376.56 USD
+6.44 (+1.74%)
376.84 USD
+0.28 (+0.07%)
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. LPLA has only an average score on both its financial health and profitability. LPLA is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make LPLA a good candidate 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
LPLA has a Return On Assets of 4.62%. This is in the better half of the industry: LPLA outperforms 69.36% of its industry peers.
LPLA has a Return On Equity of 16.52%. This is amongst the best in the industry. LPLA outperforms 80.85% of its industry peers.
The Return On Invested Capital of LPLA (10.03%) is better than 85.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LPLA is significantly above the industry average of 7.14%.
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's Profit Margin of 5.35% is on the low side compared to the rest of the industry. LPLA is outperformed by 68.09% 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 63.83% 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 99.15% 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
Compared to 1 year ago, LPLA has about the same amount of shares outstanding.
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
An Altman-Z score of 3.34 indicates that LPLA is not in any danger for bankruptcy at the moment.
The Altman-Z score of LPLA (3.34) is better than 77.45% of its industry peers.
LPLA has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.51, LPLA is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.34 |
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 77.87% 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 77.87% 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.
Measured over the past years, LPLA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.07% on average per year.
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
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.
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 Y23.4%
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 19.70.
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 (27.17), we can say LPLA is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.80, LPLA is valued correctly.
LPLA's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.79. LPLA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 15.8 |
4.2 Price Multiples
LPLA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LPLA is cheaper than 82.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.74 |
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)0.84
PEG (5Y)1.09
EPS Next 2Y20.19%
EPS Next 3Y20.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.34%, LPLA is not a good candidate for dividend investing.
LPLA's Dividend Yield is slightly below the industry average, which is at 6.39.
With a Dividend Yield of 0.34, LPLA pays less dividend than the S&P500 average, which is at 1.94.
| 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.
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%
376.56
+6.44 (+1.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners101.29%
Inst Owner Change0%
Ins Owners0.38%
Ins Owner Change-0.7%
Market Cap30.14B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts81.82
Price Target451.78 (19.98%)
Short Float %3.1%
Short Ratio3.36
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-DateN/A
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)2.13%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)5.45%
EPS NY rev (1m)0.1%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)1.16%
Revenue NQ rev (3m)8.7%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)4.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 15.8 | ||
| P/S | 1.94 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.74 |
EPS(TTM)19.11
EY5.07%
EPS(NY)23.83
Fwd EY6.33%
FCF(TTM)-24.23
FCFYN/A
OCF(TTM)-17.18
OCFYN/A
SpS194.52
BVpS63.01
TBVpS-11.68
PEG (NY)0.84
PEG (5Y)1.09
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 | 3.34 |
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.
What is the valuation status of LPL FINANCIAL HOLDINGS INC (LPLA) stock?
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 are the PE and PB ratios of LPL FINANCIAL HOLDINGS INC (LPLA) stock?
The Price/Earnings (PE) ratio for LPL FINANCIAL HOLDINGS INC (LPLA) is 19.7 and the Price/Book (PB) ratio is 5.98.
How financially healthy is LPL FINANCIAL HOLDINGS INC?
The financial health rating of LPL FINANCIAL HOLDINGS INC (LPLA) is 5 / 10.