357.17 USD
-2.58 (-0.72%)
357.17 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. LPLA has only an average score on both its financial health and profitability. 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
LPLA had positive earnings in the past year.
In the past year LPLA has reported a negative 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.
1.2 Ratios
The Return On Assets of LPLA (4.62%) is better than 69.79% of its industry peers.
The Return On Equity of LPLA (16.52%) is better than 81.28% of its industry peers.
With an excellent Return On Invested Capital value of 10.03%, LPLA belongs to the best of the industry, outperforming 85.96% 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 7.07%.
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
The Profit Margin of LPLA (5.35%) is worse than 67.66% 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 63.40% of its industry peers.
In the last couple of years the Operating Margin of LPLA has declined.
LPLA has a better Gross Margin (98.94%) than 99.15% 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
The number of shares outstanding for LPLA remains at a similar level compared to 1 year ago.
The number of shares outstanding for LPLA has been reduced compared to 5 years ago.
The debt/assets ratio for LPLA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.30 indicates that LPLA is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.30, LPLA is doing good in the industry, outperforming 77.02% of the companies in the same industry.
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 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.3 |
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 77.87% 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.
Looking at the Quick ratio, with a value of 2.38, LPLA is in the better half of the industry, outperforming 77.87% 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.
The Earnings Per Share has been growing by 18.07% on average over the past years. This is quite good.
LPLA shows a strong growth in Revenue. In the last year, 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.
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 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.
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 18.69, LPLA is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as LPLA.
Compared to an average S&P500 Price/Earnings ratio of 26.51, LPLA is valued a bit cheaper.
LPLA is valuated correctly with a Price/Forward Earnings ratio of 14.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LPLA is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.13. LPLA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 14.99 |
4.2 Price Multiples
LPLA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LPLA is cheaper than 82.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.41 |
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 20.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.8
PEG (5Y)1.03
EPS Next 2Y20.19%
EPS Next 3Y20.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.32%, LPLA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.65, LPLA is paying slightly less dividend.
With a Dividend Yield of 0.32, LPLA pays less dividend than the S&P500 average, which is at 2.00.
| 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 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
11.15% 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.
DP11.15%
EPS Next 2Y20.19%
EPS Next 3Y20.47%
357.17
-2.58 (-0.72%)
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 Cap28.59B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts81.82
Price Target451.78 (26.49%)
Short Float %3.1%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
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)0.3%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)4.82%
EPS NY rev (1m)2.97%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)8.7%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)4.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 14.99 | ||
| P/S | 1.84 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.41 |
EPS(TTM)19.11
EY5.35%
EPS(NY)23.83
Fwd EY6.67%
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)1.03
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 | 3.3 |
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 18.69 and the Price/Book (PB) ratio is 5.67.
How financially healthy is LPL FINANCIAL HOLDINGS INC?
The financial health rating of LPL FINANCIAL HOLDINGS INC (LPLA) is 5 / 10.