LPL FINANCIAL HOLDINGS INC (LPLA) Stock Fundamental Analysis
USA - NASDAQ:LPLA - US50212V1008 - Common Stock
329.25 USD
+8.26 (+2.57%)
329.25 USD
0 (0%)
Overall LPLA gets a fundamental rating of 6 out of 10. We evaluated LPLA against 237 industry peers in the Capital Markets industry. LPLA has an excellent profitability rating, but there are some minor concerns on its financial health. 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.
LPLA had a positive 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
LPLA has a better Return On Assets (6.40%) than 77.22% of its industry peers.
LPLA's Return On Equity of 22.03% is amongst the best of the industry. LPLA outperforms 88.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.46%, LPLA belongs to the top of the industry, outperforming 84.81% of the companies in the same industry.
LPLA had an Average Return On Invested Capital over the past 3 years of 15.44%. This is significantly above the industry average of 7.58%.
The 3 year average ROIC (15.44%) for LPLA is well above the current ROIC(10.46%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 22.03% | ||
| ROIC | 10.46% |
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 Profit Margin of 7.91%. This is in the lower half of the industry: LPLA underperforms 62.45% of its industry peers.
In the last couple of years the Profit Margin of LPLA has declined.
The Operating Margin of LPLA (13.92%) is worse than 64.56% of its industry peers.
In the last couple of years the Operating Margin of LPLA has declined.
LPLA's Gross Margin of 98.92% is amongst the best of the industry. LPLA outperforms 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 | 13.92% | ||
| PM (TTM) | 7.91% | ||
| GM | 98.93% |
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.
Compared to 5 years ago, LPLA has less shares outstanding
The debt/assets ratio for LPLA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.38 indicates that LPLA is not in any danger for bankruptcy at the moment.
LPLA has a Altman-Z score of 3.38. This is in the better half of the industry: LPLA outperforms 77.22% of its industry peers.
LPLA has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
LPLA has a worse Debt to Equity ratio (1.44) than 69.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.38 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.05 indicates that LPLA has no problem at all paying its short term obligations.
LPLA's Current ratio of 3.05 is amongst the best of the industry. LPLA outperforms 81.01% of its industry peers.
A Quick Ratio of 3.05 indicates that LPLA has no problem at all paying its short term obligations.
LPLA's Quick ratio of 3.05 is amongst the best of the industry. LPLA outperforms 81.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 3.05 |
3. Growth
3.1 Past
LPLA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.80%, which is quite good.
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 29.23%.
The Revenue has been growing by 17.10% on average over the past years. This is quite good.
EPS 1Y (TTM)17.8%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%16.24%
Revenue 1Y (TTM)29.23%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%30.81%
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 17.09% yearly.
EPS Next Y17.22%
EPS Next 2Y18.7%
EPS Next 3Y20.1%
EPS Next 5Y10.6%
Revenue Next Year34.75%
Revenue Next 2Y27.83%
Revenue Next 3Y22.95%
Revenue Next 5Y17.09%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 18.22 indicates a rather expensive valuation of LPLA.
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 27.53, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.16, LPLA is valued correctly.
LPLA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.04. LPLA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 14.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LPLA is valued cheaper than 86.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 20.10% in the coming years.
PEG (NY)1.06
PEG (5Y)1.01
EPS Next 2Y18.7%
EPS Next 3Y20.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, LPLA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.29, LPLA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, LPLA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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 8.17% 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.
DP8.17%
EPS Next 2Y18.7%
EPS Next 3Y20.1%
329.25
+8.26 (+2.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change-0.01%
Ins Owners0.39%
Ins Owner Change0.11%
Market Cap26.34B
Analysts80
Price Target442.34 (34.35%)
Short Float %2.75%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Yearly Dividend1.2
Dividend Growth(5Y)3.76%
DP8.17%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.36%
Min EPS beat(2)4.59%
Max EPS beat(2)8.12%
EPS beat(4)4
Avg EPS beat(4)7.08%
Min EPS beat(4)4.59%
Max EPS beat(4)9.9%
EPS beat(8)8
Avg EPS beat(8)5.48%
EPS beat(12)11
Avg EPS beat(12)4.74%
EPS beat(16)15
Avg EPS beat(16)5.1%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)2.92%
Revenue beat(8)4
Avg Revenue beat(8)0.5%
Revenue beat(12)5
Avg Revenue beat(12)0.05%
Revenue beat(16)9
Avg Revenue beat(16)2.18%
PT rev (1m)-2.53%
PT rev (3m)2.08%
EPS NQ rev (1m)0.62%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.23%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)5.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.22 | ||
| Fwd PE | 14.16 | ||
| P/S | 1.86 | ||
| P/FCF | N/A | ||
| P/OCF | 46.73 | ||
| P/B | 5.19 | ||
| P/tB | 21.59 | ||
| EV/EBITDA | 11.18 |
EPS(TTM)18.07
EY5.49%
EPS(NY)23.25
Fwd EY7.06%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)7.05
OCFY2.14%
SpS176.57
BVpS63.43
TBVpS15.25
PEG (NY)1.06
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 22.03% | ||
| ROCE | 13.96% | ||
| ROIC | 10.46% | ||
| ROICexc | 17.77% | ||
| ROICexgc | 49.87% | ||
| OM | 13.92% | ||
| PM (TTM) | 7.91% | ||
| GM | 98.93% | ||
| 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-Score3
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 108.67% | ||
| Cap/Sales | 4.03% | ||
| Interest Coverage | 6.36 | ||
| Cash Conversion | 22.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.05 | ||
| Quick Ratio | 3.05 | ||
| Altman-Z | 3.38 |
F-Score3
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)17.8%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%16.24%
EPS Next Y17.22%
EPS Next 2Y18.7%
EPS Next 3Y20.1%
EPS Next 5Y10.6%
Revenue 1Y (TTM)29.23%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%30.81%
Revenue Next Year34.75%
Revenue Next 2Y27.83%
Revenue Next 3Y22.95%
Revenue Next 5Y17.09%
EBIT growth 1Y24.53%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year35.15%
EBIT Next 3Y26.74%
EBIT Next 5Y18.45%
FCF growth 1Y-100.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-73.72%
OCF growth 3Y-15.07%
OCF growth 5Y-14.95%