NYSE:HIX

Stock Analysis Report

Western Asset High Income Fund II

Executive Summary

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

Rewards


Snowflake Analysis

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HIX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

HIX

-4.2%

US Capital Markets

-4.2%

US Market


1 Year Return

7.3%

HIX

12.0%

US Capital Markets

14.0%

US Market

Return vs Industry: HIX underperformed the US Capital Markets industry which returned 12% over the past year.

Return vs Market: HIX underperformed the US Market which returned 14% over the past year.


Shareholder returns

HIXIndustryMarket
7 Day-3.0%-4.2%-4.2%
30 Day-0.1%-2.1%-1.8%
90 Day4.5%1.1%2.6%
1 Year16.6%7.3%14.3%12.0%16.3%14.0%
3 Year20.4%-6.5%35.2%27.6%43.2%34.0%
5 Year34.2%-16.6%74.5%58.3%65.9%47.6%

Price Volatility Vs. Market

How volatile is Western Asset High Income Fund II'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 Fund II undervalued compared to its fair value and its price relative to the market?

7.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HIX ($6.9) is trading below our estimate of fair value ($7.47)

Significantly Below Fair Value: HIX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HIX is good value based on its PE Ratio (9x) compared to the Capital Markets industry average (33.4x).

PE vs Market: HIX is good value based on its PE Ratio (9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HIX is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (6.6x).

Future Growth

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

8.7%

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 Fund II 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 Fund II performed over the past 5 years?

25.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HIX has a large one-off gain of $18.6M impacting its October 31 2019 financial results.

Growing Profit Margin: HIX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: HIX's earnings have grown significantly by 25.2% per year over the past 5 years.

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

Earnings vs Industry: HIX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (8.4%).


Return on Equity

High ROE: HIX's Return on Equity (10.5%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Western Asset High Income Fund II's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HIX has a low level of unsold assets or inventory.

Debt Coverage by Assets: HIX's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: HIX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HIX has a sufficient allowance for bad loans.

Low Risk Liabilities: HIX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HIX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HIX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HIX has an appropriate level of bad loans.

Dividend

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

8.43%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Western Asset High Income Fund II before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company8.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: HIX's dividend (8.43%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: HIX's dividend (8.43%) is in the top 25% of dividend payers in the US market (3.77%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), HIX'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?

18.1yrs

Average board tenure


CEO

Western Asset High Income Fund II has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
William Hutchinson
Lead Independent Director5.8yrsUS$16.48k0.015% $90.0k
Paolo Cucchi
Non-Interested Director12.9yrsUS$13.98kno data
Eileen Kamerick
Non-Interested Director7yrsUS$13.98kno data
Carol Colman
Non-Interested Director18.1yrsUS$15.30kno data
Leslie Gelb
Non-Interested Director19.1yrsUS$13.98kno data
Daniel Cronin
Non-Interested Director18.1yrsUS$15.30kno data
Riordan Roett
Non-Interested Director22.1yrsUS$13.98kno data

18.1yrs

Average Tenure

77yo

Average Age

Experienced Board: HIX's board of directors are seasoned and experienced ( 18.1 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.


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 Fund II Inc.'s company bio, employee growth, exchange listings and data sources


Key Information


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HIXNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 1998

Biography

Western Asset High Income Fund II Inc. is a closed-ended fixed income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. The fund is co-managed by Western Asset Management Company, Western Asset Management Company Limited, and Western Asset Management Company Pte. Ltd. It invests in the fixed income markets across the globe. The fund invests in securities of companies that operate across diversified sectors. It invests in high yield debt securities issued by U.S., foreign corporations and foreign governments. The fund employs a combination of quantitative and fundamental analysis with bottom-up security selection process to create its portfolio. It benchmarks the performance of its portfolio against Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index and the JPMorgan Emerging Markets Bond Index Global. Western Asset High Income Fund II, Inc. was formed on May 28, 1998 and is domiciled in the United States. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:42
End of Day Share Price2020/02/24 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


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.