LPL FINANCIAL HOLDINGS INC (LPLA)
US50212V1008 - Common Stock
LPLA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 220 industry peers in the Capital Markets industry. LPLA scores excellent on profitability, but there are some minor concerns on its financial health. LPLA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
LPLA had positive earnings in the past year.
In the past year LPLA had a positive cash flow from operations.
In the past 5 years LPLA has always been profitable.
In the past 5 years LPLA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.42%, LPLA belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
LPLA's Return On Equity of 36.27% is amongst the best of the industry. LPLA outperforms 97.23% of its industry peers.
LPLA has a better Return On Invested Capital (13.92%) than 90.32% of its industry peers.
LPLA had an Average Return On Invested Capital over the past 3 years of 14.97%. This is significantly above the industry average of 7.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 36.27% | ||
| ROIC | 13.92% |
ROA(3y)8.31%
ROA(5y)8.33%
ROE(3y)39.28%
ROE(5y)41.69%
ROIC(3y)14.97%
ROIC(5y)14.71%
1.3 Margins
Looking at the Profit Margin, with a value of 8.73%, LPLA is doing worse than 64.06% of the companies in the same industry.
LPLA's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 14.23%, LPLA is not doing good in the industry: 66.82% of the companies in the same industry are doing better.
LPLA's Operating Margin has improved in the last couple of years.
LPLA's Gross Margin of 98.97% is amongst the best of the industry. LPLA outperforms 98.62% of its industry peers.
LPLA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.23% | ||
| PM (TTM) | 8.73% | ||
| GM | 98.97% |
OM growth 3Y9.68%
OM growth 5Y3.52%
PM growth 3Y9.63%
PM growth 5Y4.6%
GM growth 3Y0.05%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
The number of shares outstanding for LPLA has been reduced compared to 1 year ago.
LPLA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, LPLA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.91 indicates that LPLA is not in any danger for bankruptcy at the moment.
LPLA has a Altman-Z score of 3.91. This is amongst the best in the industry. LPLA outperforms 82.95% of its industry peers.
The Debt to FCF ratio of LPLA is 47.37, which is on the high side as it means it would take LPLA, 47.37 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 47.37, LPLA is doing worse than 61.75% of the companies in the same industry.
A Debt/Equity ratio of 1.64 is on the high side and indicates that LPLA has dependencies on debt financing.
LPLA has a worse Debt to Equity ratio (1.64) than 73.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 47.37 | ||
| Altman-Z | 3.91 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
LPLA has a Current Ratio of 2.04. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
LPLA has a better Current ratio (2.04) than 68.66% of its industry peers.
LPLA has a Quick Ratio of 2.04. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.04, LPLA is doing good in the industry, outperforming 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The earnings per share for LPLA have decreased by -3.79% in the last year.
Measured over the past years, LPLA shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.51% on average per year.
Looking at the last year, LPLA shows a quite strong growth in Revenue. The Revenue has grown by 18.21% in the last year.
The Revenue has been growing by 14.14% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.79%
EPS 3Y34.46%
EPS 5Y24.51%
EPS Q2Q%11.23%
Revenue 1Y (TTM)18.21%
Revenue growth 3Y19.63%
Revenue growth 5Y14.14%
Sales Q2Q%22.06%
3.2 Future
The Earnings Per Share is expected to grow by 9.59% on average over the next years. This is quite good.
Based on estimates for the next years, LPLA will show a quite strong growth in Revenue. The Revenue will grow by 9.18% on average per year.
EPS Next Y5.09%
EPS Next 2Y11%
EPS Next 3Y12.82%
EPS Next 5Y9.59%
Revenue Next Year20.48%
Revenue Next 2Y18.78%
Revenue Next 3Y16.4%
Revenue Next 5Y9.18%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.81, LPLA is valued on the expensive side.
62.21% of the companies in the same industry are cheaper than LPLA, based on the Price/Earnings ratio.
LPLA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 16.97, the valuation of LPLA can be described as correct.
LPLA's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of LPLA to the average of the S&P500 Index (22.83), we can say LPLA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 16.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPLA is valued cheaper than 81.57% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LPLA indicates a slightly more expensive valuation: LPLA is more expensive than 65.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 255.83 | ||
| EV/EBITDA | 12.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LPLA does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of LPLA may justify a higher PE ratio.
LPLA's earnings are expected to grow with 12.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.09
PEG (5Y)0.85
EPS Next 2Y11%
EPS Next 3Y12.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, LPLA is not a good candidate for dividend investing.
LPLA's Dividend Yield is slightly below the industry average, which is at 9.13.
With a Dividend Yield of 0.37, LPLA pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
The dividend of LPLA has a limited annual growth rate of 3.46%.
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)3.46%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
LPLA pays out 8.94% of its income as dividend. This is a sustainable payout ratio.
The dividend of LPLA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.94%
EPS Next 2Y11%
EPS Next 3Y12.82%
LPL FINANCIAL HOLDINGS INC
NASDAQ:LPLA (12/20/2024, 8:22:48 PM)
After market: 327.93 0 (0%)327.93
+0.24 (+0.07%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners97.59%
Inst Owner Change0.28%
Ins Owners0.52%
Ins Owner Change-0.15%
Market Cap24.56B
Analysts80
Price Target322.9 (-1.53%)
Short Float %1.02%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Dividend Growth(5Y)3.46%
DP8.94%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.32%
Min EPS beat(2)2.73%
Max EPS beat(2)9.9%
EPS beat(4)4
Avg EPS beat(4)5.71%
Min EPS beat(4)1.79%
Max EPS beat(4)9.9%
EPS beat(8)7
Avg EPS beat(8)3.74%
EPS beat(12)11
Avg EPS beat(12)5.17%
EPS beat(16)15
Avg EPS beat(16)6.34%
Revenue beat(2)0
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)-0.38%
Revenue beat(4)2
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)2.56%
Revenue beat(8)3
Avg Revenue beat(8)-0.1%
Revenue beat(12)6
Avg Revenue beat(12)1.63%
Revenue beat(16)10
Avg Revenue beat(16)2.6%
PT rev (1m)13.35%
PT rev (3m)10.95%
EPS NQ rev (1m)-0.93%
EPS NQ rev (3m)-4.27%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)0.79%
Revenue NQ rev (3m)4.46%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.81 | ||
| Fwd PE | 16.97 | ||
| P/S | 2.13 | ||
| P/FCF | 255.83 | ||
| P/OCF | 41 | ||
| P/B | 8.86 | ||
| P/tB | 202.72 | ||
| EV/EBITDA | 12.83 |
EPS(TTM)15.76
EY4.81%
EPS(NY)19.32
Fwd EY5.89%
FCF(TTM)1.28
FCFY0.39%
OCF(TTM)8
OCFY2.44%
SpS153.8
BVpS37.02
TBVpS1.62
PEG (NY)4.09
PEG (5Y)0.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 36.27% | ||
| ROCE | 18.58% | ||
| ROIC | 13.92% | ||
| ROICexc | 20.59% | ||
| ROICexgc | 60.57% | ||
| OM | 14.23% | ||
| PM (TTM) | 8.73% | ||
| GM | 98.97% | ||
| FCFM | 0.83% |
ROA(3y)8.31%
ROA(5y)8.33%
ROE(3y)39.28%
ROE(5y)41.69%
ROIC(3y)14.97%
ROIC(5y)14.71%
ROICexc(3y)26.13%
ROICexc(5y)24.76%
ROICexgc(3y)615.87%
ROICexgc(5y)466.89%
ROCE(3y)19.98%
ROCE(5y)19.86%
ROICexcg growth 3Y-29.21%
ROICexcg growth 5Y-18.68%
ROICexc growth 3Y8.1%
ROICexc growth 5Y4%
OM growth 3Y9.68%
OM growth 5Y3.52%
PM growth 3Y9.63%
PM growth 5Y4.6%
GM growth 3Y0.05%
GM growth 5Y0.03%
F-Score4
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 47.37 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 123.98% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | 7.49 | ||
| Cash Conversion | 29.3% | ||
| Profit Quality | 9.55% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 3.91 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)104.72%
Cap/Depr(5y)99.81%
Cap/Sales(3y)3.46%
Cap/Sales(5y)3.16%
Profit Quality(3y)85.2%
Profit Quality(5y)94.67%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.79%
EPS 3Y34.46%
EPS 5Y24.51%
EPS Q2Q%11.23%
EPS Next Y5.09%
EPS Next 2Y11%
EPS Next 3Y12.82%
EPS Next 5Y9.59%
Revenue 1Y (TTM)18.21%
Revenue growth 3Y19.63%
Revenue growth 5Y14.14%
Sales Q2Q%22.06%
Revenue Next Year20.48%
Revenue Next 2Y18.78%
Revenue Next 3Y16.4%
Revenue Next 5Y9.18%
EBIT growth 1Y-6.88%
EBIT growth 3Y31.21%
EBIT growth 5Y18.16%
EBIT Next Year27.52%
EBIT Next 3Y19.59%
EBIT Next 5Y13.41%
FCF growth 1Y-95.36%
FCF growth 3Y-44.35%
FCF growth 5Y-23.64%
OCF growth 1Y-74.79%
OCF growth 3Y-13.42%
OCF growth 5Y-2.49%