BNY Mellon Strategic Municipals, Inc. (LEO) | Investment Case

1. Company Snapshot

1.a. Company Description

BNY Mellon Strategic Municipals, Inc.is a closed ended fixed income mutual fund launched and managed by BNY Mellon Investment Adviser, Inc.It invests in the fixed income markets of the United States.

The fund primarily invests in investment grade municipal bonds, the income from which is exempt from federal income tax.It employs fundamental analysis to create its portfolio.The fund was formerly known as Dreyfus Strategic Municipals, Inc.

BNY Mellon Strategic Municipals, Inc.was formed on September 23, 1987 and is domiciled in the United States.

Show Full description

1.b. Last Insights on LEO

Recent developments in the satellite communication technology sector have negatively impacted BNY Mellon Strategic Municipals, Inc. The company's exposure to this industry through its investments may be affected by the increasing competition and advancements in technology. The partnership between AERKOMM and Eutelsat's OneWeb LEO services, as well as the launch of 20 new OneWeb satellites, may have increased competition for BNY Mellon's investments in the sector. Additionally, the successful flight test of Hughes' Electronically Steerable Antenna (ESA) using LEO technology may have further accelerated the adoption of this technology, potentially reducing the value of BNY Mellon's investments.

1.c. Company Highlights

Last Price	6.31
Change Percentage	0.16%
Open	6.32
Previous Close	6.3
Market Cap ( Millions)	393
Volume	306631
Year High	6.41
Year Low	5.55
M A 50	6.27
M A 200	6.03

FCF Yield	-2.72%
Dividend Yield	3.99%
ROE	0.52%
Debt / Equity	54.24%
Net Debt / EBIDTA	-1383.14%
Price To Book	0.93
Price Earnings Ratio	171.46
Price To FCF	-36.8
Price To sales	13.76
EV / EBITDA	-37.82

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Income-Covered Closed-End Fund Report, October 2025

Oct -21

Source: seekingalpha.com

Omdia: Sovereign verticals set to spend $15 billion on low-earth orbit economy connectivity by 2030

Oct -08

Source: businesswire.com

Income-Covered Closed-End Fund Report, September 2025

Sep -22

Source: seekingalpha.com

Eutelsat signs strategic partnership with UK government for its LEO network access

Jul -21

Source: reuters.com

Eutelsat to Deliver LEO Connectivity for UK Government Operations Worldwide

Jul -21

Source: businesswire.com

Gilat Expands ESA Portfolio With Successful ESR-2030Ku LEO Test Flight

May -14

Source: zacks.com

Arabsat selects Telesat Lightspeed Low Earth Orbit (LEO) services for its multi-orbit connectivity portfolio

May -14

Source: globenewswire.com

Gilat Expands and Adds to its ESA Antenna Portfolio with a Successful Test Flight of ESR-2030Ku on Eutelsat OneWeb Low Earth Orbit (LEO) Network

May -12

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Investment and Related Activities

Expected Growth: 4.5%

Growing demand for municipal bond investment management and portfolio management services, driven by increasing institutional investment in municipal bonds, rising demand for yield-enhancing strategies, and BNY Mellon's strong brand reputation and expertise in the field.

7. Detailed Products

Municipal Bond Investment Management

BNY Mellon Strategic Municipals, Inc. offers investment management services for municipal bonds, providing clients with diversified portfolios and risk management strategies.

High-Yield Municipal Bond Strategies

The company provides high-yield municipal bond strategies that aim to maximize returns while managing credit risk, offering investors a higher return potential.

Municipal Bond Index Funds

BNY Mellon Strategic Municipals, Inc. offers municipal bond index funds that track a specific market index, providing broad diversification and low costs.

Customized Municipal Bond Portfolios

The company offers customized municipal bond portfolios tailored to individual investors' or institutions' specific needs and goals.

Municipal Bond Research and Analytics

BNY Mellon Strategic Municipals, Inc. provides in-depth research and analytics on the municipal bond market, helping investors make informed investment decisions.

8. BNY Mellon Strategic Municipals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for BNY Mellon Strategic Municipals, Inc. is medium because while there are some alternatives to municipal bonds, they are not perfect substitutes and the company's strong brand and reputation help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers for BNY Mellon Strategic Municipals, Inc. is low because individual investors and institutional clients have limited negotiating power due to the company's large market share and diversified client base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for BNY Mellon Strategic Municipals, Inc. is low because the company has a diversified supplier base and is not heavily dependent on any single supplier.

Threat Of New Entrants

The threat of new entrants for BNY Mellon Strategic Municipals, Inc. is low because of the high barriers to entry in the municipal bond market, including regulatory hurdles and the need for significant capital investment.

Intensity Of Rivalry

The intensity of rivalry for BNY Mellon Strategic Municipals, Inc. is high because of the competitive nature of the municipal bond market, with many established players competing for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	26.50%
Debt Cost	4.46%
Equity Weight	73.50%
Equity Cost	6.62%
WACC	6.05%
Leverage	36.06%

11. Quality Control: BNY Mellon Strategic Municipals, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Monroe Capital

A-Score: 6.8/10

Value: 6.1

Growth: 5.7

Quality: 7.1

Yield: 10.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

SuRo Capital

A-Score: 6.3/10

Value: 7.5

Growth: 1.0

Quality: 9.3

Yield: 7.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

OFS Credit

A-Score: 6.2/10

Value: 4.8

Growth: 5.8

Quality: 7.2

Yield: 10.0

Momentum: 1.5

Volatility: 7.7

1-Year Total Return ->

BNY Mellon Strategic Municipals

A-Score: 6.1/10

Value: 5.4

Growth: 4.1

Quality: 5.5

Yield: 7.0

Momentum: 4.5

Volatility: 10.0

1-Year Total Return ->

Logan Ridge Finance

A-Score: 5.3/10

Value: 6.5

Growth: 5.8

Quality: 2.4

Yield: 6.0

Momentum: 1.5

Volatility: 9.7

1-Year Total Return ->

BrightSphere

A-Score: 4.6/10

Value: 2.7

Growth: 6.3

Quality: 7.1

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

40.56%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.05%

BNY Mellon Strategic Municipals, Inc. - US05588W1080

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on LEO

1.c. Company Highlights

Expensive

Less Volatile

Stable Momentum

Average Growth

Lower Growth

Fairly Valued

Weak Momentum

Better Quality

Average Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Investment and Related Activities

Expected Growth: 4.5%

7. Detailed Products

Municipal Bond Investment Management

High-Yield Municipal Bond Strategies

Municipal Bond Index Funds

Customized Municipal Bond Portfolios

Municipal Bond Research and Analytics

8. BNY Mellon Strategic Municipals, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: BNY Mellon Strategic Municipals, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.31$

Current Price

6.31$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA