Herzfeld Credit Income Fund, Inc. (HERZ): fair value, margin of safety and Wheel Score

Is HERZ undervalued?

At 13.64 (close of 5 Nov 2026), HERZ trades 70% below the GLS average fair value of 46.24. That average comes from 3 models run on the latest filings, and 1 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Herzfeld Credit Income Fund, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The average is built from just 3 models (DCF, 10 Cap, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.

HERZ looks like a fund, note or preferred share rather than an operating company, so the nightly engine files it under Fund / Note: the valuation models are not built for it, and its Wheel Score is capped at 45.

Nine valuation models for HERZ

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Herzfeld Credit Income Fund, Inc. scores only 3 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. There is no GLS Moat score for HERZ: funds, notes and second share lines get none, and so does a company with fewer than two years of accounts on file. The Moat part of the Wheel Score is zero.

Returns on capital are thin or negative - ROIC -0.7%, ROE -0.7%, ROA -0.7% - with debt at 0.00 times equity and a free-cash-flow yield of 14.2%.

The dividend yield is high at 59.08% (payout ratio -1116%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.

Institutional ownership scores 5/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 24: No options

No options are listed on Herzfeld Credit Income Fund, Inc. in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 24, under 70) and is left out of every options scan; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 16k shares a day on a market cap of $28M, with a beta of 0.77 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for HERZ in the nightly calendar. The shares go ex-dividend on 16 Nov 2026 (0.1700 per share), so a covered call sold before then carries a small early-assignment risk around that date.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Asset Management

The 12 companies below are the closest to Herzfeld Credit Income Fund, Inc. by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare HERZ with 7 of them   All Financial Services stocks →