368.5 USD
-2.51 (-0.68%)
368.5 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. LPLA has an average financial health and profitability rating. LPLA is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make LPLA suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year LPLA was profitable.
LPLA had a negative 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
With a decent Return On Assets value of 4.62%, LPLA is doing good in the industry, outperforming 68.35% of the companies in the same industry.
The Return On Equity of LPLA (16.52%) is better than 81.01% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.03%, LPLA belongs to the top of the industry, outperforming 86.08% 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 6.99%.
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
With a Profit Margin value of 5.35%, LPLA is not doing good in the industry: 67.93% of the companies in the same industry are doing better.
LPLA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 12.49%, LPLA is not doing good in the industry: 64.56% of the companies in the same industry are doing better.
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.
LPLA's Gross Margin has been stable in the last couple of years.
| 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
The number of shares outstanding for LPLA remains at a similar level compared to 1 year ago.
LPLA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LPLA is higher compared to a year ago.
2.2 Solvency
LPLA has an Altman-Z score of 3.35. This indicates that LPLA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of LPLA (3.35) is better than 77.22% 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.
With a Debt to Equity ratio value of 1.51, LPLA is not doing good in the industry: 72.15% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.35 |
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 Current ratio of 2.38. This is in the better half of the industry: LPLA outperforms 77.64% 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.
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
The Earnings Per Share has grown by an impressive 21.26% over the past year.
LPLA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.07% yearly.
LPLA shows a strong growth in Revenue. In the last year, 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
The Earnings Per Share is expected to grow by 10.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 19.26% on average over the next years. This is quite good.
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 19.28.
LPLA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of LPLA to the average of the S&P500 Index (26.34), we can say LPLA is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.47, LPLA is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LPLA is on the same level as its industry peers.
LPLA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.28 | ||
| Fwd PE | 15.47 |
4.2 Price Multiples
81.43% 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 | 13.77 |
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.
LPLA's earnings are expected to grow with 20.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)1.07
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 8.30, 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 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
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%
368.5
-2.51 (-0.68%)
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 Cap29.49B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts81.82
Price Target442.76 (20.15%)
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 | 19.28 | ||
| Fwd PE | 15.47 | ||
| P/S | 1.89 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.77 |
EPS(TTM)19.11
EY5.19%
EPS(NY)23.81
Fwd EY6.46%
FCF(TTM)-24.23
FCFYN/A
OCF(TTM)-17.18
OCFYN/A
SpS194.52
BVpS63.01
TBVpS-11.68
PEG (NY)0.83
PEG (5Y)1.07
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 | 3.35 |
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%.