LPL FINANCIAL HOLDINGS INC (LPLA) Stock Fundamental Analysis
USA - NASDAQ:LPLA - US50212V1008 - Common Stock
373.5 USD
+0.83 (+0.22%)
373.5 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. While LPLA belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. LPLA is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make LPLA suitable for growth investing!
1. Profitability
1.1 Basic Checks
LPLA had positive earnings in the past year.
LPLA had a positive 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
LPLA has a Return On Assets of 6.40%. This is in the better half of the industry: LPLA outperforms 77.64% of its industry peers.
LPLA's Return On Equity of 22.03% is amongst the best of the industry. LPLA outperforms 88.61% of its industry peers.
LPLA has a better Return On Invested Capital (10.46%) than 85.23% 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 7.63%.
The last Return On Invested Capital (10.46%) for LPLA is well below the 3 year average (15.44%), which needs to be investigated, but indicates that LPLA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 22.03% | ||
| ROIC | 10.46% |
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 (7.91%) than 62.03% of its industry peers.
In the last couple of years the Profit Margin of LPLA has declined.
LPLA has a worse Operating Margin (13.92%) than 64.13% 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 98.92%, LPLA belongs to the top 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 | 13.92% | ||
| PM (TTM) | 7.91% | ||
| GM | 98.93% |
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
Compared to 1 year ago, LPLA has about the same amount of shares outstanding.
LPLA has less shares outstanding than it did 5 years ago.
LPLA has a worse debt/assets ratio than last year.
2.2 Solvency
LPLA has an Altman-Z score of 3.55. This indicates that LPLA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.55, LPLA is in the better half of the industry, outperforming 78.48% of the companies in the same industry.
A Debt/Equity ratio of 1.44 is on the high side and indicates that LPLA has dependencies on debt financing.
With a Debt to Equity ratio value of 1.44, LPLA is not doing good in the industry: 69.20% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.55 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.05 indicates that LPLA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.05, LPLA belongs to the top of the industry, outperforming 80.59% of the companies in the same industry.
LPLA has a Quick Ratio of 3.05. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
LPLA has a better Quick ratio (3.05) than 80.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 3.05 |
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%.
The Revenue has been growing by 17.10% on average over the past years. This is quite good.
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
LPLA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.60% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 19.54, the valuation of LPLA can be described as rather expensive.
LPLA's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.83, LPLA is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.85, which indicates a correct valuation of LPLA.
The rest of the industry has a similar Price/Forward Earnings ratio as LPLA.
LPLA is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 15.85 |
4.2 Price Multiples
83.54% of the companies in the same industry are more expensive than LPLA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.57 |
4.3 Compensation for Growth
The 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 20.72% in the coming years.
PEG (NY)0.98
PEG (5Y)1.08
EPS Next 2Y19.52%
EPS Next 3Y20.72%
5. Dividend
5.1 Amount
With a yearly dividend of 0.32%, LPLA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.39, LPLA is paying slightly less dividend.
With a Dividend Yield of 0.32, LPLA pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
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 8.17% 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.
DP8.17%
EPS Next 2Y19.52%
EPS Next 3Y20.72%
373.5
+0.83 (+0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change-0.15%
Ins Owners0.39%
Ins Owner Change0.11%
Market Cap29.88B
Revenue(TTM)15.57B
Net Income(TTM)1.12B
Analysts80.87
Price Target423.23 (13.31%)
Short Float %2.71%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend1.2
Dividend Growth(5Y)3.76%
DP8.17%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.36%
Min EPS beat(2)4.59%
Max EPS beat(2)8.12%
EPS beat(4)4
Avg EPS beat(4)7.08%
Min EPS beat(4)4.59%
Max EPS beat(4)9.9%
EPS beat(8)8
Avg EPS beat(8)5.48%
EPS beat(12)11
Avg EPS beat(12)4.74%
EPS beat(16)15
Avg EPS beat(16)5.1%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)2.92%
Revenue beat(8)4
Avg Revenue beat(8)0.5%
Revenue beat(12)5
Avg Revenue beat(12)0.05%
Revenue beat(16)9
Avg Revenue beat(16)2.18%
PT rev (1m)-6.04%
PT rev (3m)-5.21%
EPS NQ rev (1m)-2.33%
EPS NQ rev (3m)-4.78%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)9.73%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)5.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.54 | ||
| Fwd PE | 15.85 | ||
| P/S | 2.12 | ||
| P/FCF | N/A | ||
| P/OCF | 53.01 | ||
| P/B | 5.89 | ||
| P/tB | 24.49 | ||
| EV/EBITDA | 12.57 |
EPS(TTM)19.11
EY5.12%
EPS(NY)23.57
Fwd EY6.31%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)7.05
OCFY1.89%
SpS176.57
BVpS63.43
TBVpS15.25
PEG (NY)0.98
PEG (5Y)1.08
Graham Number165.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 22.03% | ||
| ROCE | 13.96% | ||
| ROIC | 10.46% | ||
| ROICexc | 17.77% | ||
| ROICexgc | 49.87% | ||
| OM | 13.92% | ||
| PM (TTM) | 7.91% | ||
| GM | 98.93% | ||
| 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-Score3
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 108.67% | ||
| Cap/Sales | 4.03% | ||
| Interest Coverage | 6.36 | ||
| Cash Conversion | 22.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.05 | ||
| Quick Ratio | 3.05 | ||
| Altman-Z | 3.55 |
F-Score3
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 1Y24.53%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year35.15%
EBIT Next 3Y26.74%
EBIT Next 5Y18.07%
FCF growth 1Y-100.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-73.72%
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 7 / 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 8.17%.