Manages a closed-ended balanced mutual fund called Virtus Convertible & Income 2024 Target Term Fund (CBH). Now — the numbers.
This is an established company with proven profits.
An average decline of 15% a year over the last 4 years — the most striking risk in this picture. Red columns mark years that ended in a loss.
The market pays 25.6× for every dollar of annual profit — around what a business like this usually costs.
No analyst target is on record for this company.
The stock trades 16% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 95% — still a thick cushion, though costs have been eating into it lately.
It pays out $0.48 per share each year — regular cash for whoever holds the stock.
Over the last 4 years, sales fell about 15% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
Since the drop from its peak, buyer appetite hasn’t come back.
We grade companies — revenue, margins, balance sheets. This is a fund, so there is no report card to give. That is not a low grade; it is a different kind of thing.
One-line summary: a basket, not a business. Judge it by what it holds.