370.7 USD
+8.24 (+2.27%)
370.7 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LPLA. LPLA was compared to 238 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 growing strongly while it is still valued neutral. This is a good combination! This makes LPLA very considerable 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 68.49% of the companies in the same industry.
LPLA has a Return On Equity of 16.52%. This is amongst the best in the industry. LPLA outperforms 80.67% of its industry peers.
With an excellent Return On Invested Capital value of 10.03%, LPLA belongs to the best of the industry, outperforming 86.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for LPLA is significantly above the industry average of 7.00%.
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 has a worse Profit Margin (5.35%) than 67.65% of its industry peers.
LPLA's Profit Margin has declined in the last couple of years.
LPLA has a worse Operating Margin (12.49%) than 64.29% of its industry peers.
LPLA's Operating Margin has declined in the last couple of years.
LPLA's Gross Margin of 98.94% is amongst the best of the industry. LPLA outperforms 99.16% 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.
Compared to 1 year ago, LPLA has a worse debt to assets ratio.
2.2 Solvency
LPLA has an Altman-Z score of 3.34. This indicates that LPLA is financially healthy and has little risk of bankruptcy at the moment.
LPLA's Altman-Z score of 3.34 is fine compared to the rest of the industry. LPLA outperforms 77.31% 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: 72.27% 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 better Current ratio (2.38) than 77.73% of its industry peers.
A Quick Ratio of 2.38 indicates that LPLA has no problem at all paying 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 77.73% 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.
Looking at the last year, LPLA shows a very strong growth in Revenue. The Revenue has grown by 35.19%.
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.
The Revenue is expected to grow by 19.26% on average over the next years. This is quite good.
EPS Next Y23.28%
EPS Next 2Y20.14%
EPS Next 3Y20.71%
EPS Next 5Y10.6%
Revenue Next Year39.91%
Revenue Next 2Y31.52%
Revenue Next 3Y24.63%
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
LPLA is valuated rather expensively with a Price/Earnings ratio of 19.40.
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 26.61.
LPLA is valuated correctly with a Price/Forward Earnings ratio of 15.57.
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 24.01, LPLA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 15.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPLA is valued cheaply inside the industry as 81.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.76 |
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.
LPLA's earnings are expected to grow with 20.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)1.07
EPS Next 2Y20.14%
EPS Next 3Y20.71%
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 6.43, 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 1.87.
| 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
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 2Y20.14%
EPS Next 3Y20.71%
370.7
+8.24 (+2.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners101.12%
Inst Owner Change-0.69%
Ins Owners0.38%
Ins Owner Change-0.72%
Market Cap29.67B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts81.82
Price Target442.76 (19.44%)
Short Float %2.89%
Short Ratio3.02
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)4.61%
PT rev (3m)-1.7%
EPS NQ rev (1m)0.71%
EPS NQ rev (3m)5.55%
EPS NY rev (1m)2.87%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)8.7%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)3.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 15.57 | ||
| P/S | 1.91 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.76 |
EPS(TTM)19.11
EY5.16%
EPS(NY)23.81
Fwd EY6.42%
FCF(TTM)-24.23
FCFYN/A
OCF(TTM)-17.18
OCFYN/A
SpS194.52
BVpS63.01
TBVpS-11.68
PEG (NY)0.83
PEG (5Y)1.07
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 Y23.28%
EPS Next 2Y20.14%
EPS Next 3Y20.71%
EPS Next 5Y10.6%
Revenue 1Y (TTM)35.19%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%47.85%
Revenue Next Year39.91%
Revenue Next 2Y31.52%
Revenue Next 3Y24.63%
Revenue Next 5Y19.26%
EBIT growth 1Y18.72%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year36.73%
EBIT Next 3Y25.63%
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 23.28% 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%.