(VMO) Municipal Opportunity Trust - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 643m USD | Total Return: 13.7% in 12m
Avg Turnover: 2.81M
Qual. Beats: -1
Rev. Trend: 40.5%
Warnings
Choppy
Tailwinds
No distinct edge detected
Invesco Municipal Opportunity Trust (VMO) is a closed-end fixed income mutual fund managed by Invesco Ltd. and its global subsidiaries. Established in 1992, the fund focuses on the United States municipal bond market, specifically targeting investment-grade securities such as municipal notes, commercial paper, and lease obligations. The management team utilizes fundamental analysis and a bottom-up security selection process to construct the portfolio.
Closed-end funds differ from open-end mutual funds by issuing a fixed number of shares that trade on an exchange, often at a premium or discount to their net asset value. Municipal securities are typically issued by local or state governments to fund public projects, and they frequently offer interest income that is exempt from federal income taxes. You can further evaluate these valuation metrics and tax-equivalent yields on ValueRay.
The trust operates within the Asset Management & Custody Banks sub-industry, maintaining a diversified portfolio of debt instruments across various jurisdictions in the U.S. By focusing on investment-grade assets, the fund aims to mitigate credit risk while providing exposure to the municipal debt sector.
- Federal Reserve interest rate pivots dictate net asset value and share pricing
- Municipal bond credit spreads influence underlying portfolio valuation and income distributions
- Leverage costs impact monthly dividend sustainability for common shareholders
- Tax policy changes affect investor demand for tax-exempt municipal income yields
- State and local government fiscal health determines credit quality of holdings
| Net Income: 42.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 5.55 > 1.0 |
| NWC/Revenue: 20.43% < 20% (prev 2.21%; Δ 18.22% < -1%) |
| CFO/TA 0.11 > 3% & CFO 120.7m > Net Income 42.9m |
| Net Debt (378.4m) to EBITDA (58.6m): 6.46 < 3 |
| Current Ratio: error (cannot be calculated; needs correct Total Current Assets and Liabilities) |
| Outstanding Shares: last quarter (67.4m) vs 12m ago 0.0% < -2% |
| Gross Margin: 70.66% > 18% (prev 0.78%; Δ 6.99k% > 0.5%) |
| Asset Turnover: 7.32% > 50% (prev 6.88%; Δ 0.44% > 0%) |
| Interest Coverage Ratio: 1.73 > 6 (EBITDA TTM 58.6m / Interest Expense TTM 33.8m) |
| A: 0.02 (Total Current Assets 16.9m - Total Current Liabilities 0.0) / Total Assets 1.08b |
| B: -0.11 (Retained Earnings -119.4m / Total Assets 1.08b) |
| C: 0.05 (EBIT TTM 58.6m / Avg Total Assets 1.13b) |
| D: 1.75 (Book Value of Equity 690.2m / Total Liabilities 393.5m) |
| Altman-Z'' = 1.93 = BBB |
As of May 24, 2026, the stock is trading at USD 9.50 with a total of 212,896 shares traded.
Over the past week, the price has changed by +0.10%,
over one month by -0.60%,
over three months by -2.44% and
over the past year by +13.71%.
Municipal Opportunity Trust has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold VMO.
- StrongBuy: 1
- Buy: 0
- Hold: 0
- Sell: 1
- StrongSell: 0
P/S = 33.2633
P/B = 0.9322
Revenue TTM = 82.8m USD
EBIT TTM = 58.6m USD
EBITDA TTM = 58.6m USD
Long Term Debt = unknown (none)
Short Term Debt = 29.8m USD (from shortTermDebt, two quarters ago)
Debt = 383.6m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 378.4m USD (calculated: Debt 383.6m - CCE 5.18m)
Enterprise Value = 1.02b USD (643.4m + Debt 383.6m - CCE 5.18m)
Interest Coverage Ratio = 1.73 (Ebit TTM 58.6m / Interest Expense TTM 33.8m)
EV/FCF = 8.47x (Enterprise Value 1.02b / FCF TTM 120.7m)
FCF Yield = 11.81% (FCF TTM 120.7m / Enterprise Value 1.02b)
FCF Margin = 145.7% (FCF TTM 120.7m / Revenue TTM 82.8m)
Net Margin = 51.84% (Net Income TTM 42.9m / Revenue TTM 82.8m)
Gross Margin = 70.66% ((Revenue TTM 82.8m - Cost of Revenue TTM 24.3m) / Revenue TTM)
Gross Margin QoQ = 88.10% (prev 78.43%)
Tobins Q-Ratio = 0.94 (Enterprise Value 1.02b / Total Assets 1.08b)
Interest Expense / Debt = 8.81% (Interest Expense 33.8m / Debt 383.6m)
Taxrate = 21.0% (US default 21%)
NOPAT = 46.3m (EBIT 58.6m * (1 - 21.00%))
Current Ratio = unknown (Total Current Assets 16.9m / Total Current Liabilities 0.0)
Debt / Equity = 0.56 (Debt 383.6m / totalStockholderEquity, last quarter 690.2m)
Debt / EBITDA = 6.46 (Net Debt 378.4m / EBITDA 58.6m)
Debt / FCF = 3.14 (Net Debt 378.4m / FCF TTM 120.7m)
Total Stockholder Equity = 700.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.79% (Net Income 42.9m / Total Assets 1.08b)
RoE = 5.24% (Net Income TTM 42.9m / Total Stockholder Equity 820.4m)
RoCE = 5.41% (EBIT 58.6m / Capital Employed (Total Assets 1.08b - Current Liab 0.0))
RoIC = 5.43% (EBIT 58.6m / (Assets 1.08b - Curr.Liab 0.0 - Cash 5.18m))
WACC = 6.73% (E(643.4m)/V(1.03b) * Re(6.59%) + D(383.6m)/V(1.03b) * Rd(8.81%) * (1-Tc(0.21)))
Discount Rate = 6.59% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -34.78 | Cagr: 0.0%
[DCF] Terminal Value 77.97% ; FCFF base≈98.8m ; Y1≈113.3m ; Y5≈166.7m
[DCF] Fair Price = 31.59 (EV 2.51b - Net Debt 378.4m = Equity 2.13b / Shares 67.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.88 | # QB: -1
Revenue Correlation: 40.52 | Revenue CAGR: 1.74% | SUE: N/A | # QB: 0