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DMO

Western Asset Mortgage Opportunity FundNYSE:DMO Stock Report

Last Price

US$15.40

Market Cap

US$174.4m

7D

0.2%

1Y

9.7%

Updated

16 Jan, 2022

Data

Company Financials
DMO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance1/6
Financial Health5/6
Dividends3/6

DMO Stock Overview

Western Asset Mortgage Opportunity Fund Inc.

Price History & Performance

Summary of all time highs, changes and price drops for Western Asset Mortgage Opportunity Fund
Historical stock prices
Current Share PriceUS$15.40
52 Week HighUS$16.29
52 Week LowUS$13.87
Beta0.68
1 Month Change-0.52%
3 Month Change-3.51%
1 Year Change9.69%
3 Year Change-26.00%
5 Year Change-31.31%
Change since IPO-23.15%

Recent News & Updates

Nov 17

Western Asset Mortgage Defined Opportunity Fund declares $0.1125 dividend

Western Asset Mortgage Defined Opportunity Fund (DMO) declares $0.1125/share monthly dividend, in line with previous.Forward yield 9.95%Payable Dec. 31; for shareholders of record Dec. 23; ex-div Dec. 22.Payable Feb. 1; for shareholders of record Jan. 22; ex-div Jan. 21.Payable Mar. 1; for shareholders of record Feb. 19; ex-div Feb. 18.See DMO Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

DMOUS Capital MarketsUS Market
7D0.2%-1.6%-0.5%
1Y9.7%30.2%13.7%

Return vs Industry: DMO underperformed the US Capital Markets industry which returned 30.2% over the past year.

Return vs Market: DMO underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is DMO's price volatile compared to industry and market?
DMO volatility
DMO Average Weekly Movement1.2%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: DMO is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: DMO's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009n/aKen Fullerhttps://individualinvestor.myleggmason.com/portal/server.pt?open=512&objID=1434&cached=true&mode=2&userID=355661&mktcd=DMO

Western Asset Mortgage Opportunity Fund Inc. is a closed ended fixed income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. The fund is co-managed Western Asset Management Company and Western Asset Management Company Limited. It invests in the fixed income markets of the United States.

Western Asset Mortgage Opportunity Fund Fundamentals Summary

How do Western Asset Mortgage Opportunity Fund's earnings and revenue compare to its market cap?
DMO fundamental statistics
Market CapUS$174.41m
Earnings (TTM)US$26.42m
Revenue (TTM)US$14.68m

6.6x

P/E Ratio

11.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DMO income statement (TTM)
RevenueUS$14.68m
Cost of RevenueUS$0
Gross ProfitUS$14.68m
Expenses-US$11.73m
EarningsUS$26.42m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.33
Gross Margin100.00%
Net Profit Margin179.90%
Debt/Equity Ratio39.1%

How did DMO perform over the long term?

See historical performance and comparison

Dividends

8.8%

Current Dividend Yield

58%

Payout Ratio

Does DMO pay a reliable dividends?

See DMO dividend history and benchmarks
When do you need to buy DMO by to receive an upcoming dividend?
Western Asset Mortgage Opportunity Fund dividend dates
Ex Dividend DateJan 21 2022
Dividend Pay DateFeb 01 2022
Days until Ex dividend3 days
Days until Dividend pay date14 days

Does DMO pay a reliable dividends?

See DMO dividend history and benchmarks

Valuation

Is Western Asset Mortgage Opportunity Fund undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DMO ($15.4) is trading below our estimate of fair value ($36.44)

Significantly Below Fair Value: DMO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DMO is good value based on its PE Ratio (6.6x) compared to the US Capital Markets industry average (15.9x).

PE vs Market: DMO is good value based on its PE Ratio (6.6x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DMO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DMO is good value based on its PB Ratio (1x) compared to the US Capital Markets industry average (42.4x).

Future Growth

How is Western Asset Mortgage Opportunity Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.7%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Western Asset Mortgage Opportunity Fund has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Western Asset Mortgage Opportunity Fund performed over the past 5 years?

-25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DMO has a large one-off gain of $15.5M impacting its June 30 2021 financial results.

Growing Profit Margin: DMO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: DMO's earnings have declined by 25.4% per year over the past 5 years.

Accelerating Growth: DMO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: DMO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (86.4%).


Return on Equity

High ROE: DMO's Return on Equity (15.8%) is considered low.

Financial Health

How is Western Asset Mortgage Opportunity Fund's financial position?


Financial Position Analysis

Short Term Liabilities: DMO's short term assets ($6.8M) do not cover its short term liabilities ($79.1M).

Long Term Liabilities: DMO has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: DMO's net debt to equity ratio (36%) is considered satisfactory.

Reducing Debt: DMO's debt to equity ratio has reduced from 51.6% to 39.1% over the past 5 years.

Debt Coverage: DMO's debt is well covered by operating cash flow (20.5%).

Interest Coverage: DMO's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet

Dividend

What is Western Asset Mortgage Opportunity Fund current dividend yield, its reliability and sustainability?

8.77%

Current Dividend Yield


Upcoming Dividend Payment

TodayJan 17 2022Ex Dividend DateJan 21 2022Dividend Pay DateFeb 01 202211 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: DMO's dividend (8.77%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: DMO's dividend (8.77%) is in the top 25% of dividend payers in the US market (3.44%)


Stability and Growth of Payments

Stable Dividend: DMO's dividend payments have been volatile in the past 10 years.

Growing Dividend: DMO's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58%), DMO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

How experienced are the management team and are they aligned to shareholders interests?

12.0yrs

Average board tenure


CEO

Ken Fuller (63 yo)

8.58yrs

Tenure

Mr. Kenneth Donald Fuller, also known as Ken, has been Chief Executive Officer and President of Western Asset High Income Opportunity Fund Inc. and LMP Corporate Loan Fund Inc. since June 1, 2013. He serve...


Board Members

Experienced Board: DMO's board of directors are seasoned and experienced ( 12 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

Western Asset Mortgage Opportunity Fund Inc.'s employee growth, exchange listings and data sources


Key Information


Location

  • Western Asset Mortgage Opportunity Fund Inc.
  • 620 Eighth Avenue
  • 49th Floor
  • New York
  • New York
  • 10018
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:08
End of Day Share Price2022/01/14 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.