WDI

Western Asset Diversified Income Fund

Fundamental data last updated:November 3, 2026

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company profile

SECTOR

Financial Services

industry

Asset Management - Income

Exchange

NYSE

County of HQ

US

Next Earnings Date

Not Scheduled

Business Summary

Western Asset Diversified Income Fund operates as a closed-end management investment company, which engages in seeking high current income and secondary investment objective is to seek capital appreciation. The fund was founded on July 27, 2020, and is headquartered in New York, NY.

 


VALUATION

P/E

N/A

Market Cap ($M USD)

$715.35M

Forward P/E

N/A

PEG

N/A

PRICE TO SALES

7.78

PRICE TO BOOK

0.00

EV / EBITDA

14.87

5-Year Average P/E

Free Cash Flow Yield

12.90%

DCF Value

$23.04

Graham Number

N/A

Price to FCF

7.75

EV to FCF

11.54

Earnings Yield

0.00%

FCF Yield

12.90%

DIVIDEND

Yield

12.93%

Annual Payout

$1.78

Payout Ratio

126.81%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.00

Next Year EPS Growth Estimate

$0.00

Next Year Revenue Growth Estimate

$2.77B

Return on Equity (ROE)

9.29%

FREE CASH FLOW

Operating Margin

77.89%

Debt-to-Equity

0.48

Piotroski F-Score

N/A

Altman Z-Score

N/A

Return on Invested Capital (ROIC)

6.37%

Current Ratio

0.62

Quick Ratio

0.62

Net Debt to EBITDA

4.88

Interest Coverage

3.68

Gross Profit margin

78.85%

FCF PER SHARE

$0.00

REVENUE PER SHARE

$0.00

Gainseekers Quantitative Analysis

Summary

The market seems to be overlooking WDI’s potential, as recent pricing indicated it traded significantly below its DCF value. With a DCF of $23.04, the stock’s valuation suggests a deep discount, hinting at a mispricing opportunity. However, the absence of a Forward P/E and Earnings Yield, combined with a lack of an Altman Z-score, raises questions about its growth prospects and financial safety. The zero Price/Book ratio is unusual, suggesting potential accounting anomalies or asset undervaluation. Overall, the financial health appears mixed, with some red flags that warrant caution.

AI Exposure / Tech Reliance

Operating in the Asset Management sector, WDI is positioned to leverage AI for enhanced data analytics and portfolio management. However, the traditional nature of income-focused asset management may limit rapid tech adoption. The company must strategically integrate AI to remain competitive in a tech-driven financial landscape.

The Bull Case

For the value-driven investor, WDI offers compelling reasons to buy. The robust operating margin of 77.89% and a solid ROIC of 6.37% indicate efficient capital use and strong pricing power. A TTM yield of 12.86% and a favorable FCF Yield of 12.82% suggest attractive income potential. Despite the lack of a Piotroski F-Score, these metrics highlight a company with significant cash-generating capabilities and potential for long-term value creation.

The Bear Case

Despite some strengths, WDI faces notable risks. The Price/Sales ratio of 7.83 is steep, indicating potential overvaluation relative to revenue. The payout ratio of 126.81% is unsustainable, suggesting dividend risks. Additionally, the stock's proximity to its 52-week high, with only a 10.25% distance, hints at possible technical overextension. These factors could deter risk-averse investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

N/A

Average Analyst Price Target

N/A

Institutional Ownership %

1-Year Beta

0.62

Insider Buying % (6 Mo)

Distance to 52-Week High

10.89%

Distance to 52-Week Low

6.31%

EARNINGS SURPRISE %

N/A

50-DAY SMA

$13.59

200-DAY SMA

$14.16

⚠️ 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.