362.46 USD
+9.72 (+2.76%)
362.46 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LPLA. LPLA was compared to 238 industry peers in the Capital Markets industry. LPLA has only an average score on both its financial health and profitability. LPLA is growing strongly while it is still valued neutral. This is a good combination! This makes LPLA very considerable 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
LPLA has a better Return On Assets (4.62%) than 68.49% of its industry peers.
The Return On Equity of LPLA (16.52%) is better than 80.67% of its industry peers.
LPLA's Return On Invested Capital of 10.03% is amongst the best of the industry. LPLA outperforms 86.13% of its industry peers.
LPLA had an Average Return On Invested Capital over the past 3 years of 15.44%. This is significantly above the industry average of 7.00%.
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
The Profit Margin of LPLA (5.35%) is worse than 67.65% of its industry peers.
In the last couple of years the Profit Margin of LPLA has declined.
LPLA has a Operating Margin of 12.49%. This is in the lower half of the industry: LPLA underperforms 64.29% of its industry peers.
In the last couple of years the Operating Margin of LPLA has declined.
LPLA has a Gross Margin of 98.94%. This is amongst the best in the industry. LPLA outperforms 99.16% 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 3.31 indicates that LPLA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.31, LPLA is in the better half of the industry, outperforming 76.89% of the companies in the same industry.
LPLA has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
LPLA has a Debt to Equity ratio of 1.51. This is in the lower half of the industry: LPLA underperforms 72.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.31 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
LPLA has a Current 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 Current ratio (2.38) than 77.73% 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.
Looking at the Quick ratio, with a value of 2.38, LPLA is in the better half of the industry, outperforming 77.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.26% over the past year.
The Earnings Per Share has been growing by 18.07% on average over the past years. This is quite good.
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
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.
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 Y23.28%
EPS Next 2Y20.14%
EPS Next 3Y20.71%
EPS Next 5Y10.6%
Revenue Next Year39.91%
Revenue Next 2Y31.52%
Revenue Next 3Y24.63%
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 18.97.
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 (26.39), we can say LPLA is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.22, LPLA is valued correctly.
LPLA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, LPLA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 15.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPLA is valued cheaply inside the industry as 82.35% 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.
The decent profitability rating of LPLA may justify a higher PE ratio.
A more expensive valuation may be justified as LPLA's earnings are expected to grow with 20.71% in the coming years.
PEG (NY)0.81
PEG (5Y)1.05
EPS Next 2Y20.14%
EPS Next 3Y20.71%
5. Dividend
5.1 Amount
LPLA has a yearly dividend return of 0.34%, which is pretty low.
LPLA's Dividend Yield is slightly below the industry average, which is at 6.43.
Compared to an average S&P500 Dividend Yield of 1.87, LPLA's dividend is way lower than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has a reliable track record.
LPLA has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of LPLA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP11.15%
EPS Next 2Y20.14%
EPS Next 3Y20.71%
362.46
+9.72 (+2.76%)
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 Cap29.01B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts81.82
Price Target442.76 (22.15%)
Short Float %2.89%
Short Ratio3.02
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-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)4.61%
PT rev (3m)-1.7%
EPS NQ rev (1m)0.71%
EPS NQ rev (3m)5.55%
EPS NY rev (1m)2.87%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)8.7%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 15.22 | ||
| P/S | 1.86 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.5 |
EPS(TTM)19.11
EY5.27%
EPS(NY)23.81
Fwd EY6.57%
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)1.05
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 Y23.28%
EPS Next 2Y20.14%
EPS Next 3Y20.71%
EPS Next 5Y10.6%
Revenue 1Y (TTM)35.19%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%47.85%
Revenue Next Year39.91%
Revenue Next 2Y31.52%
Revenue Next 3Y24.63%
Revenue Next 5Y19.26%
EBIT growth 1Y18.72%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year36.73%
EBIT Next 3Y25.63%
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 23.28% 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%.