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LPL FINANCIAL HOLDINGS INC (LPLA) Stock Fundamental Analysis

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

373.05  -1.92 (-0.51%)

After market: 373.05 0 (0%)

Fundamental Rating

5

LPLA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 233 industry peers in the Capital Markets industry. LPLA has an average financial health and profitability rating. LPLA is not valued too expensively and it also shows 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.
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.
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

Looking at the Return On Assets, with a value of 7.79%, LPLA belongs to the top of the industry, outperforming 86.70% of the companies in the same industry.
LPLA has a better Return On Equity (34.84%) than 96.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.77%, LPLA belongs to the top of the industry, outperforming 85.84% 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 7.84%.
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

LPLA has a Profit Margin of 8.23%. This is in the lower half of the industry: LPLA underperforms 64.81% of its industry peers.
In the last couple of years the Profit Margin of LPLA has declined.
LPLA's Operating Margin of 13.82% is on the low side compared to the rest of the industry. LPLA is outperformed by 66.52% of its industry peers.
LPLA's Operating Margin has declined in the last couple of years.
LPLA has a Gross Margin of 98.93%. This is amongst the best in the industry. LPLA outperforms 98.28% 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 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

Compared to 1 year ago, LPLA has about the same amount of shares outstanding.
Compared to 5 years ago, LPLA has less shares outstanding
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

An Altman-Z score of 3.90 indicates that LPLA is not in any danger for bankruptcy at the moment.
LPLA's Altman-Z score of 3.90 is amongst the best of the industry. LPLA outperforms 81.55% 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.
The Debt to Equity ratio of LPLA (1.85) is worse than 78.54% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.85
Debt/FCF N/A
Altman-Z 3.9
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

LPLA has a Current Ratio of 2.19. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.19, LPLA is in the better half of the industry, outperforming 72.10% of the companies in the same industry.
A Quick Ratio of 2.19 indicates that LPLA has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.19, LPLA is in the better half of the industry, outperforming 72.10% of the companies in the same industry.
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.
The Revenue has grown by 26.32% in the past year. This is a very strong growth!
Measured over the past years, LPLA shows a quite strong growth in Revenue. The Revenue has been growing by 17.10% on average per year.
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

The Earnings Per Share is expected to grow by 10.60% on average over the next years. This is quite good.
LPLA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.27% yearly.
EPS Next Y18.58%
EPS Next 2Y18.27%
EPS Next 3Y20.25%
EPS Next 5Y10.6%
Revenue Next Year27.19%
Revenue Next 2Y21.99%
Revenue Next 3Y18.11%
Revenue Next 5Y8.27%

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.
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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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 21.39, LPLA is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of LPLA indicates a slightly more expensive valuation: LPLA is more expensive than 60.09% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. LPLA is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.16, LPLA is valued correctly.
LPLA's Price/Forward Earnings ratio is in line with the industry average.
LPLA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 21.39
Fwd PE 16.16
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPLA indicates a rather cheap valuation: LPLA is cheaper than 81.12% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.24
LPLA Per share dataLPLA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of LPLA may justify a higher PE ratio.
LPLA's earnings are expected to grow with 20.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)1.18
EPS Next 2Y18.27%
EPS Next 3Y20.25%

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5

5. Dividend

5.1 Amount

LPLA has a yearly dividend return of 0.33%, which is pretty low.
Compared to an average industry Dividend Yield of 8.00, LPLA is paying slightly less dividend.
With a Dividend Yield of 0.33, LPLA pays less dividend than the S&P500 average, which is at 2.42.
Industry RankSector Rank
Dividend Yield 0.33%

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 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

8.24% of the earnings are spent on dividend by LPLA. This is a low number and sustainable payout ratio.
LPLA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.24%
EPS Next 2Y18.27%
EPS Next 3Y20.25%
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 (7/1/2025, 8:43:18 PM)

After market: 373.05 0 (0%)

373.05

-1.92 (-0.51%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)07-24 2025-07-24/amc
Inst Owners98.69%
Inst Owner Change8.99%
Ins Owners0.39%
Ins Owner Change1.42%
Market Cap29.84B
Analysts82.73
Price Target433.33 (16.16%)
Short Float %2.02%
Short Ratio2.52
Dividend
Industry RankSector Rank
Dividend Yield 0.33%
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)8.89%
PT rev (3m)1.6%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-7.84%
EPS NY rev (1m)0.8%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)2.82%
Revenue NY rev (3m)2.39%
Valuation
Industry RankSector Rank
PE 21.39
Fwd PE 16.16
P/S 2.26
P/FCF N/A
P/OCF 155.81
P/B 9.55
P/tB N/A
EV/EBITDA 14.24
EPS(TTM)17.44
EY4.67%
EPS(NY)23.08
Fwd EY6.19%
FCF(TTM)-4.62
FCFYN/A
OCF(TTM)2.39
OCFY0.64%
SpS165.32
BVpS39.06
TBVpS-8.25
PEG (NY)1.15
PEG (5Y)1.18
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 3.9
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 Y18.58%
EPS Next 2Y18.27%
EPS Next 3Y20.25%
EPS Next 5Y10.6%
Revenue 1Y (TTM)26.32%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%29.56%
Revenue Next Year27.19%
Revenue Next 2Y21.99%
Revenue Next 3Y18.11%
Revenue Next 5Y8.27%
EBIT growth 1Y13.48%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year35.92%
EBIT Next 3Y24.28%
EBIT Next 5Y13.75%
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%