PIMCO Income Strategy Fund II (PFN)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

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

I approach PFN not as a normal company but as a closed-end fixed income vehicle. It is managed by Allianz and co-managed by PIMCO, and invests in U.S. fixed income, primarily high-yield senior floating-rate loans. That gives it a specialist's edge, but not a wide moat: credit selection and leverage, not pricing power, drive results. At the close on 2026-10-13, price was $6.20, and FairStock calculates P/B at 0.89, so the market is paying about 89 cents for each dollar of book value. The 13.90% dividend yield is eye-catching, and beta of 0.55 suggests lower sensitivity to broad equity markets than a stock fund. But high distributions can be a warning if they are not covered. Financial health is mixed: ROE 9.84% and ROCE 5.53% are positive, and D/E of 0.40 is moderate for a leveraged fund, yet FairStock's Piotroski F-Score is 0/9 and Altman Z-Score is 1.00. Those scores are built for operating companies, but they still argue for caution, especially with a 52-week range of $6.15–$7.59 and the price near the low. Growth is not cleanly measurable: revenue and profit growth are N/A, and the Lynch category is none because there are only 0 years of filed results. FairStock Score 61/100 is middling. For a Graham-style buyer, the discount to book is the main attraction; the offset is credit risk, distribution sustainability, and leverage. I would need evidence that the payout is covered before treating the yield as durable.

In plain English: PIMCO Income Strategy Fund II is a closed-end fund that invests mostly in high-yield floating-rate loans. Based on the numbers provided, it looks inexpensive compared with the value of its assets, but its financial-strength scores are weak and the dividend yield is very high, which can signal higher risk. The price is near the low end of its 52-week range, so the market appears cautious.

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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