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LEO

BNY Mellon Strategic Municipals, Inc.

LEO

BNY Mellon Strategic Municipals, Inc. • NYSE
$6.22 ▲ 0.16% (+0.01)
Market Cap $387.47 M
52w High $6.48
52w Low $5.55
Dividend Yield 0.25%
P/E 155.5
Volume 206.90K
Outstanding Shares 62.29M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $14.079M ▼ $0 ▼ $-20.54M ▼ -145.897% ▼ $-0.33 ▼ $-16.387M ▼
Q4-2024 $14.481M ▲ $1.903M ▲ $22.833M ▼ 157.673% ▼ $0.37 ▼ $0 ▼
Q2-2024 $14.214M ▲ $-1.957M ▼ $50.681M ▲ 356.553% ▲ $0.81 ▲ $54.811M ▲
Q4-2023 $7.229M ▼ $30.765M ▲ $-29.104M ▼ -402.584% ▼ $-0.49 ▼ $-25.324M ▼
Q2-2023 $8.546M $22.112M $34.225M 400.463% $0.52 $36.769M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $3.36M ▼ $660.709M ▼ $236.68M ▲ $424.029M ▼
Q4-2024 $3.488M ▲ $677.007M ▲ $225.336M ▲ $451.671M ▲
Q2-2024 $1.017M ▼ $631.107M ▲ $195.168M ▼ $435.939M ▲
Q4-2023 $6.231M ▲ $624.251M ▼ $231.892M ▲ $392.359M ▼
Q2-2023 $1.924M $663.163M $153.302M $509.861M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $-20.54M ▼ $9.253M ▼ $-12.196M ▲ $2.815M ▼ $-128.136K ▼ $9.253M ▲
Q4-2024 $22.833M ▼ $9.275M ▲ $-29.208M ▼ $22.404M ▲ $2.471M ▲ $-19.933M ▼
Q2-2024 $50.681M ▲ $-3.988M ▼ $36.738M ▲ $-37.964M ▼ $-5.214M ▼ $32.75M ▲
Q4-2023 $5.121M ▼ $5.128M ▲ $11.828M ▼ $-12.649M ▲ $4.307M ▲ $5.128M ▲
Q2-2023 $34.225M $4.601M $31.609M $-38.458M $-2.249M $4.601M

Five-Year Company Overview

Income Statement

Income Statement Earnings have been quite up‑and‑down over the last few years. The fund had a weak year with losses in the recent past, but has since swung back to solid profitability, with the latest year looking much stronger than the one before it. That rebound suggests the portfolio has benefited from more favorable market conditions for municipal bonds or better positioning. However, the history shows that results can be volatile from year to year, which is typical for a leveraged, actively managed municipal bond fund that is sensitive to interest rates and credit spreads.

Balance Sheet

Balance Sheet The balance sheet looks fairly stable, with total assets moving within a relatively narrow band and equity rebuilding after an earlier dip. The fund uses a meaningful but not extreme amount of leverage, and that leverage has not changed much in recent years. Having little cash on hand is normal for a closed‑end fund that aims to stay fully invested, but it does mean the fund relies on portfolio liquidity and borrowing arrangements rather than cash buffers. Overall, the structure appears steady, but performance is naturally tied to how the underlying municipal bonds and the cost of leverage behave over time.

Cash Flow

Cash Flow Cash generation appears consistent: operating cash flow has been steady and in line with free cash flow, and there is effectively no spending on fixed assets since this is an investment fund, not an operating company. That pattern suggests the fund is doing what it is designed to do—turn its investment portfolio into ongoing cash distributions—without major internal reinvestment needs. However, the modest margin of cash flow underscores that distributions depend on both income from the bond portfolio and financing conditions, not on large internal cash cushions.

Competitive Edge

Competitive Edge LEO’s edge comes less from the fund itself and more from the platform behind it. Being part of BNY Mellon gives it access to large research teams, trading infrastructure, and specialized municipal bond expertise. The sub‑adviser, Insight, emphasizes active credit research and risk‑focused portfolio construction, which can help differentiate it from simpler, index‑style municipal products. The long operating history through many interest‑rate cycles also adds credibility. On the other hand, the municipal bond fund space is crowded, with many competitors offering similar tax‑exempt income strategies, so sustained outperformance and disciplined risk management are key to maintaining any advantage.

Innovation and R&D

Innovation and R&D Innovation here is mainly about investment process and technology rather than new products. The broader BNY Mellon group is using data analytics, AI, and improved digital tools to support portfolio managers and risk teams. LEO likely benefits indirectly from these capabilities, along with Insight’s structured, risk‑based approach to building resilient bond portfolios. There is also potential for more ESG integration and more advanced analytics over time. Still, nothing suggests a unique, proprietary edge specific to this single fund; its strength lies in tapping into the larger organization’s evolving tools and processes rather than standalone R&D.

Summary

LEO is a long‑running, actively managed municipal bond closed‑end fund backed by a large, well‑resourced parent. Financially, it shows the typical pattern of a leveraged bond fund: earnings can swing with shifts in interest rates and credit conditions, but the balance sheet and cash flows look generally steady and aligned with its mandate. Leverage and rate sensitivity are the main financial risks, while the main strengths are experienced management, institutional research support, and a clear focus on tax‑exempt income. Future developments in BNY Mellon’s analytics and risk‑management tools may gradually influence how the fund is run, but investors should expect performance to remain closely tied to broader municipal bond market conditions and the cost of borrowing rather than to product innovation alone.

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