Snowflake Score | |
---|---|
Valuation | 1/6 |
Future Growth | 0/6 |
Past Performance | 2/6 |
Financial Health | 2/6 |
Dividends | 2/6 |
PTY Stock Overview
PIMCO Corporate & Income Opportunity Fund is a closed-ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC.
PIMCO & Income Opportunity Fund Competitors
Price History & Performance
Historical stock prices | |
---|---|
Current Share Price | US$14.07 |
52 Week High | US$21.66 |
52 Week Low | US$13.34 |
Beta | 0.74 |
1 Month Change | -4.68% |
3 Month Change | -2.83% |
1 Year Change | -28.51% |
3 Year Change | -22.69% |
5 Year Change | -14.00% |
Change since IPO | -6.26% |
Recent News & Updates
PTY: Weathering The Storm With A Durable, Double-Digit Dividend Yield
PTY is a flagship closed-end fund managed by PIMCO that has performed well since inception in 2002. The fund is plunging deeper and deeper into the red as risks remain at the forefront of the conversation. The fund has reached an unusual double-digit dividend yield which remains well covered.
PTY: I Like The High Yield Exposure, But The Premium Remains A Real Concern
PTY has continued to struggle since my last review, although its very short-term price momentum has been positive. I like high yield credit in general, for one that wants fixed-income exposure. Interest rate risk remains the main threat to credit and bonds, and high yield has less relative exposure. Credit spreads suggest there is some value here, within the U.S. and emerging markets. This could help generate interest in funds like PTY. Despite these positives, the premium price remains a sore point. It is difficult to find merit to buying a CEF at a 14% + premium, and that is the case as of now.
PTY: A New Day For A Battered Closed End Fund
PTY is a flagship PIMCO closed end fund having performed well since inception in 2002. The fund is trading with an unusual negative TTM return as shareholders continue to flee the fund since a distribution cut in September. The recent performance has changed the fund’s opportunity set, leading us to reassess. Today, the valuation and yield are better than before the cut.
PTY: A Victim Of Its Own Past Success
PTY has seen a double-digit drop over the past three months. The decline was predictable, but the speed at which it occurred has taken some by surprise. With this drop, PTY is now trading at a much more reasonable valuation, limiting the downside risk going forward. However, it is still above my premium to NAV threshold. High yield credit has performed well in 2021, and there are signs that could continue in 2022 as the economic recovery continues. This bodes well for PTY's underlying holdings. With a recent income cut, the fund is now covering its distribution, which is a positive sign.
PTY: 30% NAV Premium And Rising Corporate Yields Create Significant Downside Risk
Record low-interest rates are pushing many investors into riskier leveraged high-yield credit funds like PTY. PIMCO's PTY has become riskier over the past two years, with a higher beta and volatility than most equity funds. PTY's net asset value declined recently as junk bond yields switched toward a rising trend. The end to monetary stimulus, falling consumer confidence, and rising inflation will likely push junk bond yields materially higher. At a massive 30% NAV premium, combined with other negative factors, PTY is at high immediate risk of a significant decline in value.
PTY: A Best-In-Class CEF With A Luxury Valuation
PTY is a closed end fund managed by PIMCO that utilizes a diversified portfolio to drive current income and total return. The fund is one of PIMCO’s flagship CEFs, outperforming its peers and even the S&P 500. A recent distribution cut combined with an extreme premium to NAV creates an interesting outlook for the fund.
Shareholder Returns
PTY | US Capital Markets | US Market | |
---|---|---|---|
7D | 0.2% | 3.3% | 1.0% |
1Y | -28.5% | -13.5% | -15.1% |
Return vs Industry: PTY underperformed the US Capital Markets industry which returned -14% over the past year.
Return vs Market: PTY underperformed the US Market which returned -13.2% over the past year.
Price Volatility
PTY volatility | |
---|---|
PTY Average Weekly Movement | 3.7% |
Capital Markets Industry Average Movement | 0.4% |
Market Average Movement | 7.8% |
10% most volatile stocks in US Market | 16.8% |
10% least volatile stocks in US Market | 2.9% |
Stable Share Price: PTY is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PTY's weekly volatility (4%) has been stable over the past year.
About the Company
Founded | Employees | CEO | Website |
---|---|---|---|
2002 | n/a | n/a | https://www.allianzinvestors.com/Products/pages/11.aspx |
PIMCO Corporate & Income Opportunity Fund is a closed-ended fixed income mutual fund launched and managed by Allianz Global Investors Fund Management LLC. It is co-managed by Pacific Investment Management Company LLC. The fund invests in fixed income markets across the globe.
PIMCO & Income Opportunity Fund Fundamentals Summary
PTY fundamental statistics | |
---|---|
Market Cap | US$1.56b |
Earnings (TTM) | US$99.51m |
Revenue (TTM) | US$164.19m |
15.6x
P/E Ratio9.5x
P/S RatioIs PTY overvalued?
See Fair Value and valuation analysisEarnings & Revenue
PTY income statement (TTM) | |
---|---|
Revenue | US$164.19m |
Cost of Revenue | US$0 |
Gross Profit | US$164.19m |
Other Expenses | US$64.68m |
Earnings | US$99.51m |
Last Reported Earnings
Jan 31, 2022
Next Earnings Date
n/a
Earnings per share (EPS) | 0.90 |
Gross Margin | 100.00% |
Net Profit Margin | 60.61% |
Debt/Equity Ratio | 47.8% |
How did PTY perform over the long term?
See historical performance and comparisonDividends
10.1%
Current Dividend Yield172%
Payout RatioValuation
Is PIMCO & Income Opportunity Fund undervalued compared to its fair value and its price relative to the market?
Valuation Score
1/6Valuation Score 1/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
15.64x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PTY ($14.07) is trading above our estimate of fair value ($11.82)
Significantly Below Fair Value: PTY is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PTY is good value based on its Price-To-Earnings Ratio (15.6x) compared to the US Capital Markets industry average (29.6x).
PE vs Market: PTY is poor value based on its Price-To-Earnings Ratio (15.6x) compared to the US market (14.9x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate PTY's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: PTY is overvalued based on its Price-To-Book Ratio (1x) compared to the US Capital Markets industry average (-18.8x).
Future Growth
How is PIMCO & Income Opportunity Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
9.8%
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 PIMCO & 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 PIMCO & Income Opportunity Fund performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-10.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PTY has a large one-off loss of $70.3M impacting its January 31 2022 financial results.
Growing Profit Margin: PTY's current net profit margins (60.6%) are higher than last year (42.8%).
Past Earnings Growth Analysis
Earnings Trend: PTY's earnings have declined by 10.2% per year over the past 5 years.
Accelerating Growth: PTY's earnings growth over the past year (57.5%) exceeds its 5-year average (-10.2% per year).
Earnings vs Industry: PTY earnings growth over the past year (57.5%) underperformed the Capital Markets industry 96.7%.
Return on Equity
High ROE: PTY's Return on Equity (5.4%) is considered low.
Financial Health
How is PIMCO & Income Opportunity Fund's financial position?
Financial Health Score
2/6Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: PTY's short term assets ($277.9M) do not cover its short term liabilities ($1.1B).
Long Term Liabilities: PTY's short term assets ($277.9M) exceed its long term liabilities ($37.1M).
Debt to Equity History and Analysis
Debt Level: PTY's net debt to equity ratio (47.5%) is considered high.
Reducing Debt: PTY's debt to equity ratio has increased from 12.5% to 47.8% over the past 5 years.
Debt Coverage: PTY's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: PTY's interest payments on its debt are well covered by EBIT (8.5x coverage).
Balance Sheet
Dividend
What is PIMCO & Income Opportunity Fund current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
10.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PTY's dividend (10.13%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: PTY's dividend (10.13%) is in the top 25% of dividend payers in the US market (4.06%)
Stability and Growth of Payments
Stable Dividend: PTY's dividend payments have been volatile in the past 10 years.
Growing Dividend: PTY's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (172.5%), PTY's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: PTY is paying a dividend but the company has no free cash flows.
Management
How experienced are the management team and are they aligned to shareholders interests?
12.4yrs
Average board tenure
CEO
PIMCO & Income Opportunity Fund has no CEO, or we have no data on them.
Board Members
Experienced Board: PTY's board of directors are seasoned and experienced ( 12.4 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
PIMCO Corporate & Income Opportunity Fund's employee growth, exchange listings and data sources
Key Information
- Name: PIMCO Corporate & Income Opportunity Fund
- Ticker: PTY
- Exchange: NYSE
- Founded: 2002
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Implied Market Cap: US$1.556b
- Shares outstanding: 110.62m
- Website: https://www.allianzinvestors.com/Products/pages/11.aspx
Location
- PIMCO Corporate & Income Opportunity Fund
- 650 Newport Center Drive
- Newport Beach
- California
- 92660
- United States
Listings
Company Analysis and Financial Data Status
Data | Last Updated (UTC time) |
---|---|
Company Analysis | 2022/05/25 00:00 |
End of Day Share Price | 2022/05/25 00:00 |
Earnings | 2022/01/31 |
Annual Earnings | 2021/07/31 |
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.