Virtus Convertible & Income Fund II (NCZ): fair value, margin of safety and Wheel Score

Is NCZ undervalued?

NCZ has a margin of safety of 87%: the stock closed at 13.91 on 5 Nov 2026 against a GLS average fair value of 108.63. 6 of the 7 valuation models that produced a number sit above the price. Our scans 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 DCF (7.45) and GLS Growth (271.11). 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.

NCZ 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 NCZ

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

Virtus Convertible & Income Fund II scores only 4 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 NCZ: 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 high - ROIC 15.5%, ROE 16.5%, ROA 14.4% - with debt at 0.06 times equity and negative free cash flow.

The dividend yield is high at 10.35% (payout ratio 33%). 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.

Wheel Score 25: No options

No options are listed on Virtus Convertible & Income Fund II in our nightly snapshot, so it fails the first Wheel Trade Filter (options that actually trade) (it reads 25, 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 26k shares a day on a market cap of $265M, with a beta of 1.24 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; 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 NCZ in the nightly calendar. The shares go ex-dividend on 12 Nov 2026 (0.1200 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 Virtus Convertible & Income Fund II 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.

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