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LPL FINANCIAL HOLDINGS INC (LPLA) Stock Fundamental Analysis

NASDAQ:LPLA - Nasdaq - US50212V1008 - Common Stock - Currency: USD

387.16  -0.39 (-0.1%)

After market: 387.16 0 (0%)

Fundamental Rating

5

Overall LPLA gets a fundamental rating of 5 out of 10. We evaluated LPLA against 232 industry peers in the Capital Markets industry. LPLA has only an average score on both its financial health and profitability. LPLA is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year LPLA was profitable.
In the past year LPLA had a positive cash flow from operations.
In the past 5 years LPLA has always been profitable.
Each year in the past 5 years LPLA had a positive operating cash flow.
LPLA Yearly Net Income VS EBIT VS OCF VS FCFLPLA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

1.2 Ratios

LPLA's Return On Assets of 7.79% is amongst the best of the industry. LPLA outperforms 85.34% of its industry peers.
With an excellent Return On Equity value of 34.84%, LPLA belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
LPLA has a better Return On Invested Capital (12.77%) than 85.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LPLA is significantly above the industry average of 7.24%.
Industry RankSector Rank
ROA 7.79%
ROE 34.84%
ROIC 12.77%
ROA(3y)9.04%
ROA(5y)8.01%
ROE(3y)42.14%
ROE(5y)37.98%
ROIC(3y)15.44%
ROIC(5y)14.04%
LPLA Yearly ROA, ROE, ROICLPLA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

Looking at the Profit Margin, with a value of 8.23%, LPLA is doing worse than 64.66% of the companies in the same industry.
LPLA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 13.82%, LPLA is not doing good in the industry: 65.95% of the companies in the same industry are doing better.
LPLA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 98.93%, LPLA belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
LPLA's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 13.82%
PM (TTM) 8.23%
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%
LPLA Yearly Profit, Operating, Gross MarginsLPLA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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5

2. Health

2.1 Basic Checks

The number of shares outstanding for LPLA remains at a similar level compared to 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.
LPLA Yearly Shares OutstandingLPLA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
LPLA Yearly Total Debt VS Total AssetsLPLA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

LPLA has an Altman-Z score of 3.96. This indicates that LPLA is financially healthy and has little risk of bankruptcy at the moment.
LPLA has a better Altman-Z score (3.96) than 82.33% of its industry peers.
A Debt/Equity ratio of 1.85 is on the high side and indicates that LPLA has dependencies on debt financing.
LPLA has a worse Debt to Equity ratio (1.85) than 77.59% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.85
Debt/FCF N/A
Altman-Z 3.96
ROIC/WACCN/A
WACCN/A
LPLA Yearly LT Debt VS Equity VS FCFLPLA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 2.19 indicates that LPLA has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.19, LPLA is doing good in the industry, outperforming 71.98% of the companies in the same industry.
LPLA has a Quick Ratio of 2.19. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
LPLA has a better Quick ratio (2.19) than 71.98% of its industry peers.
Industry RankSector Rank
Current Ratio 2.19
Quick Ratio 2.19
LPLA Yearly Current Assets VS Current LiabilitesLPLA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.25% over the past year.
The Earnings Per Share has been growing by 18.07% on average over the past years. This is quite good.
Looking at the last year, LPLA shows a very strong growth in Revenue. The Revenue has grown by 26.32%.
LPLA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.10% yearly.
EPS 1Y (TTM)13.25%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%22.33%
Revenue 1Y (TTM)26.32%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%29.56%

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 9.94% yearly.
LPLA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.25% yearly.
EPS Next Y17.65%
EPS Next 2Y16.95%
EPS Next 3Y18.92%
EPS Next 5Y9.94%
Revenue Next Year23.7%
Revenue Next 2Y17.48%
Revenue Next 3Y15.16%
Revenue Next 5Y8.25%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
LPLA Yearly Revenue VS EstimatesLPLA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B 20B
LPLA Yearly EPS VS EstimatesLPLA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30

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3

4. Valuation

4.1 Price/Earnings Ratio

LPLA is valuated rather expensively with a Price/Earnings ratio of 22.20.
Based on the Price/Earnings ratio, LPLA is valued a bit more expensive than the industry average as 61.64% of the companies are valued more cheaply.
LPLA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.15 indicates a rather expensive valuation of LPLA.
LPLA's Price/Forward Earnings is on the same level as the industry average.
LPLA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.15.
Industry RankSector Rank
PE 22.2
Fwd PE 17.15
LPLA Price Earnings VS Forward Price EarningsLPLA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

LPLA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LPLA is cheaper than 79.31% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.72
LPLA Per share dataLPLA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

LPLA's 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.
LPLA's earnings are expected to grow with 18.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)1.23
EPS Next 2Y16.95%
EPS Next 3Y18.92%

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5

5. Dividend

5.1 Amount

With a yearly dividend of 0.31%, LPLA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.14, LPLA is paying slightly less dividend.
With a Dividend Yield of 0.31, LPLA pays less dividend than the S&P500 average, which is at 2.38.
Industry RankSector Rank
Dividend Yield 0.31%

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
LPLA Yearly Dividends per shareLPLA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

LPLA pays out 8.24% 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.
DP8.24%
EPS Next 2Y16.95%
EPS Next 3Y18.92%
LPLA Yearly Income VS Free CF VS DividendLPLA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B
LPLA Dividend Payout.LPLA Dividend Payout, showing the Payout Ratio.LPLA Dividend Payout.PayoutRetained Earnings

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LPL FINANCIAL HOLDINGS INC

NASDAQ:LPLA (5/30/2025, 8:12:06 PM)

After market: 387.16 0 (0%)

387.16

-0.39 (-0.1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)07-23 2025-07-23/amc
Inst Owners96.75%
Inst Owner Change8.99%
Ins Owners0.52%
Ins Owner Change1.56%
Market Cap30.97B
Analysts82.73
Price Target397.97 (2.79%)
Short Float %2.22%
Short Ratio1.72
Dividend
Industry RankSector Rank
Dividend Yield 0.31%
Yearly Dividend1.2
Dividend Growth(5Y)3.76%
DP8.24%
Div Incr Years0
Div Non Decr Years11
Ex-Date05-30 2025-05-30 (0.3)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.92%
Min EPS beat(2)5.71%
Max EPS beat(2)8.12%
EPS beat(4)4
Avg EPS beat(4)6.62%
Min EPS beat(4)2.73%
Max EPS beat(4)9.9%
EPS beat(8)7
Avg EPS beat(8)4.86%
EPS beat(12)11
Avg EPS beat(12)5.31%
EPS beat(16)15
Avg EPS beat(16)5.28%
Revenue beat(2)1
Avg Revenue beat(2)1.28%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)2.92%
Revenue beat(4)1
Avg Revenue beat(4)0.33%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)2.92%
Revenue beat(8)3
Avg Revenue beat(8)0.26%
Revenue beat(12)5
Avg Revenue beat(12)0.47%
Revenue beat(16)9
Avg Revenue beat(16)2.51%
PT rev (1m)0%
PT rev (3m)-6.52%
EPS NQ rev (1m)-2.19%
EPS NQ rev (3m)-7.61%
EPS NY rev (1m)3.27%
EPS NY rev (3m)-4.04%
Revenue NQ rev (1m)11.8%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)8.46%
Revenue NY rev (3m)-0.63%
Valuation
Industry RankSector Rank
PE 22.2
Fwd PE 17.15
P/S 2.34
P/FCF N/A
P/OCF 161.7
P/B 9.91
P/tB N/A
EV/EBITDA 14.72
EPS(TTM)17.44
EY4.5%
EPS(NY)22.57
Fwd EY5.83%
FCF(TTM)-4.62
FCFYN/A
OCF(TTM)2.39
OCFY0.62%
SpS165.32
BVpS39.06
TBVpS-8.25
PEG (NY)1.26
PEG (5Y)1.23
Profitability
Industry RankSector Rank
ROA 7.79%
ROE 34.84%
ROCE 17.05%
ROIC 12.77%
ROICexc 17.16%
ROICexgc 47.55%
OM 13.82%
PM (TTM) 8.23%
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-Score4
Asset Turnover0.95
Health
Industry RankSector Rank
Debt/Equity 1.85
Debt/FCF N/A
Debt/EBITDA 2.51
Cap/Depr 116.16%
Cap/Sales 4.24%
Interest Coverage 6.56
Cash Conversion 8.29%
Profit Quality N/A
Current Ratio 2.19
Quick Ratio 2.19
Altman-Z 3.96
F-Score4
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)13.25%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%22.33%
EPS Next Y17.65%
EPS Next 2Y16.95%
EPS Next 3Y18.92%
EPS Next 5Y9.94%
Revenue 1Y (TTM)26.32%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%29.56%
Revenue Next Year23.7%
Revenue Next 2Y17.48%
Revenue Next 3Y15.16%
Revenue Next 5Y8.25%
EBIT growth 1Y13.48%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year35.92%
EBIT Next 3Y24.28%
EBIT Next 5Y12.55%
FCF growth 1Y-124.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-89.45%
OCF growth 3Y-15.07%
OCF growth 5Y-14.95%