357.745 USD
+1.7 (+0.48%)
We assign a fundamental rating of 6 out of 10 to LPLA. LPLA was compared to 238 industry peers in the Capital Markets industry. LPLA has an average financial health and profitability rating. LPLA is showing excellent growth while it is valued at reasonable prices. 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.
In the past year LPLA has reported a negative cash flow from operations.
LPLA had positive earnings in each of the past 5 years.
Each year in the past 5 years LPLA had a positive operating cash flow.
1.2 Ratios
LPLA has a better Return On Assets (4.62%) than 68.91% of its industry peers.
LPLA has a better Return On Equity (16.52%) than 81.51% of its industry peers.
LPLA has a Return On Invested Capital of 10.03%. This is amongst the best in the industry. LPLA outperforms 86.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LPLA is significantly above the industry average of 6.96%.
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 67.65% of its industry peers.
LPLA's Profit Margin has declined in the last couple of years.
LPLA's Operating Margin of 12.49% is on the low side compared to the rest of the industry. LPLA is outperformed by 64.71% of its industry peers.
LPLA's Operating Margin has declined in the last couple of years.
LPLA has a better Gross Margin (98.94%) than 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.
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 3.29 indicates that LPLA is not in any danger for bankruptcy at the moment.
LPLA's Altman-Z score of 3.29 is fine compared to the rest of the industry. LPLA outperforms 76.47% 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 72.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.29 |
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 better Current ratio (2.38) than 77.31% of its industry peers.
A Quick Ratio of 2.38 indicates that LPLA has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.38, LPLA is doing good in the industry, outperforming 77.31% 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.
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
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.
The Revenue is expected to grow by 19.26% on average over the next years. This is quite good.
EPS Next Y19.85%
EPS Next 2Y19.52%
EPS Next 3Y20.72%
EPS Next 5Y10.6%
Revenue Next Year38.97%
Revenue Next 2Y31.72%
Revenue Next 3Y24.75%
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 18.72, LPLA is valued on the expensive side.
LPLA's Price/Earnings is on the same level as the industry average.
LPLA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.31.
A Price/Forward Earnings ratio of 15.18 indicates a correct valuation of LPLA.
The rest of the industry has a similar Price/Forward Earnings ratio as LPLA.
LPLA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 15.18 |
4.2 Price Multiples
81.93% 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 | 13.3 |
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 20.72% in the coming years.
PEG (NY)0.94
PEG (5Y)1.04
EPS Next 2Y19.52%
EPS Next 3Y20.72%
5. Dividend
5.1 Amount
LPLA has a yearly dividend return of 0.34%, which is pretty low.
Compared to an average industry Dividend Yield of 8.39, LPLA is paying slightly less dividend.
With a Dividend Yield of 0.34, LPLA pays less dividend than the S&P500 average, which is at 2.32.
| 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 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.
The dividend of LPLA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP11.15%
EPS Next 2Y19.52%
EPS Next 3Y20.72%
NASDAQ:LPLA (12/1/2025, 11:13:04 AM)
357.745
+1.7 (+0.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change-0.71%
Ins Owners0.39%
Ins Owner Change-0.55%
Market Cap28.63B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts80.87
Price Target439.62 (22.89%)
Short Float %3.02%
Short Ratio2.63
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-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)-0.61%
PT rev (3m)-3.19%
EPS NQ rev (1m)6.82%
EPS NQ rev (3m)3.78%
EPS NY rev (1m)2.83%
EPS NY rev (3m)2%
Revenue NQ rev (1m)4.92%
Revenue NQ rev (3m)9.24%
Revenue NY rev (1m)2.48%
Revenue NY rev (3m)6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.72 | ||
| Fwd PE | 15.18 | ||
| P/S | 1.84 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.68 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.3 |
EPS(TTM)19.11
EY5.34%
EPS(NY)23.57
Fwd EY6.59%
FCF(TTM)-24.23
FCFYN/A
OCF(TTM)-17.18
OCFYN/A
SpS194.52
BVpS63.01
TBVpS-11.68
PEG (NY)0.94
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 | 3.29 |
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 Y19.85%
EPS Next 2Y19.52%
EPS Next 3Y20.72%
EPS Next 5Y10.6%
Revenue 1Y (TTM)35.19%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%47.85%
Revenue Next Year38.97%
Revenue Next 2Y31.72%
Revenue Next 3Y24.75%
Revenue Next 5Y19.26%
EBIT growth 1Y18.72%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year35.15%
EBIT Next 3Y26.74%
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 19.85% 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%.