LPL FINANCIAL HOLDINGS INC (LPLA)
US50212V1008 - Common Stock
Overall LPLA gets a fundamental rating of 5 out of 10. We evaluated LPLA against 218 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
LPLA had positive earnings in the past year.
LPLA had a positive operating cash flow in the past year.
Each year in the past 5 years LPLA has been profitable.
In the past 5 years LPLA always reported a positive cash flow from operatings.
1.2 Ratios
LPLA's Return On Assets of 8.42% is amongst the best of the industry. LPLA outperforms 83.72% of its industry peers.
The Return On Equity of LPLA (36.27%) is better than 97.21% of its industry peers.
The Return On Invested Capital of LPLA (13.92%) is better than 91.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LPLA is significantly above the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 36.27% | ||
| ROIC | 13.92% |
ROA(3y)8.31%
ROA(5y)8.33%
ROE(3y)39.28%
ROE(5y)41.69%
ROIC(3y)14.97%
ROIC(5y)14.71%
1.3 Margins
LPLA's Profit Margin of 8.73% is on the low side compared to the rest of the industry. LPLA is outperformed by 65.58% of its industry peers.
LPLA's Profit Margin has improved in the last couple of years.
LPLA has a Operating Margin of 14.23%. This is in the lower half of the industry: LPLA underperforms 65.58% of its industry peers.
LPLA's Operating Margin has improved in the last couple of years.
LPLA has a better Gross Margin (98.97%) than 98.60% 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 | 14.23% | ||
| PM (TTM) | 8.73% | ||
| GM | 98.97% |
OM growth 3Y9.68%
OM growth 5Y3.52%
PM growth 3Y9.63%
PM growth 5Y4.6%
GM growth 3Y0.05%
GM growth 5Y0.03%
2. Health
2.1 Basic Checks
LPLA has less shares outstanding than it did 1 year ago.
LPLA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for LPLA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.85 indicates that LPLA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.85, LPLA belongs to the top of the industry, outperforming 82.79% of the companies in the same industry.
The Debt to FCF ratio of LPLA is 47.37, which is on the high side as it means it would take LPLA, 47.37 years of fcf income to pay off all of its debts.
LPLA's Debt to FCF ratio of 47.37 is on the low side compared to the rest of the industry. LPLA is outperformed by 65.12% of its industry peers.
A Debt/Equity ratio of 1.64 is on the high side and indicates that LPLA has dependencies on debt financing.
With a Debt to Equity ratio value of 1.64, LPLA is not doing good in the industry: 73.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 47.37 | ||
| Altman-Z | 3.85 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
LPLA has a Current Ratio of 2.04. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LPLA (2.04) is better than 68.37% of its industry peers.
A Quick Ratio of 2.04 indicates that LPLA has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.04, LPLA is doing good in the industry, outperforming 68.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
LPLA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.79%.
LPLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.51% yearly.
The Revenue has grown by 18.21% in the past year. This is quite good.
The Revenue has been growing by 14.14% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.79%
EPS 3Y34.46%
EPS 5Y24.51%
EPS Q2Q%11.23%
Revenue 1Y (TTM)18.21%
Revenue growth 3Y19.63%
Revenue growth 5Y14.14%
Sales Q2Q%22.06%
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 9.31% yearly.
The Revenue is expected to grow by 7.43% on average over the next years.
EPS Next Y4.94%
EPS Next 2Y10.21%
EPS Next 3Y12.74%
EPS Next 5Y9.31%
Revenue Next Year21.03%
Revenue Next 2Y19.53%
Revenue Next 3Y17.11%
Revenue Next 5Y7.43%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.93 indicates a rather expensive valuation of LPLA.
Based on the Price/Earnings ratio, LPLA is valued a bit more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.53. LPLA is valued slightly cheaper when compared to this.
LPLA is valuated correctly with a Price/Forward Earnings ratio of 16.49.
The rest of the industry has a similar Price/Forward Earnings ratio as LPLA.
When comparing the Price/Forward Earnings ratio of LPLA to the average of the S&P500 Index (23.40), we can say LPLA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 16.49 |
4.2 Price Multiples
81.86% of the companies in the same industry are more expensive than LPLA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LPLA indicates a slightly more expensive valuation: LPLA is more expensive than 67.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 244.75 | ||
| EV/EBITDA | 12.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LPLA does not grow enough to justify the current Price/Earnings ratio.
LPLA has a very decent profitability rating, which may justify a higher PE ratio.
LPLA's earnings are expected to grow with 12.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.03
PEG (5Y)0.81
EPS Next 2Y10.21%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, LPLA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.82, LPLA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.21, LPLA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
5.2 History
The dividend of LPLA has a limited annual growth rate of 3.46%.
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)3.46%
Div Incr Years1
Div Non Decr Years10
5.3 Sustainability
LPLA pays out 8.94% of its income as dividend. This is a sustainable payout ratio.
LPLA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.94%
EPS Next 2Y10.21%
EPS Next 3Y12.74%
LPL FINANCIAL HOLDINGS INC
NASDAQ:LPLA (11/15/2024, 8:23:45 PM)
After market: 314.02 0 (0%)314.02
-0.52 (-0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.51B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Dividend Growth(5Y)
DP
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Div Non Decr Years
Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 16.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.03
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.42% | ||
| ROE | 36.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.23% | ||
| PM (TTM) | 8.73% | ||
| GM | 98.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-3.79%
EPS 3Y34.46%
EPS 5Y
EPS Q2Q%
EPS Next Y4.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)18.21%
Revenue growth 3Y19.63%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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