First Trust High Yield Opportunities 2027 Term Fund Fundamental Analysis (NYSE: FTHY)
First Trust High Yield Opportunities 2027 Term Fund Fundamental Analysis (NYSE: FTHY)
First Trust High Yield Opportunities 2027 Term Fund (NYSE: FTHY) shows moderate financial fundamentals with a PE ratio of 10.94, profit margin of 83.65%, and ROE of 8.15%. The company generates $0.1B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.0/100 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 FTHY's fundamental strength across five key dimensions:
Efficiency Score
WeakFTHY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFTHY trades at attractive valuation levels.
Growth Score
ModerateFTHY shows steady but slowing expansion.
Financial Health Score
ModerateFTHY shows balanced financial health with some risks.
Profitability Score
ModerateFTHY maintains healthy but balanced margins.
Key Financial Metrics
Is FTHY Expensive or Cheap?
P/E Ratio
FTHY trades at 10.94 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FTHY's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values First Trust High Yield Opportunities 2027 Term Fund at 0.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.52 times EBITDA. This is generally considered low.
How Well Does FTHY Make Money?
Net Profit Margin
For every $100 in sales, First Trust High Yield Opportunities 2027 Term Fund keeps $83.65 as profit after all expenses.
Operating Margin
Core operations generate 83.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.15 in profit for every $100 of shareholder equity.
ROA
First Trust High Yield Opportunities 2027 Term Fund generates $6.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Trust High Yield Opportunities 2027 Term Fund generates strong operating cash flow of $30.29M, reflecting robust business health.
Free Cash Flow
First Trust High Yield Opportunities 2027 Term Fund generates strong free cash flow of $30.29M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
FTHY converts 6.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How FTHY Stacks Against Its Sector Peers
| Metric | FTHY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.94 | 21.05 | Better (Cheaper) |
| ROE | 8.15% | 653.00% | Weak |
| Net Margin | 83.65% | -610.00% (disorted) | Strong |
| Debt/Equity | 0.28 | 0.88 | Strong (Low Leverage) |
| Current Ratio | 0.65 | 891.58 | Weak Liquidity |
| ROA | 6.15% | 6602.00% | Weak |
FTHY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews First Trust High Yield Opportunities 2027 Term Fund's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical