Invesco Municipal Opportunity Trust Fundamental Analysis (NYSE: VMO)
Invesco Municipal Opportunity Trust Fundamental Analysis (NYSE: VMO)
Invesco Municipal Opportunity Trust (NYSE: VMO) shows weak financial fundamentals with a PE ratio of 33.22, profit margin of 47.91%, and ROE of 2.88%. 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 52.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VMO's fundamental strength across five key dimensions:
Efficiency Score
WeakVMO struggles to generate sufficient returns from assets.
Valuation Score
ModerateVMO shows balanced valuation metrics.
Growth Score
ModerateVMO shows steady but slowing expansion.
Financial Health Score
ExcellentVMO maintains a strong and stable balance sheet.
Profitability Score
ExcellentVMO achieves industry-leading margins.
Key Financial Metrics
Is VMO Expensive or Cheap?
P/E Ratio
VMO trades at 33.22 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VMO's PEG of -0.06 indicates potential undervaluation.
Price to Book
The market values Invesco Municipal Opportunity Trust at 0.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.76 times EBITDA. This is generally considered low.
How Well Does VMO Make Money?
Net Profit Margin
For every $100 in sales, Invesco Municipal Opportunity Trust keeps $47.91 as profit after all expenses.
Operating Margin
Core operations generate 86.81 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.88 in profit for every $100 of shareholder equity.
ROA
Invesco Municipal Opportunity Trust generates $1.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Invesco Municipal Opportunity Trust generates strong operating cash flow of $29.84M, reflecting robust business health.
Free Cash Flow
Invesco Municipal Opportunity Trust generates strong free cash flow of $29.84M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.44 in free cash annually.
FCF Yield
VMO converts 4.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.56
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
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 VMO Stacks Against Its Sector Peers
| Metric | VMO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.22 | 21.04 | Worse (Expensive) |
| ROE | 2.88% | 654.00% | Weak |
| Net Margin | 47.91% | -611.00% (disorted) | Strong |
| Debt/Equity | 0.56 | 0.87 | Strong (Low Leverage) |
| Current Ratio | 1.76 | 877.76 | Neutral |
| ROA | 1.78% | 6601.00% | Weak |
VMO outperforms its industry in 2 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 Opportunity 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: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical