Calamos Convertible and High Income Fund (CHY) Fundamental Analysis: Bull vs. Bear Case

CHY

Calamos Convertible and High Income Fund

Fundamental data last updated:October 2, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Financial Services

industry

Asset Management - Income

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Not Scheduled

Business Summary

Calamos Convertible and High Income Fund is a closed ended fixed income mutual fund launched by Calamos Investments LLC. It is managed by Calamos Advisors LLC. The fund invests in the fixed income markets of the United States. It primarily invests in a diversified portfolio of convertible securities and high yield corporate bonds rated Ba or lower by Moody's or BB or lower by Standard & Poor's. The fund employs both fundamental and quantitative analysis to create its portfolio. Calamos Convertible and High Income Fund was formed on March 12, 2003 and is domiciled in the United States.

VALUATION

P/E

5.61 Market Cap ($M USD)

$1.06B

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

7.53 PRICE TO BOOK

1.11 EV / EBITDA

7.16 5-Year Average P/E

Free Cash Flow Yield

1.10%

DCF Value

$0.45

Graham Number

$24.99

Price to FCF

90.61 EV to FCF

128.03 Earnings Yield

17.81%

FCF Yield

1.10%

DIVIDEND

Yield

9.13%

Annual Payout

$1.20

Payout Ratio

47.29%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.34

Next Year EPS Growth Estimate

N/A

Next Year Revenue Growth Estimate

N/A

Return on Equity (ROE)

21.60%

FREE CASH FLOW

Operating Margin

148.71%

Debt-to-Equity

0.50 Piotroski F-Score

4 Altman Z-Score

2.45 Return on Invested Capital (ROIC)

14.72%

Current Ratio

0.00 Quick Ratio

0.00 Net Debt to EBITDA

2.09 Interest Coverage

19.20 Gross Profit margin

82.24%

FCF PER SHARE

$0.15

REVENUE PER SHARE

$1.76

Gainseekers Quantitative Analysis

Summary

The market appears to be mispricing CHY Calamos Convertible and High Income Fund relative to its intrinsic value. With a DCF value significantly below the snapshot price, the stock seems overvalued. The Graham Number suggests a more conservative valuation, yet the current price exceeds this benchmark. Despite a robust Earnings Yield of 18.23%, indicating potential undervaluation, the Altman Z-score of 2.39 suggests moderate financial distress risk. The absence of a Forward P/E further complicates growth projections, making this a risky bet for growth-focused investors.

AI Exposure / Tech Reliance

As an asset management entity, CHY is moderately insulated from rapid tech shifts. Its focus on income generation through convertible securities positions it to leverage AI for enhanced data analytics and risk management. However, its core operations remain largely unaffected by direct tech disruptions.

The Bull Case

For value or GARP investors, CHY offers compelling reasons to buy. A strong ROIC of 14.72% highlights efficient capital deployment, while a Piotroski F-Score of 4 signals moderate financial health. The impressive operating margin of 148.71% underscores significant pricing power, and a TTM yield of 9.35% provides attractive income. Despite a low FCF Yield, the fund's ability to generate consistent returns makes it a viable option for income-focused portfolios.

The Bear Case

However, structural risks loom large. The Price to FCF ratio of 87.41 is alarmingly high, indicating poor cash flow relative to its valuation. Trading near its 52-week high, the stock appears technically overextended, suggesting limited upside potential. The Price/Sales ratio of 7.27 further highlights overvaluation concerns. With a low Altman Z-score, financial stability remains a pressing issue, casting doubt on its long-term resilience.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

1.15 Insider Buying % (6 Mo)

Distance to 52-Week High

0.68%

Distance to 52-Week Low

21.61%

EARNINGS SURPRISE %

N/A

50-DAY SMA

$12.11

200-DAY SMA

$11.63

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.