LPL FINANCIAL HOLDINGS INC (LPLA) Stock Fundamental Analysis
USA - NASDAQ:LPLA - US50212V1008 - Common Stock
314.73 USD
+1.84 (+0.59%)
314.73 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LPLA. LPLA was compared to 238 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make LPLA suitable for growth investing!
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.
LPLA had positive earnings in each of the past 5 years.
In the past 5 years LPLA always reported a positive cash flow from operatings.
1.2 Ratios
LPLA's Return On Assets of 6.40% is fine compared to the rest of the industry. LPLA outperforms 77.31% of its industry peers.
LPLA has a Return On Equity of 22.03%. This is amongst the best in the industry. LPLA outperforms 88.24% of its industry peers.
LPLA's Return On Invested Capital of 10.46% is amongst the best of the industry. LPLA outperforms 84.45% 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 7.59%.
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
Looking at the Profit Margin, with a value of 7.91%, LPLA is doing worse than 63.03% of the companies in the same industry.
In the last couple of years the Profit Margin of LPLA has declined.
LPLA's Operating Margin of 13.92% is on the low side compared to the rest of the industry. LPLA is outperformed by 65.13% 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.
LPLA's Gross Margin has been stable in the last couple of years.
| 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
Compared to 1 year ago, LPLA has about the same amount of shares outstanding.
Compared to 5 years ago, LPLA has less shares outstanding
LPLA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.33 indicates that LPLA is not in any danger for bankruptcy at the moment.
The Altman-Z score of LPLA (3.33) is better than 77.31% of its industry peers.
A Debt/Equity ratio of 1.44 is on the high side and indicates that LPLA has dependencies on debt financing.
LPLA's Debt to Equity ratio of 1.44 is on the low side compared to the rest of the industry. LPLA is outperformed by 69.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.33 |
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 81.09% 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 81.09% 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%.
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)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
LPLA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.60% yearly.
Based on estimates for the next years, LPLA will show a quite strong growth in Revenue. The Revenue will grow by 17.09% on average per year.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.42, which indicates a rather expensive current valuation of LPLA.
Compared to the rest of the industry, the Price/Earnings ratio of LPLA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.86. LPLA is valued slightly cheaper when compared to this.
LPLA is valuated correctly with a Price/Forward Earnings ratio of 13.54.
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 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 13.54 |
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 86.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.71 |
4.3 Compensation for Growth
LPLA's 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.
A more expensive valuation may be justified as LPLA's earnings are expected to grow with 20.10% in the coming years.
PEG (NY)1.01
PEG (5Y)0.96
EPS Next 2Y18.7%
EPS Next 3Y20.1%
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 8.41, LPLA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.41, 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 3.76%.
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
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%
314.73
+1.84 (+0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change1.64%
Ins Owners0.39%
Ins Owner Change0.11%
Market Cap25.18B
Analysts80
Price Target442.34 (40.55%)
Short Float %2.75%
Short Ratio2.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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)-2.59%
PT rev (3m)2.08%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)-3.17%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-1.14%
Revenue NQ rev (1m)1.25%
Revenue NQ rev (3m)9.6%
Revenue NY rev (1m)2.78%
Revenue NY rev (3m)5.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.42 | ||
| Fwd PE | 13.54 | ||
| P/S | 1.78 | ||
| P/FCF | N/A | ||
| P/OCF | 44.67 | ||
| P/B | 4.96 | ||
| P/tB | 20.64 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)18.07
EY5.74%
EPS(NY)23.25
Fwd EY7.39%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)7.05
OCFY2.24%
SpS176.57
BVpS63.43
TBVpS15.25
PEG (NY)1.01
PEG (5Y)0.96
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 | 3.33 |
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%