FMI Large Cap Fund Investor Class (FMIHX) Fund Overview

FMI Large Cap Fund Investor Class (FMIHX) Financial Services Profile

FMI Large Cap Fund Investor Class (FMIHX) is a non-diversified fund concentrating on large-cap value stocks exceeding $5 billion at initial purchase. Operating in the asset management sector, FMIHX distinguishes itself with a high dividend yield of 16.31% and a low P/E ratio of 9.50, targeting value through concentrated investments.

What Is the Investment Thesis for FMIHX?

FMIHX presents a compelling, albeit concentrated, investment opportunity for value-oriented investors. The fund's strategy of focusing on a limited number of large-cap value stocks, each initially exceeding $5 billion in market capitalization, offers the potential for significant returns if its stock selections appreciate. The fund's current dividend yield of 16.31% provides a substantial income stream, while its low P/E ratio of 9.50 suggests that the fund's holdings may be undervalued. However, the non-diversified nature of the fund increases its volatility and risk profile. Upcoming economic data releases and potential shifts in market sentiment could impact the fund's performance. The fund's success hinges on its ability to continue identifying and capitalizing on undervalued opportunities in the large-cap space.

Based on FMP financials and quantitative analysis

FMIHX Key Highlights

Market capitalization of $1.23 billion indicates a substantial asset base.

• P/E ratio of 9.50 suggests potential undervaluation compared to the broader market.
• Profit margin of 1.1% reflects the fund's profitability after expenses.
• Gross margin of 18.5% indicates the fund's efficiency in generating revenue from its investments.
• Dividend yield of 16.31% provides a significant income stream for investors.

Who Are FMIHX's Competitors?

FMIHX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FMIHX's Key Strengths?

High dividend yield of 16.31% provides a significant income stream.

• Low P/E ratio of 9.50 suggests potential undervaluation.
• Focus on large-cap value stocks offers stability and potential for long-term growth.
• Experienced investment management team.

What Are FMIHX's Weaknesses?

Non-diversified portfolio increases volatility and risk.

• Concentrated holdings can be significantly impacted by the performance of a few stocks.
• Profit margin of 1.1% is relatively low compared to peers.
• Dependence on value investing strategy may underperform in growth-oriented markets.

What Are the Key Risks for FMIHX?

Financial-distress signal — its Altman Z-Score of 1.59 sits in the distress zone (elevated bankruptcy risk).

• Market volatility could negatively impact the fund's performance, especially given its non-diversified nature.
• Changes in investor sentiment towards value stocks could lead to underperformance.
• Increased competition from other asset management firms could erode market share.
• Dependence on the performance of a limited number of large-cap stocks increases concentration risk.
• Economic downturn could negatively impact corporate earnings and dividend payouts.

What Threats Does FMIHX Face?

• Rising interest rates could negatively impact the valuation of value stocks.
• Economic downturn could lead to decreased corporate earnings and dividend cuts.
• Increased competition from passive investment strategies.
• Regulatory changes could impact the asset management industry.

What Are FMIHX's Competitive Advantages?

• Established track record in value investing.
• Experienced investment management team with expertise in large-cap stocks.
• Disciplined investment process based on fundamental analysis.
• High dividend yield attracts income-seeking investors.
• Concentrated portfolio allows for greater potential returns from successful investments.

What Does FMIHX Do?

FMI Large Cap Fund Investor Class (FMIHX) is a fund that focuses its investments in a limited number of large-capitalization value stocks. These are defined as companies with a market capitalization exceeding $5 billion at the time of their initial purchase. The fund invests in companies listed or traded on a national securities exchange or through a national securities association, including foreign securities traded similarly. As a non-diversified fund, FMIHX concentrates its holdings, which can lead to greater volatility but also the potential for higher returns compared to more diversified funds. The fund's investment strategy is centered around identifying and investing in undervalued companies with strong fundamentals, aiming to provide long-term capital appreciation for its investors. The fund's approach involves in-depth fundamental analysis to select companies that are believed to be trading below their intrinsic value. This value-oriented strategy seeks to capitalize on market inefficiencies and generate returns through the eventual appreciation of these undervalued stocks. The fund's investment decisions are guided by a disciplined approach to stock selection, focusing on factors such as financial health, competitive positioning, and management quality. The fund's concentrated portfolio reflects a high conviction in its investment choices, with each holding representing a significant portion of the fund's assets. This approach requires careful monitoring and risk management to ensure that the fund's overall portfolio remains aligned with its investment objectives.

What Products and Services Does FMIHX Offer?

• Invests in large-capitalization companies with a market cap above $5 billion at the time of initial purchase.
• Focuses on value stocks, seeking companies that are undervalued by the market.
• Trades on national securities exchanges or through national securities associations.
• May include foreign securities traded on national exchanges or associations.
• Operates as a non-diversified fund, concentrating investments in a smaller number of holdings.
• Conducts fundamental analysis to identify companies with strong financials and growth potential.
• Aims to provide long-term capital appreciation for its investors.

How Does FMIHX Make Money?

• Generates revenue through management fees charged as a percentage of assets under management (AUM).
• May earn income from dividends and interest on its investments.
• Profits from the appreciation of its stock holdings.
• Reinvests earnings to grow the fund's asset base and generate further returns.

What Industry Does FMIHX Operate In?

FMIHX operates within the asset management industry, a sector characterized by intense competition and evolving market dynamics. The industry is influenced by factors such as interest rates, economic growth, and investor sentiment. Trends include the increasing popularity of passive investing, the rise of fintech, and growing demand for sustainable investment options. FMIHX differentiates itself through its focus on large-cap value stocks and its non-diversified approach. Competitors include other asset management firms offering similar investment strategies, such as ARAAX (American Beacon Large Cap Value Fund R6), BRXAX (Bridgeway Large-Cap Value Fund), JAHYX (Janus Henderson Forty Fund Class Y), JHYAX (John Hancock Value Fund Class A), and JHYNX (John Hancock Value Fund Class R6).

Who Are FMIHX's Key Customers?

• Individual investors seeking long-term capital appreciation.
• Institutional investors, including pension funds, endowments, and foundations.
• Financial advisors and wealth managers who recommend the fund to their clients.
• Retirement savers looking to build a diversified portfolio.

Return on equity for FMI Large Cap Fund Investor Class stands at 8.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.7%, showing how much profit it generates from its asset base. FMIHX trades at a trailing price-to-earnings ratio of 9.50, below the Financial Services sector average of ~17.20x. A current ratio of 0.93 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 85.6%, the inverse of the P/E and a quick read on earnings relative to price.

FMI Large Cap Fund Investor Class's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.59 places it in the distress zone, a signal of elevated financial risk.

FMIHX Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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