LPL FINANCIAL HOLDINGS INC (LPLA) Stock Fundamental Analysis
USA - NASDAQ:LPLA - US50212V1008 - Common Stock
370.59 USD
-1.85 (-0.5%)
370.59 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 average financial health and profitability rating. LPLA is not overvalued while it is showing excellent growth. This is an interesting combination. 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 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
LPLA has a better Return On Assets (4.62%) than 68.35% of its industry peers.
LPLA's Return On Equity of 16.52% is amongst the best of the industry. LPLA outperforms 81.86% of its industry peers.
LPLA's Return On Invested Capital of 10.03% is amongst the best of the industry. LPLA outperforms 86.08% of its industry peers.
LPLA had an Average Return On Invested Capital over the past 3 years of 15.44%. This is significantly above the industry average of 7.47%.
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
LPLA has a Profit Margin of 5.35%. This is in the lower half of the industry: LPLA underperforms 66.24% of its industry peers.
In the last couple of years the Profit Margin of LPLA has declined.
The Operating Margin of LPLA (12.49%) is worse than 64.98% 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.
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.
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
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.
The Altman-Z score of LPLA (3.34) is better than 76.79% 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.
With a Debt to Equity ratio value of 1.51, LPLA is not doing good in the industry: 71.73% 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's Current ratio of 2.38 is fine compared to the rest of the industry. LPLA outperforms 76.79% 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.
LPLA has a Quick ratio of 2.38. This is in the better half of the industry: LPLA outperforms 76.79% of its industry peers.
| 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.
LPLA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.07% yearly.
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
The Earnings Per Share is expected to grow by 10.60% on average over the next years. This is quite good.
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
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 19.39 indicates a rather expensive valuation of LPLA.
LPLA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.89. LPLA is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.72, LPLA is valued correctly.
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 34.59. LPLA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 15.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPLA indicates a rather cheap valuation: LPLA is cheaper than 81.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.75 |
4.3 Compensation for Growth
LPLA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of LPLA 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)0.98
PEG (5Y)1.07
EPS Next 2Y19.52%
EPS Next 3Y20.72%
5. Dividend
5.1 Amount
LPLA has a yearly dividend return of 0.32%, which is pretty low.
Compared to an average industry Dividend Yield of 8.45, 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 2.42.
| 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 been paying a dividend for at least 10 years, so it has 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%
370.59
-1.85 (-0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change0.02%
Ins Owners0.39%
Ins Owner Change0%
Market Cap29.65B
Revenue(TTM)15.57B
Net Income(TTM)833.05M
Analysts80.87
Price Target423.23 (14.2%)
Short Float %2.71%
Short Ratio2.43
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-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)-4.32%
PT rev (3m)-6.8%
EPS NQ rev (1m)6.84%
EPS NQ rev (3m)3.84%
EPS NY rev (1m)2.24%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)7.67%
Revenue NQ rev (3m)15.81%
Revenue NY rev (1m)3.13%
Revenue NY rev (3m)8.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.39 | ||
| Fwd PE | 15.72 | ||
| P/S | 1.9 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 5.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.75 |
EPS(TTM)19.11
EY5.16%
EPS(NY)23.57
Fwd EY6.36%
FCF(TTM)-24.24
FCFYN/A
OCF(TTM)-17.19
OCFYN/A
SpS194.62
BVpS63.04
TBVpS-11.68
PEG (NY)0.98
PEG (5Y)1.07
Graham Number164.63
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 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 7 / 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%.