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DMO's ROE % is ranked better than 63.07% of 1611
companies
in the Asset Management industry
Industry Median: 6.64
vs DMO: 10.11
Western Asset Mortgage Defined Opportunity Fund (NYSE:DMO) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Western Asset Mortgage Defined Opportunity Fund ROE % Related Terms
Western Asset Mortgage Defined Opportunity Fund ROE % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Western Asset Mortgage Defined Opportunity Fund ROE % Chart
Western Asset Mortgage Defined Opportunity Fund Annual Data
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Western Asset Mortgage Defined Opportunity Fund ROE % vs Asset Management Industry
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Western Asset Mortgage Defined Opportunity Fund (DMO) has a ROE % of 8.89% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Western Asset Mortgage Defined Opportunity Fund and its competitors. This is 12% below median its historical median of 10.13. According to the industry distribution chart, Western Asset Mortgage Defined Opportunity Fund ranks #595 out of 1611 companies in the Asset Management industry, placing it in the top 36.9%.
Is Western Asset Mortgage Defined Opportunity Fund's ROE % too high?
Western Asset Mortgage Defined Opportunity Fund's current ROE % of 8.89% is 12% below median its 10-year median of 10.13. The Asset Management industry median ROE % is 6.64. Western Asset Mortgage Defined Opportunity Fund's value of 8.89% is 33.9% above this industry median. Based on the distribution chart, Western Asset Mortgage Defined Opportunity Fund ranks #595 out of 1611 companies in the Asset Management industry, which is above the industry midpoint. Overall, Western Asset Mortgage Defined Opportunity Fund has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Western Asset Mortgage Defined Opportunity Fund's ROE % compare to GGZ and PFO?
According to the Asset Management industry distribution chart, Western Asset Mortgage Defined Opportunity Fund ranks #595 out of 1611 companies for ROE %. This puts Western Asset Mortgage Defined Opportunity Fund in the upper half of its industry. The industry median ROE % is 6.64. Western Asset Mortgage Defined Opportunity Fund's value of 8.89% is 33.9% above this benchmark. While the company's 10-year median is 10.13 vs. the industry median of 6.64, Western Asset Mortgage Defined Opportunity Fund has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.64, based on 1,611 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Western Asset Mortgage Defined Opportunity Fund's current ROE % of 8.89% is 33.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Western Asset Mortgage Defined Opportunity Fund and its competitors. For the Asset Management industry, the median ROE % is 6.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Asset Mortgage Defined Opportunity Fund's current ROE % is 8.89%, which is 12% below median its own 10-year median of 10.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Asset Mortgage Defined Opportunity Fund stock overvalued right now?
Based on GuruFocus' analysis, Western Asset Mortgage Defined Opportunity Fund (DMO) is currently considered Fairly Valued. The stock's GF Value™ is $10.53, compared to a current price of $10.45 — trading 0.8% below its estimated fair value. The current ROE % is 8.89%, which is 12% below median its 10-year median of 10.13 and 33.9% above the Asset Management industry median of 6.64. Western Asset Mortgage Defined Opportunity Fund's overall GF Score™ is 54/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Western Asset Mortgage Defined Opportunity Fund (DMO), the current ROE % is 8.89% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Western Asset Mortgage Defined Opportunity Fund (DMO) Overvalued in 2026?
Based on GuruFocus' analysis, Western Asset Mortgage Defined Opportunity Fund stock appears to be undervalued.
The current stock price of $10.45 is trading 0.8% below its estimated GF Value™ of $10.53.
GuruFocus considers Western Asset Mortgage Defined Opportunity Fund to be Fairly Valued.
Key valuation signals for DMO:
ROE %: 8.89% (12% below median its 10-year median of 10.13)
GF Value™: $10.53 vs. price of $10.45 (0.8% below fair value)
Industry Position: 33.9% above the Asset Management median (#595 of 1611)
No single metric tells the full story. See the DMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Asset Mortgage Defined Opportunity Fund Business Description
Western Asset Mortgage Defined Opportunity Fund Inc is a non-diversified, limited-term, closed-end management investment company. The fund's primary investment objective is to provide current income. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing in a diverse portfolio of mortgage-backed securities, consisting of non-agency residential mortgage-backed securities and commercial mortgage-backed securities.
54GF Score
Get the complete analysis for DMO
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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