358.99 USD
-3.12 (-0.86%)
358.99 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 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.
- 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
- Looking at the Return On Assets, with a value of 4.62%, LPLA is in the better half of the industry, outperforming 65.82% of the companies in the same industry.
- LPLA has a better Return On Equity (16.52%) than 80.59% of its industry peers.
- LPLA's Return On Invested Capital of 10.03% is amongst the best of the industry. LPLA outperforms 85.23% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for LPLA is significantly above the industry average of 7.27%.
- 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 71.31% 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 64.13% of its industry peers.
- In the last couple of years the Operating Margin of LPLA has declined.
- LPLA's Gross Margin of 98.94% is amongst the best of 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
- LPLA has about the same amout of shares outstanding than it did 1 year ago.
- LPLA has less shares outstanding than it did 5 years ago.
- LPLA has a worse debt/assets ratio than last year.
2.2 Solvency
- LPLA has an Altman-Z score of 3.31. This indicates that LPLA is financially healthy and has little risk of bankruptcy at the moment.
- LPLA has a better Altman-Z score (3.31) than 77.64% 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.
- Looking at the Debt to Equity ratio, with a value of 1.51, LPLA is doing worse than 70.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.31 |
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.
- With a decent Quick ratio value of 2.38, LPLA is doing good in the industry, outperforming 77.64% 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.
- LPLA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.07% yearly.
- The Revenue has grown by 35.19% in the past year. This is a very strong growth!
- 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
- 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 Y22.43%
EPS Next 2Y19.97%
EPS Next 3Y20.95%
EPS Next 5Y10.6%
Revenue Next Year39.99%
Revenue Next 2Y31.99%
Revenue Next 3Y25.37%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.79, LPLA is valued on the expensive side.
- LPLA's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of LPLA to the average of the S&P500 Index (27.25), we can say LPLA is valued slightly cheaper.
- The Price/Forward Earnings ratio is 15.12, which indicates a correct valuation of LPLA.
- The rest of the industry has a similar Price/Forward Earnings ratio as LPLA.
- When comparing the Price/Forward Earnings ratio of LPLA to the average of the S&P500 Index (25.98), we can say LPLA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.79 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, LPLA is valued cheaply inside the industry as 83.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.49 |
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 20.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)1.04
EPS Next 2Y19.97%
EPS Next 3Y20.95%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.32%, LPLA is not a good candidate for dividend investing.
- LPLA's Dividend Yield is slightly below the industry average, which is at 5.87.
- With a Dividend Yield of 0.32, LPLA pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
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
- LPLA pays out 11.15% of its income as dividend. This is a sustainable payout ratio.
- LPLA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP11.15%
EPS Next 2Y19.97%
EPS Next 3Y20.95%
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 18.79 and the Price/Book (PB) ratio is 5.7.
How financially healthy is LPL FINANCIAL HOLDINGS INC?
The financial health rating of LPL FINANCIAL HOLDINGS INC (LPLA) is 5 / 10.