Company Overview
Cohen & Steers Quality Income Realty Fund, Inc. operates as a closed-ended equity mutual fund launched by Cohen & Steers, Inc., which is managed by Cohen & Steers Capital Management, Inc. The fund targets public equity markets within the United States, seeking exposure to companies operating across various sectors to generate income and capital appreciation. This entity functions within the Financial Services sector, specifically the Asset Management industry, where its role is to pool investor capital to manage a portfolio of equities according to its quality income strategy. The company currently holds a market capitalization of $1.57B and reports an annual revenue of $85.56M, with employee data listed as N/A. These valuation metrics indicate that the fund manages a substantial asset base, positioning it as a significant player in the closed-end fund landscape, though the lack of specific employee counts suggests a structure typical for investment vehicles where human capital is often externalized to investment advisors rather than direct employees.
Financial Health
The fund generated revenue of $85.56M over the trailing twelve months, resulting in a net income of $47.27M, while EBITDA data is not reported in the available facts. The significant gap between total revenue and net income reveals a highly efficient cost structure where operating expenses are minimal relative to earnings, a characteristic common in asset management models where revenue is directly tied to assets under management. Free cash flow stands at $34.08M, indicating that the company generates substantial cash after capital expenditures, which provides significant financial flexibility for paying dividends or repurchasing shares. The company maintains a gross margin of 100.0%, reflecting the nature of its business model where revenue is essentially gross profit before operating costs. Operating margins are robust at 72.1%, demonstrating high efficiency in managing overhead, while profit margins reach 55.3%, showing that the majority of revenue converts to bottom-line profit. Regarding liquidity and leverage, the company holds $252,500 in cash against $710.00M in debt, resulting in a debt-to-equity ratio of 43.69 which indicates a leveraged balance sheet reliant on external financing. The current ratio is 0.87, suggesting that the fund has fewer current assets than current liabilities, which implies potential short-term liquidity constraints if obligations were to come due immediately. Return on equity is recorded at 2.8% and return on assets at 1.6%, metrics that reveal the current effectiveness of management in generating returns relative to the capital employed and total assets respectively.
Valuation Assessment
The trailing twelve-month P/E ratio is 33.43, while the forward P/E is N/A, implying that market expectations for future earnings growth are either not priced in or the metric is unavailable for projection. The price-to-book ratio stands at 0.97, indicating that the fund is trading at a slight discount to its book value, which often suggests the market undervalues the underlying assets or anticipates challenges in realizing that book value. Alternative valuation metrics include a price-to-sales ratio of 18.38 and an EV/EBITDA of N/A, suggesting that investors are pricing the entity based on revenue multiples rather than earnings multiples due to the specific nature of its cash flow generation. The stock has reached a 52-week high of $13.39 and a 52-week low of $10.39, with the current price trading below the high and above the low, reflecting volatility within this specific trading range. The beta value is 1.48, meaning the fund exhibits price volatility that is significantly higher than the broader market, moving approximately 48% more aggressively than the market index during periods of fluctuation.
Growth & Income
Revenue growth over the last year is -5.2%, while earnings growth is N/A, indicating that the fund is currently contracting in terms of top-line revenue and that earnings data does not support a comparable growth calculation for the period. The absence of earnings growth data relative to the negative revenue growth implies that the decline in revenue has not yet translated into a measurable drop in reported net income, or that the growth metric is simply unavailable. As a dividend payer, the fund offers a dividend yield of 9.2% with a payout ratio of 274.3%, which indicates that the dividend payments exceed the reported net income, relying on non-cash earnings or debt proceeds to maintain the yield. This payout ratio suggests that the dividend may not be fully sustainable based on current earnings alone, as the company is distributing more than 100% of its net income to shareholders. The overall growth and income profile is characterized by a negative revenue trajectory coupled with a high-yield dividend that exceeds current earnings, presenting a high-risk, high-income investment characteristic typical of leveraged closed-end funds.