360.335 USD
-2.03 (-0.56%)
Taking everything into account, LPLA scores 6 out of 10 in our fundamental rating. LPLA was compared to 235 industry peers in the Capital Markets industry. LPLA has an average financial health and profitability rating. LPLA is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make LPLA a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year LPLA was profitable.
LPLA had a negative operating cash flow in the past year.
Each year in the past 5 years LPLA has been profitable.
In the past 5 years LPLA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of LPLA (4.62%) is better than 69.36% of its industry peers.
LPLA has a better Return On Equity (16.52%) than 80.85% of its industry peers.
With an excellent Return On Invested Capital value of 10.03%, LPLA belongs to the best of the industry, outperforming 85.53% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for LPLA is significantly above the industry average of 7.14%.
The 3 year average ROIC (15.44%) for LPLA is well above the current ROIC(10.03%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 16.52% | ||
| ROIC | 10.03% |
ROA(3y)9.04%
ROA(5y)8.01%
ROE(3y)42.14%
ROE(5y)37.98%
ROIC(3y)15.44%
ROIC(5y)14.04%
1.3 Margins
LPLA's Profit Margin of 5.35% is on the low side compared to the rest of the industry. LPLA is outperformed by 68.09% of its industry peers.
In the last couple of years the Profit Margin of LPLA has declined.
The Operating Margin of LPLA (12.49%) is worse than 63.83% of its industry peers.
LPLA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 98.94%, LPLA belongs to the top of the industry, outperforming 99.15% of the companies in the same industry.
In the last couple of years the Gross Margin of LPLA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.49% | ||
| PM (TTM) | 5.35% | ||
| GM | 98.94% |
OM growth 3Y10.2%
OM growth 5Y-2.12%
PM growth 3Y12.79%
PM growth 5Y-3%
GM growth 3Y0.03%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
The number of shares outstanding for LPLA remains at a similar level compared to 1 year ago.
The number of shares outstanding for LPLA has been reduced compared to 5 years ago.
The debt/assets ratio for LPLA is higher compared to a year ago.
2.2 Solvency
LPLA has an Altman-Z score of 3.31. This indicates that LPLA is financially healthy and has little risk of bankruptcy at the moment.
LPLA has a better Altman-Z score (3.31) than 77.87% of its industry peers.
A Debt/Equity ratio of 1.51 is on the high side and indicates that LPLA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.51, LPLA is doing worse than 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.31 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.38 indicates that LPLA has no problem at all paying its short term obligations.
LPLA has a Current ratio of 2.38. This is in the better half of the industry: LPLA outperforms 77.87% of its industry peers.
LPLA has a Quick Ratio of 2.38. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
LPLA has a better Quick ratio (2.38) than 77.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
LPLA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.26%, which is quite impressive.
LPLA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.07% yearly.
Looking at the last year, LPLA shows a very strong growth in Revenue. The Revenue has grown by 35.19%.
Measured over the past years, LPLA shows a quite strong growth in Revenue. The Revenue has been growing by 17.10% on average per year.
EPS 1Y (TTM)21.26%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%25%
Revenue 1Y (TTM)35.19%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%47.85%
3.2 Future
Based on estimates for the next years, LPLA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.60% on average per year.
The Revenue is expected to grow by 19.26% on average over the next years. This is quite good.
EPS Next Y23.4%
EPS Next 2Y20.19%
EPS Next 3Y20.47%
EPS Next 5Y10.6%
Revenue Next Year40.47%
Revenue Next 2Y31.96%
Revenue Next 3Y25.02%
Revenue Next 5Y19.26%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.86, which indicates a rather expensive current valuation of LPLA.
Compared to the rest of the industry, the Price/Earnings ratio of LPLA is on the same level as its industry peers.
When comparing the Price/Earnings ratio of LPLA to the average of the S&P500 Index (27.00), we can say LPLA is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.12 indicates a correct valuation of LPLA.
LPLA's Price/Forward Earnings is on the same level as the industry average.
LPLA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.86 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPLA is valued cheaply inside the industry as 83.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.5 |
4.3 Compensation for Growth
LPLA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
LPLA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as LPLA's earnings are expected to grow with 20.47% in the coming years.
PEG (NY)0.81
PEG (5Y)1.04
EPS Next 2Y20.19%
EPS Next 3Y20.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.34%, LPLA is not a good candidate for dividend investing.
LPLA's Dividend Yield is slightly below the industry average, which is at 6.39.
With a Dividend Yield of 0.34, LPLA pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
5.2 History
The dividend of LPLA has a limited annual growth rate of 3.76%.
LPLA has paid a dividend for at least 10 years, which is a reliable track record.
LPLA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.76%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
11.15% of the earnings are spent on dividend by LPLA. This is a low number and sustainable payout ratio.
LPLA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP11.15%
EPS Next 2Y20.19%
EPS Next 3Y20.47%
NASDAQ:LPLA (1/9/2026, 2:36:22 PM)
360.335
-2.03 (-0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners101.29%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner Change-0.7%
Market Cap28.84B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts81.82
Price Target451.78 (25.38%)
Short Float %3.1%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Yearly Dividend1.2
Dividend Growth(5Y)3.76%
DP11.15%
Div Incr Years0
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.13%
Min EPS beat(2)4.59%
Max EPS beat(2)13.68%
EPS beat(4)4
Avg EPS beat(4)8.02%
Min EPS beat(4)4.59%
Max EPS beat(4)13.68%
EPS beat(8)8
Avg EPS beat(8)6.87%
EPS beat(12)11
Avg EPS beat(12)5.17%
EPS beat(16)15
Avg EPS beat(16)5.89%
Revenue beat(2)2
Avg Revenue beat(2)2.94%
Min Revenue beat(2)0.76%
Max Revenue beat(2)5.13%
Revenue beat(4)3
Avg Revenue beat(4)2.11%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)5.13%
Revenue beat(8)5
Avg Revenue beat(8)1.32%
Revenue beat(12)6
Avg Revenue beat(12)0.64%
Revenue beat(16)9
Avg Revenue beat(16)1.75%
PT rev (1m)2.76%
PT rev (3m)2.13%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)5.45%
EPS NY rev (1m)0.1%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)1.16%
Revenue NQ rev (3m)8.7%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.86 | ||
| Fwd PE | 15.12 | ||
| P/S | 1.85 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.5 |
EPS(TTM)19.11
EY5.3%
EPS(NY)23.83
Fwd EY6.61%
FCF(TTM)-24.23
FCFYN/A
OCF(TTM)-17.18
OCFYN/A
SpS194.52
BVpS63.01
TBVpS-11.68
PEG (NY)0.81
PEG (5Y)1.04
Graham Number164.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.62% | ||
| ROE | 16.52% | ||
| ROCE | 13.39% | ||
| ROIC | 10.03% | ||
| ROICexc | 12.2% | ||
| ROICexgc | 33.67% | ||
| OM | 12.49% | ||
| PM (TTM) | 5.35% | ||
| GM | 98.94% | ||
| FCFM | N/A |
ROA(3y)9.04%
ROA(5y)8.01%
ROE(3y)42.14%
ROE(5y)37.98%
ROIC(3y)15.44%
ROIC(5y)14.04%
ROICexc(3y)25.8%
ROICexc(5y)23.26%
ROICexgc(3y)599.08%
ROICexgc(5y)438.7%
ROCE(3y)20.61%
ROCE(5y)18.75%
ROICexgc growth 3Y-20.71%
ROICexgc growth 5Y-23.61%
ROICexc growth 3Y-1.8%
ROICexc growth 5Y-7.03%
OM growth 3Y10.2%
OM growth 5Y-2.12%
PM growth 3Y12.79%
PM growth 5Y-3%
GM growth 3Y0.03%
GM growth 5Y0.02%
F-Score2
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 97.74% | ||
| Cap/Sales | 3.62% | ||
| Interest Coverage | 5.64 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 3.31 |
F-Score2
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)115.77%
Cap/Depr(5y)105.75%
Cap/Sales(3y)4.04%
Cap/Sales(5y)3.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.26%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%25%
EPS Next Y23.4%
EPS Next 2Y20.19%
EPS Next 3Y20.47%
EPS Next 5Y10.6%
Revenue 1Y (TTM)35.19%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%47.85%
Revenue Next Year40.47%
Revenue Next 2Y31.96%
Revenue Next 3Y25.02%
Revenue Next 5Y19.26%
EBIT growth 1Y18.72%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year39.34%
EBIT Next 3Y26.57%
EBIT Next 5Y18.07%
FCF growth 1Y-987.72%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-810.69%
OCF growth 3Y-15.07%
OCF growth 5Y-14.95%
LPL FINANCIAL HOLDINGS INC / LPLA FAQ
What is the fundamental rating for LPLA stock?
ChartMill assigns a fundamental rating of 6 / 10 to LPLA.
What is the valuation status of LPL FINANCIAL HOLDINGS INC (LPLA) stock?
ChartMill assigns a valuation rating of 5 / 10 to LPL FINANCIAL HOLDINGS INC (LPLA). This can be considered as Fairly Valued.
What is the profitability of LPLA stock?
LPL FINANCIAL HOLDINGS INC (LPLA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of LPL FINANCIAL HOLDINGS INC (LPLA) stock?
The Price/Earnings (PE) ratio for LPL FINANCIAL HOLDINGS INC (LPLA) is 18.86 and the Price/Book (PB) ratio is 5.72.
How financially healthy is LPL FINANCIAL HOLDINGS INC?
The financial health rating of LPL FINANCIAL HOLDINGS INC (LPLA) is 5 / 10.