355.5 USD
-4.25 (-1.18%)
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. Both the profitability and the financial health of LPLA get a neutral evaluation. Nothing too spectacular is happening here. 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
LPLA had positive earnings in the past year.
LPLA had a negative operating cash flow in the past year.
LPLA had positive earnings in each of the past 5 years.
LPLA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LPLA (4.62%) is better than 69.79% of its industry peers.
LPLA has a Return On Equity of 16.52%. This is amongst the best in the industry. LPLA outperforms 81.28% of its industry peers.
LPLA has a better Return On Invested Capital (10.03%) than 85.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LPLA is significantly above the industry average of 7.07%.
The last Return On Invested Capital (10.03%) 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 | 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
Looking at the Profit Margin, with a value of 5.35%, LPLA is doing worse than 67.66% of the companies in the same industry.
In the last couple of years the Profit Margin of LPLA has declined.
The Operating Margin of LPLA (12.49%) is worse than 63.40% of its industry peers.
LPLA's Operating Margin has declined in the last couple of years.
LPLA has a Gross Margin of 98.94%. This is amongst the best in the industry. LPLA outperforms 99.15% of its industry peers.
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
Compared to 1 year ago, LPLA has about the same amount of shares outstanding.
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
An Altman-Z score of 3.30 indicates that LPLA is not in any danger for bankruptcy at the moment.
The Altman-Z score of LPLA (3.30) is better than 77.02% 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 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.3 |
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 better Current ratio (2.38) than 77.87% of its industry peers.
A Quick Ratio of 2.38 indicates that LPLA has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.38, LPLA is doing good in the industry, outperforming 77.87% of the companies in the same industry.
| 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!
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
The Earnings Per Share is expected to grow by 10.60% on average over the next years. This is quite good.
LPLA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.26% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
LPLA is valuated rather expensively with a Price/Earnings ratio of 18.60.
LPLA's Price/Earnings ratio is in line with the industry average.
LPLA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.77.
A Price/Forward Earnings ratio of 14.92 indicates a correct valuation of LPLA.
The rest of the industry has a similar Price/Forward Earnings ratio as LPLA.
LPLA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 14.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPLA indicates a rather cheap valuation: LPLA is cheaper than 82.55% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.41 |
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)0.79
PEG (5Y)1.03
EPS Next 2Y20.19%
EPS Next 3Y20.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.32%, LPLA is not a good candidate for dividend investing.
LPLA's Dividend Yield is slightly below the industry average, which is at 6.65.
With a Dividend Yield of 0.32, LPLA pays less dividend than the S&P500 average, which is at 2.00.
| 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 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
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 2Y20.19%
EPS Next 3Y20.47%
NASDAQ:LPLA (12/31/2025, 9:40:44 AM)
355.5
-4.25 (-1.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners101.12%
Inst Owner Change-0.69%
Ins Owners0.38%
Ins Owner Change-0.72%
Market Cap28.45B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts81.82
Price Target451.78 (27.08%)
Short Float %3.1%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
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)2.76%
PT rev (3m)0.3%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)4.82%
EPS NY rev (1m)2.97%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)8.7%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.6 | ||
| Fwd PE | 14.92 | ||
| P/S | 1.83 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.41 |
EPS(TTM)19.11
EY5.38%
EPS(NY)23.83
Fwd EY6.7%
FCF(TTM)-24.23
FCFYN/A
OCF(TTM)-17.18
OCFYN/A
SpS194.52
BVpS63.01
TBVpS-11.68
PEG (NY)0.79
PEG (5Y)1.03
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 | 3.3 |
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.
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 23.4% 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%.