Invesco Municipal Trust Fundamental Analysis (NYSE: VKQ)
Invesco Municipal Trust (NYSE: VKQ) shows weak financial fundamentals with a PE ratio of 32.33, profit margin of 47.89%, and ROE of 3.08%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VKQ's fundamental strength across five key dimensions:
Efficiency Score
WeakVKQ struggles to generate sufficient returns from assets.
Valuation Score
ModerateVKQ shows balanced valuation metrics.
Growth Score
ModerateVKQ shows steady but slowing expansion.
Financial Health Score
ExcellentVKQ maintains a strong and stable balance sheet.
Profitability Score
ModerateVKQ maintains healthy but balanced margins.
Key Financial Metrics
Is VKQ Expensive or Cheap?
P/E Ratio
VKQ trades at 32.33 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VKQ's PEG of 0.24 indicates potential undervaluation.
Price to Book
The market values Invesco Municipal Trust at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.88 times EBITDA. This is generally considered low.
How Well Does VKQ Make Money?
Net Profit Margin
For every $100 in sales, Invesco Municipal Trust keeps $47.89 as profit after all expenses.
Operating Margin
Core operations generate 83.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.08 in profit for every $100 of shareholder equity.
ROA
Invesco Municipal Trust generates $1.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Invesco Municipal Trust generates strong operating cash flow of $24.41M, reflecting robust business health.
Free Cash Flow
Invesco Municipal Trust generates strong free cash flow of $24.41M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.44 in free cash annually.
FCF Yield
VKQ converts 4.54% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
15.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How VKQ Stacks Against Its Sector Peers
| Metric | VKQ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.33 | N/A | Distorted |
| ROE | 3.08% | N/A | Distorted |
| Net Margin | 47.89% | N/A | Strong |
| Debt/Equity | 0.58 | N/A | Distorted |
| Current Ratio | 1.05 | N/A | Neutral |
| ROA | 1.87% | N/A | Weak |
VKQ outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Invesco Municipal Trust's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: N/A
EPS CAGR
N/A
Industry Style: N/A
FCF CAGR
N/A
Industry Style: N/A