Advent Convertible and Income Fund
Advent Convertible and Income Fund Fundamental Analysis
Advent Convertible and Income Fund (AVK) shows strong financial fundamentals with a PE ratio of 4.43, profit margin of 88.41%, and ROE of 22.98%. The company generates $0.1B in annual revenue with weak year-over-year growth of 1.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AVK's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAVK demonstrates superior asset utilization.
Valuation Score
ExcellentAVK trades at attractive valuation levels.
Growth Score
ModerateAVK shows steady but slowing expansion.
Financial Health Score
ModerateAVK shows balanced financial health with some risks.
Profitability Score
ExcellentAVK achieves industry-leading margins.
Key Financial Metrics
Is AVK Expensive or Cheap?
P/E Ratio
AVK trades at 4.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AVK's PEG of -0.14 indicates potential undervaluation.
Price to Book
The market values Advent Convertible and Income Fund at 0.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.66 times EBITDA. This is generally considered low.
How Well Does AVK Make Money?
Net Profit Margin
For every $100 in sales, Advent Convertible and Income Fund keeps $88.41 as profit after all expenses.
Operating Margin
Core operations generate 1.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.98 in profit for every $100 of shareholder equity.
ROA
Advent Convertible and Income Fund generates $13.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Advent Convertible and Income Fund produces operating cash flow of $12.34M, showing steady but balanced cash generation.
Free Cash Flow
Advent Convertible and Income Fund generates strong free cash flow of $12.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.36 in free cash annually.
FCF Yield
AVK converts 3.58% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.14
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How AVK Stacks Against Its Sector Peers
| Metric | AVK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.43 | 18.96 | Better (Cheaper) |
| ROE | 22.98% | 797.00% | Weak |
| Net Margin | 88.41% | -7699.00% (disorted) | Strong |
| Debt/Equity | 0.59 | 2.38 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 560.28 | Weak Liquidity |
| ROA | 13.30% | -23967.00% (disorted) | Strong |
AVK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Advent Convertible and Income Fund's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-10.23%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
76.31%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-132.29%
Industry Style: Value, Dividend, Cyclical
Declining