Reaves Utility Income Fund Common Shares of Beneficial Interest (UTG)

FairStock Score: 64/100 — STEADY

Key Financials

AI Analysis

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

I am wary of confusing a closed-end fund's accounting with an operating business's economics. UTG invests in utility equities and debt. At the 2026-10-13 close of $36.41, FairStock calculates a market cap of $3.8B, a P/B of 0.83, and a dividend yield of 7.01%. That discount to book and high distribution yield are the main attractions. The Graham Number of $109.87 and margin of safety of 66.86% imply deep statistical cheapness. But I would not take those at face value. A P/E of 2.64 and ROE of 36.07% are extraordinary, while ROCE is just 0.89%; that mix suggests fund-specific accounting or distribution effects rather than a high-return utility franchise. The Piotroski F-Score of 0/9 is a red flag on fundamental momentum, and the Lynch category is none because only 0 years of filed results are available; I cannot judge a multi-year record. The balance sheet shows D/E of 0.23, modest leverage, and an Altman Z-Score of 2.96, which is not distressed but not fortress-like. Beta of 0.86 suggests less volatility than the market, consistent with utilities. The fund may have a structural niche in utility income, but I see no durable competitive moat; its results depend on management, leverage, interest rates, and the utility sector. Growth metrics are unavailable, so I have no evidence of compounding. A closed-end fund can be a sound income vehicle when bought at a discount, but the discount must be real and the distribution must be covered. Here, the price looks statistically cheap, yet the quality and sustainability are unproven.

In plain English: Reaves Utility Income Fund owns a mix of utility company stocks and bonds, aiming to pay investors income. Its price is below the value of its underlying assets, and it pays a high income, but the fund's accounting signals are mixed and there is very little filed history to judge. On the numbers given, it looks cheaper than its asset value but not clearly a strong operating business.

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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