(VKQ) Municipal Trust - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 529m USD | Total Return: 13.4% in 12m
Avg Turnover: 2.90M
Qual. Beats: -1
Rev. Trend: 44.5%
Warnings
Choppy
Tailwinds
No distinct edge detected
Invesco Municipal Trust (VKQ) is a closed-ended fixed income mutual fund that specializes in investment-grade municipal securities, including bonds, notes, and lease obligations. Managed by a global suite of Invesco subsidiaries, the fund utilizes a bottom-up, fundamental analysis strategy to select debt instruments issued by local and state governments. Established in 1991, the trust provides investors with exposure to debt markets typically used to fund public infrastructure and essential services.
The municipal bond sector is a key component of the U.S. credit market, often characterized by tax-exempt interest income and historically lower default rates compared to corporate high-yield debt. As a closed-ended fund, VKQ issues a fixed number of shares that trade on the New York Stock Exchange, allowing the fund to remain fully invested without managing daily inflows and outflows. Investors can evaluate the funds historical performance and yield metrics further on ValueRay.
- Federal Reserve interest rate pivots impact net asset value and share pricing
- Municipal bond credit spreads fluctuate based on state and local fiscal health
- Leverage costs correlate directly with short-term borrowing rates and fund distributions
- Changes in federal tax policy alter the demand for tax-exempt income streams
- Infrastructure spending legislation influences new issuance volume and portfolio reinvestment yields
| Net Income: 37.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -10.19 > 1.0 |
| NWC/Revenue: 14.29% < 20% (prev 3.59%; Δ 10.70% < -1%) |
| CFO/TA 0.06 > 3% & CFO 59.0m > Net Income 37.0m |
| Net Debt (332.1m) to EBITDA (49.7m): 6.68 < 3 |
| Current Ratio: error (cannot be calculated; needs correct Total Current Assets and Liabilities) |
| Outstanding Shares: last quarter (55.3m) vs 12m ago 0.0% < -2% |
| Gross Margin: 73.34% > 18% (prev 0.84%; Δ 7.25k% > 0.5%) |
| Asset Turnover: 7.61% > 50% (prev 9.37%; Δ -1.75% > 0%) |
| Interest Coverage Ratio: 1.90 > 6 (EBITDA TTM 49.7m / Interest Expense TTM 26.1m) |
| A: 0.01 (Total Current Assets 9.96m - Total Current Liabilities 0.0) / Total Assets 911.4m |
| B: -0.11 (Retained Earnings -95.7m / Total Assets 911.4m) |
| C: 0.05 (EBIT TTM 49.7m / Avg Total Assets 915.3m) |
| D: 1.67 (Book Value of Equity 569.5m / Total Liabilities 341.9m) |
| Altman-Z'' = 1.84 = BBB |
As of May 24, 2026, the stock is trading at USD 9.54 with a total of 369,544 shares traded.
Over the past week, the price has changed by +0.52%,
over one month by -0.29%,
over three months by -1.33% and
over the past year by +13.43%.
Municipal Trust has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold VKQ.
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
P/S = 12.0738
P/B = 0.9289
Revenue TTM = 69.7m USD
EBIT TTM = 49.7m USD
EBITDA TTM = 49.7m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 332.1m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 332.1m USD (using Total Debt 332.1m, CCE unavailable)
Enterprise Value = 861.2m USD (529.0m + Debt 332.1m - (null CCE))
Interest Coverage Ratio = 1.90 (Ebit TTM 49.7m / Interest Expense TTM 26.1m)
EV/FCF = 14.59x (Enterprise Value 861.2m / FCF TTM 59.0m)
FCF Yield = 6.85% (FCF TTM 59.0m / Enterprise Value 861.2m)
FCF Margin = 84.69% (FCF TTM 59.0m / Revenue TTM 69.7m)
Net Margin = 53.08% (Net Income TTM 37.0m / Revenue TTM 69.7m)
Gross Margin = 73.34% ((Revenue TTM 69.7m - Cost of Revenue TTM 18.6m) / Revenue TTM)
Gross Margin QoQ = 87.87% (prev 81.96%)
Tobins Q-Ratio = 0.94 (Enterprise Value 861.2m / Total Assets 911.4m)
Interest Expense / Debt = 7.86% (Interest Expense 26.1m / Debt 332.1m)
Taxrate = 21.0% (US default 21%)
NOPAT = 39.3m (EBIT 49.7m * (1 - 21.00%))
Current Ratio = unknown (Total Current Assets 9.96m / Total Current Liabilities 0.0)
Debt / Equity = 0.58 (Debt 332.1m / totalStockholderEquity, last quarter 569.5m)
Debt / EBITDA = 6.68 (Net Debt 332.1m / EBITDA 49.7m)
Debt / FCF = 5.63 (Net Debt 332.1m / FCF TTM 59.0m)
Total Stockholder Equity = 577.8m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.04% (Net Income 37.0m / Total Assets 911.4m)
RoE = 5.49% (Net Income TTM 37.0m / Total Stockholder Equity 673.5m)
RoCE = 5.45% (EBIT 49.7m / Capital Employed (Total Assets 911.4m - Current Liab 0.0))
RoIC = 5.45% (EBIT 49.7m / (Assets 911.4m - Curr.Liab 0.0 - Cash none))
WACC = 6.48% (E(529.0m)/V(861.2m) * Re(6.65%) + D(332.1m)/V(861.2m) * Rd(7.86%) * (1-Tc(0.21)))
Discount Rate = 6.65% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -10.85 | Cagr: 0.0%
[DCF] Terminal Value 73.10% ; FCFF base≈96.7m ; Y1≈84.8m ; Y5≈68.5m
[DCF] Fair Price = 13.87 (EV 1.10b - Net Debt 332.1m = Equity 767.6m / Shares 55.3m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.95 | # QB: -1
Revenue Correlation: 44.49 | Revenue CAGR: 5.58% | SUE: N/A | # QB: 0