Stock fact sheet · data as of
BNY Mellon Strategic Municipals, Inc. (LEO): fair value, margin of safety and Wheel Score
Ticker symbol LEO · Financial Services · Asset Management - Income · United States · Value Income
Is LEO undervalued?
BNY Mellon Strategic Municipals, Inc. (LEO) closed at 6.02 on 5 Nov 2026, 34% above the GLS average fair value of 4.48. 7 of the 8 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 8 models disagree widely: GLS Growth gives 0.5948 while Graham Growth gives 11.02. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, LEO is clearly cheaper than it is fast-growing, so the nightly engine files it under Value (value score 41, growth score 18, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for LEO
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.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 5.55 | -8% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 11.02 | +83% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 4.77 | -21% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 0.5948 | -90% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 3.52 | -42% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 3.37 | -44% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 4.75 | -21% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 2.26 | -62% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -3.44 | -157% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - LEO passes 6 of the nine Piotroski tests, which passes the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 2.9 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.
Returns on capital are thin or negative - ROIC -2.3%, ROE -3.1%, ROA -2.0% - with debt at 0.33 times equity and a free-cash-flow yield of 2.9%.
The dividend yield is high at 5.37% (payout ratio 135%) - a payout above 100% of earnings, which is not covered by profits. 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 6/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 26 Oct 2026.
| Piotroski F-score | 6 / 9 | ROIC | -2.3% |
|---|---|---|---|
| GLS Moat | 2.9 / 10 | ROE | -3.1% |
| Debt / equity | 0.33 | ROA | -2.0% |
| Free-cash-flow yield | 2.9% | Payout ratio | 135% |
| Institutions | 6 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 17: No options
LEO has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business. It fails the first Wheel Trade Filter (options that actually trade), so the score stays under 70 and is shown as "No options" (17 here). The valuation and quality numbers still apply to owning the shares outright.
Volume runs at 188k shares a day on a market cap of $375M, with a beta of 0.63 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | no listed options |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 34% above our fair value |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | no implied volatility |
| 8 | Big enough | Fails | market cap $375M (under $1.0B) |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 34% above fair value | |
| Premium | Weak | no option data | |
| Moat | Weak | moat 2.9/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Fair | not scored yet - half marks | |
| Option trading | Weak | no option volume data | |
| Stability | Fair | beta 0.63, $375M company |
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 LEO in the nightly calendar. The shares go ex-dividend on 13 Nov 2026 (0.0300 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 - Income
The 12 companies below are the closest to BNY Mellon Strategic Municipals, Inc. by market cap within the Asset Management - Income industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| VKI Invesco Advantage Municipal Income Trust II | 8.48 | 7.28 | -17% | 14No options | $377M |
| DRAY YieldMax DKNG Option Income Strategy ETF | 12.85 | 38.20 | +66% | 25No options | $369M |
| FSAHX Fidelity Short Duration High Income Fund | 8.74 | 9.58 | +9% | 18No options | $366M |
| HPS John Hancock Preferred Income Fund III | 11.98 | 20.04 | +40% | 28No options | $385M |
| EAD Wells Fargo Advantage Funds - Allspring Income Opportunities Fund | 6.11 | 20.48 | +70% | 29No options | $361M |
| HPI John Hancock Preferred Income Fund | 13.46 | 24.61 | +45% | 26No options | $361M |
| DFP Flaherty & Crumrine Dynamic Preferred and Income Fund Inc. | 19.22 | 43.16 | +55% | 26No options | $395M |
| EVN Eaton Vance Municipal Income Trust | 10.09 | 16.49 | +39% | 25No options | $403M |
| HFRO Highland Opportunities and Income Fund | 6.30 | 18.70 | +66% | 26No options | $348M |
| SCD LMP Capital and Income Fund Inc. | 15.11 | 40.99 | +63% | 26No options | $346M |
| PSCIX American Beacon SSI Alternative Income Fund Y Class | 9.99 | 13.57 | +26% | 25No options | $409M |
| NOIEX Northern Funds Income Equity Fund | 20.96 | 112.51 | +81% | 23No options | $339M |
⚖ Compare LEO with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about LEO
Is LEO undervalued right now?
No: at 6.02 the stock trades 34% above the GLS average fair value of 4.48 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of LEO and what does it mean?
LEO has no listed options in our nightly snapshot, so it cannot be wheeled; it fails the first Wheel Trade Filter (options that actually trade), stays under 70 and is shown as "No options".
What is the GLS fair value for LEO?
4.48 per share as of 5 Nov 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does BNY Mellon Strategic Municipals, Inc. report earnings next?
No upcoming earnings date is recorded for LEO in our calendar as of 5 Nov 2026; the Calendars page is refreshed every morning.
Does LEO have listed options, and how liquid are they?
No. The nightly options snapshot found no listed contracts on LEO, so the wheel strategy cannot be run on it and the Wheel Score stays under 70.