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Stock Analysis & ValuationNuveen Missouri Quality Municipal Income Fund (NOM)

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$11.65
Sector Valuation Confidence Level
High
Valuation methodValue, $Upside, %
Artificial intelligence (AI)345.442865
Intrinsic value (DCF)9.37-20
Graham-Dodd Methodn/a
Graham Formula21.8988

Strategic Investment Analysis

Company Overview

Nuveen Missouri Quality Municipal Income Fund (NOM) is a closed-end fixed income mutual fund managed by Nuveen Investments, Inc., focusing on tax-exempt municipal securities within Missouri. The fund targets investment-grade municipal bonds, offering investors income exempt from federal and Missouri state taxes. With a strategy rooted in fundamental analysis and bottom-up stock picking, NOM benchmarks its performance against the S&P Missouri Municipal Bond Index and the S&P National Municipal Bond Index. Established in 1993, the fund appeals to income-focused investors seeking tax-advantaged returns in a low-risk fixed-income environment. Operating in the Financial Services sector under Asset Management - Income, NOM provides a niche investment opportunity for those prioritizing stable income and tax efficiency. Its $25.2 million market cap reflects its specialized focus, catering to investors with specific geographic and tax considerations.

Investment Summary

Nuveen Missouri Quality Municipal Income Fund (NOM) presents a compelling option for income-seeking investors, particularly those in high tax brackets benefiting from its tax-exempt status. The fund’s focus on Missouri municipal bonds provides geographic concentration, which may appeal to local investors but also introduces regional economic risks. With a beta of 0.407, NOM exhibits lower volatility compared to broader markets, aligning with its fixed-income mandate. However, its modest market cap and reliance on Missouri’s fiscal health could limit diversification benefits. The fund’s $0.81 dividend per share and 0.36 diluted EPS indicate steady income generation, though its high total debt relative to market cap ($18.9 million) warrants caution. Investors should weigh the tax advantages against potential liquidity constraints and interest rate sensitivity inherent to municipal bonds.

Competitive Analysis

Nuveen Missouri Quality Municipal Income Fund (NOM) competes in the niche market of state-specific municipal bond funds, leveraging Nuveen’s expertise in tax-advantaged fixed income. Its competitive edge lies in its exclusive focus on Missouri, offering localized tax benefits unmatched by national municipal funds. However, this specialization also narrows its appeal compared to broader municipal bond ETFs or multi-state funds. NOM’s investment-grade focus mitigates credit risk but may lag in yield compared to high-yield alternatives. The fund’s closed-end structure provides stable capital for long-term investments but can trade at premiums/discounts to NAV, adding volatility. Nuveen’s brand and active management lend credibility, yet passive alternatives like ETFs pose cost competition. NOM’s performance is tightly linked to Missouri’s economic health, a double-edged sword—strong state finances enhance returns, but budgetary strains could disproportionately impact the fund.

Major Competitors

  • VanEck Vectors High-Yield Municipal Index ETF (HYD): HYD offers broader exposure to high-yield municipal bonds nationwide, appealing to investors seeking higher returns but with elevated credit risk. Unlike NOM, it lacks state-specific tax benefits but provides greater diversification. Its ETF structure ensures liquidity and lower fees, challenging NOM’s closed-end model.
  • iShares National Muni Bond ETF (MUB): MUB tracks investment-grade municipal bonds across the U.S., offering diversification and liquidity. While it lacks NOM’s Missouri tax exemption, its lower expense ratio and passive management attract cost-conscious investors. MUB’s scale and ETF format make it a default choice for generalist municipal bond exposure.
  • Nuveen AMT-Free Municipal Credit Income Fund (NVG): Another Nuveen fund, NVG focuses on national municipal bonds with AMT-free income, appealing to a broader audience than NOM’s state-specific approach. NVG’s larger AUM and national scope provide diversification but dilute localized tax advantages.
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