AMEX:VKI

Stock Analysis Report

Invesco Advantage Municipal Income Trust II

Executive Summary

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

Rewards


Snowflake Analysis

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.8%

VKI

2.1%

US Capital Markets

1.7%

US Market


1 Year Return

9.6%

VKI

18.8%

US Capital Markets

23.2%

US Market

Return vs Industry: VKI underperformed the US Capital Markets industry which returned 18.7% over the past year.

Return vs Market: VKI underperformed the US Market which returned 24.4% over the past year.


Shareholder returns

VKIIndustryMarket
7 Day-0.8%2.1%1.7%
30 Day1.3%4.1%4.2%
90 Day1.7%14.5%11.9%
1 Year15.2%9.6%21.2%18.8%25.8%23.2%
3 Year19.2%1.1%48.7%40.3%52.8%42.9%
5 Year27.4%-4.9%95.7%77.5%75.2%55.8%

Price Volatility Vs. Market

How volatile is Invesco Advantage Municipal 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 Advantage Municipal Income Trust II undervalued compared to its fair value and its price relative to the market?

10.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VKI ($11.36) is trading above our estimate of fair value ($0.42)

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


Price To Earnings Ratio

PE vs Industry: VKI is good value based on its PE Ratio (10.5x) compared to the Capital Markets industry average (36.2x).

PE vs Market: VKI is good value based on its PE Ratio (10.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VKI 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 Advantage Municipal Income Trust II forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.0%

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 Advantage Municipal 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 Advantage Municipal Income Trust II performed over the past 5 years?

-35.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VKI has a large one-off gain of $24.9M impacting its August 31 2019 financial results.

Growing Profit Margin: VKI's current net profit margins are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: VKI's earnings have declined by -35.7% per year over the past 5 years.

Accelerating Growth: VKI's earnings growth over the past year (3109.3%) exceeds its 5-year average (-35.7% per year).

Earnings vs Industry: VKI earnings growth over the past year (3109.3%) exceeded the Capital Markets industry 20.6%.


Return on Equity

High ROE: VKI's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed

Financial Health

How is Invesco Advantage Municipal 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: VKI has a low level of unsold assets or inventory.

Debt Coverage by Assets: VKI's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

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

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

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

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

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

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

Dividend

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

4.78%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.4%markettop25%3.6%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: VKI's dividend (4.75%) is higher than the bottom 25% of dividend payers in the US market (1.39%).

High Dividend: VKI's dividend (4.75%) is in the top 25% of dividend payers in the US market (3.67%)


Stability and Growth of Payments

Stable Dividend: VKI's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.1%), VKI's dividend payments are 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

What is the CEO of Invesco Advantage Municipal Income Trust II's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Colin Meadows (48yo)

0yrs

Tenure

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 ...


Management Age and Tenure

5.0yrs

Average Tenure

53yo

Average Age

Experienced Management: VKI's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

26.0yrs

Average Tenure

78yo

Average Age

Experienced Board: VKI's board of directors are seasoned and experienced ( 26 years average tenure).


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Jeffrey Kupor (51yo)

    Senior Vice President

    • John Zerr (57yo)

      Chief Legal Officer

      • Colin Meadows (48yo)

        Principal Executive Officer and President

        • Mark Paris

          Portfolio Manager

          • Tenure: 5yrs
        • Sheri Morris (55yo)

          Principal Financial Officer

          • James Phillips

            Portfolio Manager

            • Tenure: 5yrs
          • Robert Stryker

            Portfolio Manager

            • Tenure: 15yrs
          • Valinda Arnett-Patton (60yo)

            Chief Compliance Officer

            • Crissie Wisdom (50yo)

              Anti-Money Laundering Compliance Officer

              • John Schorle

                Portfolio Manager


                Board Members

                • Jim Bunch (77yo)

                  Trustee Nominee

                  • Rod Dammeyer (79yo)

                    Independent Trustee

                    • Compensation: US$7.31k
                  • Sue Woolsey (78yo)

                    Independent Trustee

                    • Tenure: 17yrs
                    • Compensation: US$6.16k
                  • Bruce Crockett (75yo)

                    Trustee Nominee

                    • Jack Fields (67yo)

                      Trustee Nominee

                      • Hugo Sonnenschein (79yo)

                        Independent Trustee

                        • Tenure: 26yrs
                        • Compensation: US$5.94k
                      • David Arch (74yo)

                        Independent Trustee

                        • Tenure: 31yrs
                        • Compensation: US$6.17k
                      • Albert Dowden (78yo)

                        Trustee Nominee

                        • Wayne Whalen (80yo)

                          Chairman

                          • Compensation: US$6.16k
                        • Frank Bayley (80yo)

                          Trustee Nominee

                          Company Information

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


                          Key Information


                          Location

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

                          Listings

                          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                          VKIAMEX (NYSE MKT LLC)YesCommon SharesUSUSDOct 1993

                          Biography

                          Invesco Advantage Municipal 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 Canada Ltd., Invesco Hong Kong Limited, and INVESCO Senior Secured Management, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in investment grade municipal securities which include municipal bonds, municipal notes, municipal commercial paper, and lease obligations. It employs fundamental analysis with a bottom-up security selection approach to create its portfolio. The fund was formerly known as Invesco Van Kampen Advantage Municipal Income Trust II. Invesco Advantage Municipal Income Trust II was formed on August 27, 1993 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 Analysis2020/01/17 01:43
                          End of Day Share Price2020/01/16 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.