VMO Stock Analysis: Municipal Opportunity Trust | NYSE
Asset Management | NYSE, USA | Market Cap: 614m USD | 12M Return: -5% | US46132C1071 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 3.40M
Qual. Beats: 0
Rev. Trend: -94.1%
Warnings
Tailwinds
Seasonality
Invesco Municipal Opportunity Trust (NYSE: VMO) is a closed-end fixed income mutual fund launched and co-managed by Invesco Ltd. through multiple of its global advisory subsidiaries. The fund is domiciled in the United States and was formed on April 24, 1992, formerly operating under the name Invesco Van Kampen Municipal Opportunity Trust. As a closed-end fund listed on a major exchange, VMO trades like a stock and can trade at a premium or discount to its underlying net asset value, a common structural feature of this investment vehicle.
The fund invests primarily in U.S. investment grade municipal securities, including municipal bonds, municipal notes, municipal commercial paper, and lease obligations. These securities are debt instruments issued by state and local governments, and income from them is generally exempt from federal income tax. The portfolio is constructed using fundamental analysis combined with a bottom-up security selection approach.
VMO is classified within the Financials sector and the Asset Management & Custody Banks sub-industry, reflecting its role as a pooled investment vehicle rather than an operating company. It qualifies as a small-cap security with a market capitalization of approximately $658 million.
- Treasury yield surge pressures municipal bond NAV
- Fed rate cuts boost tax-exempt bond demand
- Leverage costs squeeze fund distributions as short rates rise
| Net Income: 19.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -5.40 > 1.0 |
| NWC/Revenue: 18.22% < 20% (prev 33.89%; Δ -15.68% < -1%) |
| CFO/TA 0.03 > 3% & CFO 29.8m > Net Income 19.3m |
| Net Debt (378.4m) to EBITDA (35.0m): 10.83 < 3 |
| Current Ratio: 1.76 > 1.5 & < 3 |
| Outstanding Shares: last quarter (67.4m) vs 12m ago 0.0% < -2% |
| Gross Margin: 84.63% > 18% (prev 57.45%; Δ 27.18% > 0.5%) |
| Asset Turnover: 3.66% > 50% (prev 3.82%; Δ -0.16% > 0%) |
| Interest Coverage Ratio: 2.23 > 6 (EBIT TTM 35.0m / Interest Expense TTM 15.7m) |
| A: 0.01 (Total Current Assets 16.9m - Total Current Liabilities 9.59m) / Total Assets 1.08b |
| B: -0.11 (Retained Earnings -119.4m / Total Assets 1.08b) |
| C: 0.03 (EBIT TTM 35.0m / Avg Total Assets 1.10b) |
| D: 1.75 (Book Value of Equity 690.2m / Total Liabilities 393.5m) |
| Altman-Z'' = 1.74 = BBB |
As of October 05, 2026, the stock is trading at USD 8.51 with a total of 451,642 shares traded. Over the past week, the price has changed by -1.39%, over one month by -9.53%, over three months by -12.34% and over the past year by -4.97%.
Current recommended Stop Loss: 8.20 (which is 3.6% or 1.9 ATR below the current price).
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/E Trailing = 29.8214
P/S = 10.5222
P/B = 0.8648
Revenue TTM = 40.3m USD
EBIT TTM = 35.0m USD
EBITDA TTM = 35.0m 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 = 992.8m USD (614.4m + Debt 383.6m - CCE 5.18m)
Interest Coverage Ratio = 2.23 (Ebit TTM 35.0m / Interest Expense TTM 15.7m)
EV/FCF = 33.27x (Enterprise Value 992.8m / FCF TTM 29.8m)
FCF Yield = 3.01% (FCF TTM 29.8m / Enterprise Value 992.8m)
FCF Margin = 74.12% (FCF TTM 29.8m / Revenue TTM 40.3m)
Net Margin = 47.91% (Net Income TTM 19.3m / Revenue TTM 40.3m)
Gross Margin = 84.63% ((Revenue TTM 40.3m - Cost of Revenue TTM 6.19m) / Revenue TTM)
Gross Margin QoQ = 88.10% (prev 78.43%)
Tobins Q-Ratio = 0.92 (Enterprise Value 992.8m / Total Assets 1.08b)
Interest Expense / Debt = 4.08% (Interest Expense 15.7m / Debt 383.6m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = 27.6m (EBIT 35.0m * (1 - 21.00%))
Current Ratio = 1.76 (Total Current Assets 16.9m / Total Current Liabilities 9.59m)
Debt / Equity = 0.56 (Debt 383.6m / totalStockholderEquity, last quarter 690.2m)
Debt / EBITDA = 10.83 (Net Debt 378.4m / EBITDA 35.0m)
Debt / FCF = 12.68 (Net Debt 378.4m / FCF TTM 29.8m)
Total Stockholder Equity = 700.9m (last 4 quarters mean from totalStockholderEquity)
RoA = 1.76% (Net Income 19.3m / Total Assets 1.08b)
RoE = 2.75% (Net Income TTM 19.3m / Total Stockholder Equity 700.9m)
RoCE = 3.25% (EBIT 35.0m / Capital Employed (Total Assets 1.08b - Current Liab 9.59m))
RoIC = 2.58% (NOPAT 27.6m / Invested Capital 1.07b)
WACC = 5.41% (E(614.4m)/V(998.0m) * Re(6.77%) + D(383.6m)/V(998.0m) * Rd(4.08%) * (1-Tc(0.21)))
Discount Rate = 6.77% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -40.62 | Cagr: 0.0%
[DCF] Terminal Value 73.10% ; FCFF base≈54.2m ; Y1≈47.6m ; Y5≈38.4m
[DCF] Fair Price = 3.54 (EV 616.9m - Net Debt 378.4m = Equity 238.5m / Shares 67.4m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.78 | # QB: 0
Revenue Correlation: -94.11 | Revenue CAGR: -13.80% | SUE: N/A | # QB: 0