348.4 USD
+0.21 (+0.06%)
348.4 USD
0 (0%)
Taking everything into account, LPLA scores 6 out of 10 in our fundamental rating. LPLA was compared to 237 industry peers in the Capital Markets industry. Both the profitability and the financial health of LPLA get a neutral evaluation. Nothing too spectacular is happening here. LPLA is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make LPLA a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
LPLA had positive earnings in the past year.
In the past year LPLA has reported a negative cash flow from operations.
LPLA had positive earnings in each of the past 5 years.
Each year in the past 5 years LPLA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.62%, LPLA is in the better half of the industry, outperforming 68.78% of the companies in the same industry.
With an excellent Return On Equity value of 16.52%, LPLA belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
LPLA's Return On Invested Capital of 10.03% is amongst the best of the industry. LPLA outperforms 86.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LPLA is significantly above the industry average of 6.96%.
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 has a worse Profit Margin (5.35%) than 67.93% of its industry peers.
LPLA's Profit Margin has declined in the last couple of years.
LPLA has a worse Operating Margin (12.49%) than 64.98% of its industry peers.
In the last couple of years the Operating Margin of LPLA has declined.
With an excellent Gross Margin value of 98.94%, LPLA belongs to the best of the industry, outperforming 99.16% of the companies in the same industry.
LPLA's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, LPLA has a worse debt to assets ratio.
2.2 Solvency
LPLA has an Altman-Z score of 3.26. This indicates that LPLA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LPLA (3.26) is better than 77.22% 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.
The Debt to Equity ratio of LPLA (1.51) is worse than 72.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.26 |
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's Current ratio of 2.38 is fine compared to the rest of the industry. LPLA outperforms 77.64% 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 77.64% 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.
The Earnings Per Share has been growing by 18.07% on average over the past years. This is quite good.
The Revenue has grown by 35.19% in the past year. This is a very strong growth!
LPLA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.10% yearly.
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
The Earnings Per Share is expected to grow by 10.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 19.26% on average over the next years. This is quite good.
EPS Next Y19.85%
EPS Next 2Y19.52%
EPS Next 3Y20.72%
EPS Next 5Y10.6%
Revenue Next Year38.97%
Revenue Next 2Y31.72%
Revenue Next 3Y24.75%
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
With a Price/Earnings ratio of 18.23, LPLA is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of LPLA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.98. LPLA is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 14.78, the valuation of LPLA can be described as correct.
LPLA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.79. LPLA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.23 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPLA is valued cheaply inside the industry as 82.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.04 |
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.
LPLA's earnings are expected to grow with 20.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)1.01
EPS Next 2Y19.52%
EPS Next 3Y20.72%
5. Dividend
5.1 Amount
LPLA has a yearly dividend return of 0.35%, which is pretty low.
LPLA's Dividend Yield is slightly below the industry average, which is at 8.60.
With a Dividend Yield of 0.35, LPLA pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
The dividend of LPLA has a limited annual growth rate of 3.76%.
LPLA has been paying a dividend for at least 10 years, so it has 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
LPLA pays out 11.15% of its income as dividend. This is a sustainable payout ratio.
LPLA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP11.15%
EPS Next 2Y19.52%
EPS Next 3Y20.72%
348.4
+0.21 (+0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change-0.71%
Ins Owners0.39%
Ins Owner Change-0.55%
Market Cap27.87B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts80.87
Price Target439.62 (26.18%)
Short Float %3.02%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend1.2
Dividend Growth(5Y)3.76%
DP11.15%
Div Incr Years0
Div Non Decr Years11
Ex-Date
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)-0.61%
PT rev (3m)-3.19%
EPS NQ rev (1m)6.89%
EPS NQ rev (3m)3.85%
EPS NY rev (1m)2.83%
EPS NY rev (3m)2%
Revenue NQ rev (1m)4.92%
Revenue NQ rev (3m)15.81%
Revenue NY rev (1m)2.48%
Revenue NY rev (3m)6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.23 | ||
| Fwd PE | 14.78 | ||
| P/S | 1.79 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.04 |
EPS(TTM)19.11
EY5.49%
EPS(NY)23.57
Fwd EY6.76%
FCF(TTM)-24.24
FCFYN/A
OCF(TTM)-17.19
OCFYN/A
SpS194.62
BVpS63.04
TBVpS-11.68
PEG (NY)0.92
PEG (5Y)1.01
Graham Number164.63
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 | 3.26 |
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 Y19.85%
EPS Next 2Y19.52%
EPS Next 3Y20.72%
EPS Next 5Y10.6%
Revenue 1Y (TTM)35.19%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%47.85%
Revenue Next Year38.97%
Revenue Next 2Y31.72%
Revenue Next 3Y24.75%
Revenue Next 5Y19.26%
EBIT growth 1Y18.72%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year35.15%
EBIT Next 3Y26.74%
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.
Can you provide the valuation status for LPL FINANCIAL HOLDINGS INC?
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 is the earnings growth outlook for LPL FINANCIAL HOLDINGS INC?
The Earnings per Share (EPS) of LPL FINANCIAL HOLDINGS INC (LPLA) is expected to grow by 19.85% in the next year.
Can you provide the dividend sustainability for LPLA stock?
The dividend rating of LPL FINANCIAL HOLDINGS INC (LPLA) is 5 / 10 and the dividend payout ratio is 11.15%.