NYSE:HIO

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Western Asset High Income Opportunity Fund

Executive Summary

Western Asset High Income Opportunity Fund Inc. More Details


Snowflake Analysis

Share Price & News

How has Western Asset High Income Opportunity Fund's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0.4%

HIO

1.0%

US Capital Markets

-0.7%

US Market


1 Year Return

2.0%

HIO

38.8%

US Capital Markets

36.6%

US Market

Return vs Industry: HIO underperformed the US Capital Markets industry which returned 38.2% over the past year.

Return vs Market: HIO underperformed the US Market which returned 36.5% over the past year.


Shareholder returns

HIOIndustryMarket
7 Day0.4%1.0%-0.7%
30 Day1.8%10.8%4.3%
90 Day-0.4%17.0%8.1%
1 Year10.9%2.0%42.2%38.8%39.6%36.6%
3 Year28.3%2.7%40.1%29.7%53.5%43.7%
5 Year56.2%7.3%152.2%121.0%123.7%98.8%

Long-Term Price Volatility Vs. Market

How volatile is Western Asset High Income Opportunity Fund's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

34.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HIO ($5) is trading above our estimate of fair value ($1.2)

Significantly Below Fair Value: HIO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HIO is poor value based on its PE Ratio (34.9x) compared to the US Capital Markets industry average (23.1x).

PE vs Market: HIO is poor value based on its PE Ratio (34.9x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HIO is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (14.4x).

Future Growth

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

13.7%

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 High Income 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 High Income Opportunity Fund performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIO has a large one-off loss of $23.4M impacting its September 30 2020 financial results.

Growing Profit Margin: HIO's current net profit margins (36.8%) are lower than last year (95.7%).


Past Earnings Growth Analysis

Earnings Trend: HIO has become profitable over the past 5 years, growing earnings by 2% per year.

Accelerating Growth: HIO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HIO had negative earnings growth (-62.6%) over the past year, making it difficult to compare to the Capital Markets industry average (10.4%).


Return on Equity

High ROE: HIO's Return on Equity (2.7%) is considered low.

Financial Health

How is Western Asset High Income Opportunity Fund's financial position?


Financial Position Analysis

Short Term Liabilities: HIO's short term assets ($17.1M) do not cover its short term liabilities ($17.8M).

Long Term Liabilities: HIO has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: HIO is debt free.

Reducing Debt: HIO has not had any debt for past 5 years.

Debt Coverage: HIO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HIO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Dividend

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

7.80%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: HIO's dividend (7.8%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: HIO's dividend (7.8%) is in the top 25% of dividend payers in the US market (3.76%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (267.9%), HIO's dividend payments are not well 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?

14.0yrs

Average board tenure


CEO

Ken Fuller (62 yo)

7.67yrs

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. Mr. Full...


Board Members

NamePositionTenureCompensationOwnership
Kenneth Fuller
Chairman7.67yrsno datano data
William Hutchinson
Lead Independent Director6.75yrsUS$25.41k0%
$ 0
Paolo Cucchi
Independent Director14yrsUS$21.42kno data
Eileen Kamerick
Independent Director8yrsUS$23.88kno data
Carol Colman
Independent Director14.08yrsUS$22.73k0.031%
$ 193.5k
Leslie Gelb
Independent Director14yrsUS$21.58kno data
Daniel Cronin
Independent Director14yrsUS$22.58k0.0023%
$ 14.8k
Robert Agdern
Director6.08yrsUS$20.43kno data
Riordan Roett
Independent Director14yrsUS$21.58kno data

14.0yrs

Average Tenure

74yo

Average Age

Experienced Board: HIO's board of directors are seasoned and experienced ( 14 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: HIO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Western Asset High Income Opportunity Fund Inc.'s company bio, employee growth, exchange listings and data sources


Key Information


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIONYSE (New York Stock Exchange)YesCommon SharesUSUSDNov 1993

Biography

Western Asset High Income Opportunity Fund Inc. is a closed ended fixed-income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. It is co-managed by Western Asset Management Compan...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/02 00:35
End of Day Share Price2021/03/01 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.