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LPL FINANCIAL HOLDINGS INC (LPLA) Stock Fundamental Analysis

USA - NASDAQ:LPLA - US50212V1008 - Common Stock

338.94 USD
-11.7 (-3.34%)
Last: 9/15/2025, 2:53:02 PM
Fundamental Rating

6

LPLA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. LPLA has an excellent profitability rating, but there are some minor concerns on its financial health. LPLA has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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7

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.
In the past 5 years LPLA has always been profitable.
Each year in the past 5 years LPLA had a positive operating cash flow.
LPLA Yearly Net Income VS EBIT VS OCF VS FCFLPLA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

1.2 Ratios

LPLA has a better Return On Assets (6.40%) than 78.48% of its industry peers.
Looking at the Return On Equity, with a value of 22.03%, LPLA belongs to the top of the industry, outperforming 88.61% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.46%, LPLA belongs to the top of the industry, outperforming 84.81% of the companies in the same industry.
LPLA had an Average Return On Invested Capital over the past 3 years of 15.44%. This is significantly above the industry average of 7.61%.
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 RankSector 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%
LPLA Yearly ROA, ROE, ROICLPLA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

The Profit Margin of LPLA (7.91%) is worse than 62.87% of its industry peers.
LPLA's Profit Margin has declined in the last couple of years.
LPLA's Operating Margin of 13.92% is on the low side compared to the rest of the industry. LPLA is outperformed by 65.82% 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 RankSector 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%
LPLA Yearly Profit, Operating, Gross MarginsLPLA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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5

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.
Compared to 1 year ago, LPLA has a worse debt to assets ratio.
LPLA Yearly Shares OutstandingLPLA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
LPLA Yearly Total Debt VS Total AssetsLPLA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 3.46 indicates that LPLA is not in any danger for bankruptcy at the moment.
LPLA has a better Altman-Z score (3.46) than 78.48% of its industry peers.
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 RankSector Rank
Debt/Equity 1.44
Debt/FCF N/A
Altman-Z 3.46
ROIC/WACCN/A
WACCN/A
LPLA Yearly LT Debt VS Equity VS FCFLPLA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 3.05 indicates that LPLA has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.05, LPLA belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
A Quick Ratio of 3.05 indicates that LPLA has no problem at all paying its short term obligations.
LPLA's Quick ratio of 3.05 is amongst the best of the industry. LPLA outperforms 81.43% of its industry peers.
Industry RankSector Rank
Current Ratio 3.05
Quick Ratio 3.05
LPLA Yearly Current Assets VS Current LiabilitesLPLA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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6

3. Growth

3.1 Past

LPLA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.80%, which is quite good.
The Earnings Per Share has been growing by 18.07% on average over the past years. This is quite good.
LPLA shows a strong growth in Revenue. In the last year, the Revenue has grown by 29.23%.
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)17.8%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%16.24%
Revenue 1Y (TTM)29.23%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%30.81%

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 8.27% yearly.
EPS Next Y17.5%
EPS Next 2Y19.23%
EPS Next 3Y20.06%
EPS Next 5Y10.6%
Revenue Next Year34.86%
Revenue Next 2Y27.29%
Revenue Next 3Y22.76%
Revenue Next 5Y8.27%

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 decreasing: in the next years the growth will be less than in the last years.
LPLA Yearly Revenue VS EstimatesLPLA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
LPLA Yearly EPS VS EstimatesLPLA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.76 indicates a rather expensive valuation of LPLA.
LPLA's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, LPLA is valued a bit cheaper.
LPLA is valuated correctly with a Price/Forward Earnings ratio of 14.45.
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 (22.73), we can say LPLA is valued slightly cheaper.
Industry RankSector Rank
PE 18.76
Fwd PE 14.45
LPLA Price Earnings VS Forward Price EarningsLPLA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

86.50% of the companies in the same industry are more expensive than LPLA, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.86
LPLA Per share dataLPLA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

LPLA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 20.06% in the coming years.
PEG (NY)1.07
PEG (5Y)1.04
EPS Next 2Y19.23%
EPS Next 3Y20.06%

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5

5. Dividend

5.1 Amount

With a yearly dividend of 0.35%, LPLA is not a good candidate for dividend investing.
LPLA's Dividend Yield is slightly below the industry average, which is at 7.96.
Compared to an average S&P500 Dividend Yield of 2.38, LPLA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.35%

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
LPLA Yearly Dividends per shareLPLA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

LPLA pays out 8.17% 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.
DP8.17%
EPS Next 2Y19.23%
EPS Next 3Y20.06%
LPLA Yearly Income VS Free CF VS DividendLPLA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B
LPLA Dividend Payout.LPLA Dividend Payout, showing the Payout Ratio.LPLA Dividend Payout.PayoutRetained Earnings

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LPL FINANCIAL HOLDINGS INC

NASDAQ:LPLA (9/15/2025, 2:53:02 PM)

338.94

-11.7 (-3.34%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)10-28 2025-10-28/amc
Inst Owners98.99%
Inst Owner Change1.63%
Ins Owners0.39%
Ins Owner Change0.02%
Market Cap27.12B
Analysts80.95
Price Target450.42 (32.89%)
Short Float %3.55%
Short Ratio3.47
Dividend
Industry RankSector Rank
Dividend Yield 0.35%
Yearly Dividend1.2
Dividend Growth(5Y)3.76%
DP8.17%
Div Incr Years0
Div Non Decr Years11
Ex-Date08-15 2025-08-15 (0.3)
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)-0.81%
PT rev (3m)5.81%
EPS NQ rev (1m)-0.64%
EPS NQ rev (3m)-4.1%
EPS NY rev (1m)0.29%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)5.63%
Revenue NQ rev (3m)9.6%
Revenue NY rev (1m)5.39%
Revenue NY rev (3m)6.81%
Valuation
Industry RankSector Rank
PE 18.76
Fwd PE 14.45
P/S 1.92
P/FCF N/A
P/OCF 48.1
P/B 5.34
P/tB 22.23
EV/EBITDA 11.86
EPS(TTM)18.07
EY5.33%
EPS(NY)23.45
Fwd EY6.92%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)7.05
OCFY2.08%
SpS176.57
BVpS63.43
TBVpS15.25
PEG (NY)1.07
PEG (5Y)1.04
Profitability
Industry RankSector 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%
ROICexcg growth 3Y-20.71%
ROICexcg 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 RankSector 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 3.46
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)17.8%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%16.24%
EPS Next Y17.5%
EPS Next 2Y19.23%
EPS Next 3Y20.06%
EPS Next 5Y10.6%
Revenue 1Y (TTM)29.23%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%30.81%
Revenue Next Year34.86%
Revenue Next 2Y27.29%
Revenue Next 3Y22.76%
Revenue Next 5Y8.27%
EBIT growth 1Y24.53%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year9.69%
EBIT Next 3Y26.54%
EBIT Next 5Y13.75%
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%