359.82 USD
-2.54 (-0.7%)
359.82 USD
0 (0%)
LPLA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 235 industry peers in the Capital Markets industry. Both the profitability and the financial health of LPLA get a neutral evaluation. Nothing too spectacular is happening here. 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
LPLA had positive earnings in the past year.
In the past year LPLA has reported a negative cash flow from operations.
In the past 5 years LPLA has always been profitable.
Each year in the past 5 years LPLA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of LPLA (4.62%) is better than 69.36% of its industry peers.
With an excellent Return On Equity value of 16.52%, LPLA belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
LPLA has a Return On Invested Capital of 10.03%. This is amongst the best in the industry. LPLA outperforms 85.53% 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 7.14%.
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: 68.09% 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: 63.83% of the companies in the same industry are doing better.
LPLA's Operating Margin has declined in the last couple of years.
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.
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
An Altman-Z score of 3.31 indicates that LPLA is not in any danger for bankruptcy at the moment.
LPLA's Altman-Z score of 3.31 is fine compared to the rest of the industry. LPLA outperforms 77.87% 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.
The Debt to Equity ratio of LPLA (1.51) is worse than 70.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.31 |
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.
The Current ratio of LPLA (2.38) is better than 77.87% 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 77.87% 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.
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!
The Revenue has been growing by 17.10% on average over the past years. This is quite good.
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
Based on estimates for the next years, LPLA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.60% on average per year.
LPLA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.26% yearly.
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
With a Price/Earnings ratio of 18.83, LPLA is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as LPLA.
LPLA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.10, the valuation of LPLA can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as LPLA.
The average S&P500 Price/Forward Earnings ratio is at 23.88. LPLA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.83 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPLA is valued cheaper than 83.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.5 |
4.3 Compensation for Growth
The 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)0.8
PEG (5Y)1.04
EPS Next 2Y20.19%
EPS Next 3Y20.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, LPLA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.39, LPLA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.94, LPLA's dividend is way lower than the S&P500 average.
| 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
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 2Y20.19%
EPS Next 3Y20.47%
359.82
-2.54 (-0.7%)
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 Cap28.80B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts80.95
Price Target451.78 (25.56%)
Short Float %3.1%
Short Ratio3.36
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-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 | 18.83 | ||
| Fwd PE | 15.1 | ||
| P/S | 1.85 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.5 |
EPS(TTM)19.11
EY5.31%
EPS(NY)23.83
Fwd EY6.62%
FCF(TTM)-24.23
FCFYN/A
OCF(TTM)-17.18
OCFYN/A
SpS194.52
BVpS63.01
TBVpS-11.68
PEG (NY)0.8
PEG (5Y)1.04
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 | 3.31 |
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 18.83 and the Price/Book (PB) ratio is 5.71.
How financially healthy is LPL FINANCIAL HOLDINGS INC?
The financial health rating of LPL FINANCIAL HOLDINGS INC (LPLA) is 5 / 10.