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LPL FINANCIAL HOLDINGS INC (LPLA) Stock Fundamental Analysis

NASDAQ:LPLA - Nasdaq - US50212V1008 - Common Stock - Currency: USD

306.02  -0.02 (-0.01%)

After market: 306.02 0 (0%)

Fundamental Rating

5

Overall LPLA gets a fundamental rating of 5 out of 10. We evaluated LPLA against 227 industry peers in the Capital Markets industry. LPLA has only an average score on both its financial health and profitability. LPLA has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year LPLA was profitable.
In the past year LPLA had a positive cash flow from operations.
Each year in the past 5 years LPLA has been profitable.
LPLA had a positive operating cash flow in each of the past 5 years.
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 (7.95%) than 83.70% of its industry peers.
With an excellent Return On Equity value of 36.12%, LPLA belongs to the best of the industry, outperforming 97.36% of the companies in the same industry.
LPLA has a better Return On Invested Capital (12.68%) than 87.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LPLA is significantly above the industry average of 7.06%.
Industry RankSector Rank
ROA 7.95%
ROE 36.12%
ROIC 12.68%
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

With a Profit Margin value of 8.55%, LPLA is not doing good in the industry: 67.40% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of LPLA has declined.
The Operating Margin of LPLA (13.98%) is worse than 67.40% of its industry peers.
In the last couple of years the Operating Margin of LPLA has declined.
With an excellent Gross Margin value of 98.97%, LPLA belongs to the best of the industry, outperforming 99.12% of the companies in the same industry.
In the last couple of years the Gross Margin of LPLA has remained more or less at the same level.
Industry RankSector Rank
OM 13.98%
PM (TTM) 8.55%
GM 98.97%
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

The number of shares outstanding for LPLA remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LPLA has less shares outstanding
LPLA has a worse debt/assets ratio than last year.
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

LPLA has an Altman-Z score of 3.63. This indicates that LPLA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.63, LPLA belongs to the best of the industry, outperforming 80.62% of the companies in the same industry.
LPLA has a Debt/Equity ratio of 1.91. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.91, LPLA is not doing good in the industry: 75.77% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.91
Debt/FCF N/A
Altman-Z 3.63
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

LPLA has a Current Ratio of 2.15. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
LPLA's Current ratio of 2.15 is fine compared to the rest of the industry. LPLA outperforms 71.81% of its industry peers.
LPLA has a Quick Ratio of 2.15. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of LPLA (2.15) is better than 72.25% of its industry peers.
Industry RankSector Rank
Current Ratio 2.15
Quick Ratio 2.15
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 small growth in Earnings Per Share. In the last year, the EPS has grown by 5.23%.
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 23.20%.
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)5.23%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%21.08%
Revenue 1Y (TTM)23.2%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%32.84%

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 9.94% yearly.
Based on estimates for the next years, LPLA will show a quite strong growth in Revenue. The Revenue will grow by 8.25% on average per year.
EPS Next Y22.11%
EPS Next 2Y20.56%
EPS Next 3Y19.86%
EPS Next 5Y9.94%
Revenue Next Year14.15%
Revenue Next 2Y13.01%
Revenue Next 3Y15.5%
Revenue Next 5Y8.25%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

LPLA is valuated rather expensively with a Price/Earnings ratio of 18.55.
Compared to the rest of the industry, the Price/Earnings ratio of LPLA is on the same level as its industry peers.
LPLA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 15.19, LPLA is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as LPLA.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, LPLA is valued a bit cheaper.
Industry RankSector Rank
PE 18.55
Fwd PE 15.19
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

Based on the Enterprise Value to EBITDA ratio, LPLA is valued cheaper than 81.94% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.66
LPLA Per share dataLPLA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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.
The decent profitability rating of LPLA may justify a higher PE ratio.
A more expensive valuation may be justified as LPLA's earnings are expected to grow with 19.86% in the coming years.
PEG (NY)0.84
PEG (5Y)1.03
EPS Next 2Y20.56%
EPS Next 3Y19.86%

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5

5. Dividend

5.1 Amount

LPLA has a yearly dividend return of 0.40%, which is pretty low.
Compared to an average industry Dividend Yield of 8.84, LPLA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.57, LPLA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.4%

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 Years1
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

8.48% 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.
DP8.48%
EPS Next 2Y20.56%
EPS Next 3Y19.86%
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 (4/17/2025, 8:00:00 PM)

After market: 306.02 0 (0%)

306.02

-0.02 (-0.01%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-30 2025-01-30/amc
Earnings (Next)04-24 2025-04-24/amc
Inst Owners96.75%
Inst Owner Change0.01%
Ins Owners0.52%
Ins Owner Change0.77%
Market Cap24.50B
Analysts81.9
Price Target429.34 (40.3%)
Short Float %1.65%
Short Ratio1.54
Dividend
Industry RankSector Rank
Dividend Yield 0.4%
Yearly Dividend1.2
Dividend Growth(5Y)3.76%
DP8.48%
Div Incr Years1
Div Non Decr Years11
Ex-Date03-11 2025-03-11 (0.3)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.8%
Min EPS beat(2)5.71%
Max EPS beat(2)9.9%
EPS beat(4)4
Avg EPS beat(4)6.69%
Min EPS beat(4)2.73%
Max EPS beat(4)9.9%
EPS beat(8)7
Avg EPS beat(8)4.05%
EPS beat(12)11
Avg EPS beat(12)5.17%
EPS beat(16)15
Avg EPS beat(16)5.93%
Revenue beat(2)1
Avg Revenue beat(2)1.02%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)2.92%
Revenue beat(4)2
Avg Revenue beat(4)1.05%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)2.92%
Revenue beat(8)3
Avg Revenue beat(8)0.16%
Revenue beat(12)6
Avg Revenue beat(12)0.91%
Revenue beat(16)10
Avg Revenue beat(16)2.66%
PT rev (1m)0.66%
PT rev (3m)23.23%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)3.61%
Revenue NQ rev (1m)-9.84%
Revenue NQ rev (3m)-2.77%
Revenue NY rev (1m)-8.1%
Revenue NY rev (3m)-4.11%
Valuation
Industry RankSector Rank
PE 18.55
Fwd PE 15.19
P/S 1.98
P/FCF N/A
P/OCF 88.25
P/B 8.36
P/tB N/A
EV/EBITDA 12.66
EPS(TTM)16.5
EY5.39%
EPS(NY)20.15
Fwd EY6.58%
FCF(TTM)-3.56
FCFYN/A
OCF(TTM)3.47
OCFY1.13%
SpS154.72
BVpS36.61
TBVpS-9.06
PEG (NY)0.84
PEG (5Y)1.03
Profitability
Industry RankSector Rank
ROA 7.95%
ROE 36.12%
ROCE 16.92%
ROIC 12.68%
ROICexc 16.92%
ROICexgc 49.17%
OM 13.98%
PM (TTM) 8.55%
GM 98.97%
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-Score5
Asset Turnover0.93
Health
Industry RankSector Rank
Debt/Equity 1.91
Debt/FCF N/A
Debt/EBITDA 2.57
Cap/Depr 126.76%
Cap/Sales 4.54%
Interest Coverage 6.45
Cash Conversion 12.76%
Profit Quality N/A
Current Ratio 2.15
Quick Ratio 2.15
Altman-Z 3.63
F-Score5
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)5.23%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%21.08%
EPS Next Y22.11%
EPS Next 2Y20.56%
EPS Next 3Y19.86%
EPS Next 5Y9.94%
Revenue 1Y (TTM)23.2%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%32.84%
Revenue Next Year14.15%
Revenue Next 2Y13.01%
Revenue Next 3Y15.5%
Revenue Next 5Y8.25%
EBIT growth 1Y4.73%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year37.04%
EBIT Next 3Y22.83%
EBIT Next 5Y12.55%
FCF growth 1Y-360.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-45.85%
OCF growth 3Y-15.07%
OCF growth 5Y-14.95%