Western Asset Intermediate Muni Fund Inc Common Stock (SBI)

FairStock Score: 35/100 — MIXED

Key Financials

Strengths

• Generates $904,115 in annual free cash flow (0.8% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.41, providing financial flexibility
• Attractive 6.5% dividend yield providing steady income returns

Concerns

• Trades significantly above Graham Number ($5) with negative 67% margin of safety—limited downside protection
• Weak Piotroski F-Score of 1/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Western Asset Intermediate Muni Fund Inc Common Stock is a micro-cap financial services company valued at $108 million. Revenue stands at $7 million. From a quality standpoint, Western shows weak Piotroski F-Score of 1/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 1.2 warrants caution. On valuation, the stock is commanding a steep 70.3x multiple, with trades above its Graham Number with a negative 67% margin. The 6.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 35/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $904,115 in annual free cash flow (0.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 70x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer