387.45 USD
+0.46 (+0.12%)
387.45 USD
0 (0%)
Overall LPLA gets a fundamental rating of 6 out of 10. We evaluated LPLA against 237 industry peers in the Capital Markets industry. LPLA has an average financial health and profitability rating. LPLA is growing strongly while it is still valued neutral. This is a good combination! With these ratings, LPLA could be worth investigating further 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.
LPLA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
LPLA has a Return On Assets of 4.62%. This is in the better half of the industry: LPLA outperforms 68.35% of its industry peers.
LPLA has a better Return On Equity (16.52%) than 80.59% of its industry peers.
LPLA has a better Return On Invested Capital (10.03%) than 86.08% 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
LPLA has a Profit Margin of 5.35%. This is in the lower half of the industry: LPLA underperforms 67.93% of its industry peers.
LPLA's Profit Margin has declined in the last couple of years.
The Operating Margin of LPLA (12.49%) is worse than 64.56% 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 98.94%, LPLA belongs to the top of the industry, outperforming 99.16% of the companies in the same industry.
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.
LPLA has a worse debt/assets ratio than last year.
2.2 Solvency
LPLA has an Altman-Z score of 3.41. 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 3.41, LPLA is in the better half of the industry, outperforming 77.22% of the companies in the same industry.
A Debt/Equity ratio of 1.51 is on the high side and indicates that LPLA has dependencies on debt financing.
LPLA has a worse Debt to Equity ratio (1.51) than 72.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.41 |
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 77.64% of its industry peers.
A Quick Ratio of 2.38 indicates that LPLA has no problem at all paying 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.
Looking at the last year, LPLA shows a very strong growth in Revenue. The Revenue has grown by 35.19%.
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.
Based on estimates for the next years, LPLA will show a quite strong growth in Revenue. The Revenue will grow by 19.26% on average per year.
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
Based on the Price/Earnings ratio of 20.27, the valuation of LPLA can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of LPLA is on the same level as its industry peers.
LPLA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
LPLA is valuated correctly with a Price/Forward Earnings ratio of 16.27.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LPLA is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of LPLA to the average of the S&P500 Index (23.96), we can say LPLA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPLA is valued cheaper than 80.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.28 |
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.
LPLA's earnings are expected to grow with 20.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)1.12
EPS Next 2Y20.14%
EPS Next 3Y20.71%
5. Dividend
5.1 Amount
LPLA has a yearly dividend return of 0.33%, which is pretty low.
Compared to an average industry Dividend Yield of 8.31, LPLA is paying slightly less dividend.
With a Dividend Yield of 0.33, LPLA pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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 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%
387.45
+0.46 (+0.12%)
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-0.42%
Market Cap31.01B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts81.82
Price Target442.76 (14.28%)
Short Float %3.55%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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)-2.43%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)4.4%
EPS NY rev (1m)2.87%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)9.22%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)6.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 16.27 | ||
| P/S | 1.99 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 6.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.28 |
EPS(TTM)19.11
EY4.93%
EPS(NY)23.81
Fwd EY6.15%
FCF(TTM)-24.23
FCFYN/A
OCF(TTM)-17.18
OCFYN/A
SpS194.52
BVpS63.01
TBVpS-11.68
PEG (NY)0.87
PEG (5Y)1.12
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 | 3.41 |
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%.