Western Asset Managed Municipals Fund (MMU): fair value, margin of safety and Wheel Score

Is MMU undervalued?

MMU has a margin of safety of 59%: the stock closed at 9.36 on 16 Oct 2026 against a GLS average fair value of 22.86. 6 of the 8 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.

There is a wide gap between 10 Cap (3.71) and GLS Growth (58.20). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files MMU under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for MMU

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

Western Asset Managed Municipals Fund scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 2.2/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are moderate - ROIC 5.8%, ROE 8.7%, ROA 5.8% - with debt at 0.49 times equity and a free-cash-flow yield of 2.0%.

The dividend yield is high at 6.99% (payout ratio 75%). 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 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 39: No options

No options are listed on Western Asset Managed Municipals Fund in our nightly snapshot. The Wheel Score is therefore capped at 39 (it reads 39) and the stock is left out of every options screen; the fair value and health figures above are still useful for a plain stock position.

Volume runs at 891k shares a day on a market cap of $511M, with a beta of 0.55 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 13 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for MMU in the nightly calendar. The shares go ex-dividend on 23 Oct 2026 (0.0545 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 Western Asset Managed Municipals Fund 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.

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