securities and lower-rated high-yield bonds. It pays a very high income and trades for less than the value of its assets on paper, which can make it look cheap. But the fund has weak financial-quality signals and a short filed record, so the low price comes with real credit and income risk.

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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