NYSE:VLT

Stock Analysis Report

Executive Summary

Invesco High Income Trust II is a closed ended fixed income mutual fund launched by Invesco Ltd.

Rewards


Snowflake Analysis

Share Price & News

How has Invesco High Income Trust II's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VLT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

VLT

-1.3%

US Capital Markets

-1.0%

US Market


1 Year Return

2.7%

VLT

15.5%

US Capital Markets

18.0%

US Market

Return vs Industry: VLT underperformed the US Capital Markets industry which returned 15.5% over the past year.

Return vs Market: VLT underperformed the US Market which returned 18% over the past year.


Shareholder returns

VLTIndustryMarket
7 Day0.4%-1.3%-1.0%
30 Day0.7%-0.7%0.6%
90 Day2.5%4.9%7.9%
1 Year11.3%2.7%17.8%15.5%20.4%18.0%
3 Year24.5%-1.0%38.1%30.3%48.0%38.5%
5 Year41.4%-5.2%81.5%64.7%72.2%53.3%

Price Volatility Vs. Market

How volatile is Invesco High Income Trust II's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Invesco High Income Trust II undervalued compared to its fair value and its price relative to the market?

15.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VLT ($14.5) is trading above our estimate of fair value ($12.02)

Significantly Below Fair Value: VLT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VLT is good value based on its PE Ratio (15.4x) compared to the Capital Markets industry average (34x).

PE vs Market: VLT is good value based on its PE Ratio (15.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VLT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VLT is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (6.6x).

Future Growth

How is Invesco High Income Trust II forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.5%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Invesco High Income Trust II has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Invesco High Income Trust II performed over the past 5 years?

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VLT has high quality earnings.

Growing Profit Margin: VLT's current net profit margins (73.2%) are higher than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: VLT's earnings have grown by 4.2% per year over the past 5 years.

Accelerating Growth: VLT's earnings growth over the past year (186.8%) exceeds its 5-year average (4.2% per year).

Earnings vs Industry: VLT earnings growth over the past year (186.8%) exceeded the Capital Markets industry 8.4%.


Return on Equity

High ROE: VLT's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Invesco High Income Trust II's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: VLT has a low level of unsold assets or inventory.

Debt Coverage by Assets: VLT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: VLT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if VLT has a sufficient allowance for bad loans.

Low Risk Liabilities: VLT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if VLT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: VLT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if VLT has an appropriate level of bad loans.

Dividend

What is Invesco High Income Trust II's current dividend yield, its reliability and sustainability?

7.98%

Current Dividend Yield


Dividend Yield vs Market

company8.0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: VLT's dividend (7.98%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: VLT's dividend (7.98%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: VLT's dividend payments have been volatile in the past 10 years.

Growing Dividend: VLT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (122.9%), VLT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

How experienced are the management team and are they aligned to shareholders interests?

17.1yrs

Average board tenure


CEO

Colin Meadows (48yo)

0

Mr. Colin D. Meadows, J.D. has been Senior Managing Director of Invesco Ltd. since 2006 and serves as its Head of Private Markets and Global Institutional since 2015. In April 2014, his role further expand ...


Board Members

NamePositionTenureCompensationOwnership
Colin Meadows
Principal Executive Officer0yrsno datano data
Rodney Dammeyer
0yrsUS$130.00no data
Jerry Choate
Independent Trustee17.1yrsUS$1.49kno data
Suzanne Woolsey
Independent Trustee17.1yrsUS$2.03kno data
Hugo Sonnenschein
Independent Trustee26.1yrsUS$1.96kno data
David Arch
Independent Trustee31.1yrsUS$2.03k0.0027% $3.2k
Linda Heagy
Independent Trustee17.1yrsUS$1.56kno data
R. Kennedy
Independent Trustee17.1yrsUS$1.56kno data
Larry Soll
Trustee Nominee0yrsno datano data
Prema Mathai-Davis
Trustee Nominee0yrsno datano data

17.1yrs

Average Tenure

75.5yo

Average Age

Experienced Board: VLT's board of directors are seasoned and experienced ( 17.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Invesco High Income Trust II's company bio, employee growth, exchange listings and data sources


Key Information


Location

  • Invesco High Income Trust II
  • Two Peachtree Pointe
  • 1555 Peachtree Street North East
  • Atlanta
  • Georgia
  • 30309
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VLTNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 1989

Biography

Invesco High Income Trust II is a closed ended fixed income mutual fund launched by Invesco Ltd. The fund is co-managed by Invesco Advisers, Inc, INVESCO Asset Management (Japan) Limited, INVESCO Asset Management Deutschland GmbH, INVESCO Asset Management Limited, Invesco Hong Kong Limited, INVESCO Senior Secured Management, Inc., and Invesco Canada Ltd. It invests in the fixed income markets. The fund seeks to invest in securities rated between BB and C by Standard and Poor’s. It seeks to maintain an average duration of around three to four years for its portfolio. The fund benchmarks the performance of its portfolio against the Barclays U.S. Corporate High Yield 2% Issuer Cap Inde. It was formerly known as Invesco Van Kampen High Income Trust II. Invesco High Income Trust II was formed on April 28, 1989 and is domiciled in the United States. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:35
End of Day Share Price2020/02/21 00:00
Earnings2019/08/31
Annual Earnings2019/02/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.